Tax Deductions for IT Professionals
Working in IT? Whether you're a developer, sysadmin, or analyst, you likely have deductions for home office setup, courses, and professional subscriptions that many people forget to claim.
This guide covers 25 deduction categories with 235+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
💰 Real-World Example
Priya: Priya is a software developer who works from home 3 days a week. She claimed WFH expenses (780 hours × 67c = $523), a monitor ($450), professional certifications ($800), and internet (40% work use = $480).
Result: ~$790 back on a $110k salary
Illustrative example only. Your situation may differ.
Deduction Categories
25
Specific Items
235
Income Types
0
Work-Related Deductions (25)
Amounts you do and don't include
- salary and wages, including cash or bonus payments
- compensation and insurance payments – for example, payments made under an income protection insurance policy to replace salary and wages.
- You must include all the income you receive during the income year as an IT professional in your tax return, this includes:
- Don't include as income any reimbursements you receive.
- Your income statement or a payment summary will show your salary, wages and allowances for the income year.
Allowances
- to help you pay for a work expense – for example, vehicle allowance
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, on call allowance
- as an amount for having special duties, skills or qualifications – for example, first aid qualifications.
Allowances not on your income statement or payment summary
- don't include it as income in your tax return
- can't claim any deductions for the work expenses the allowance covers.
- include the allowance as income in your tax return
- include a claim for the work expenses you incur in your tax return
- must have records of your expenses.
Allowances and claiming a deduction
- from her office to a training facility to attend training
- to attend clients' premises to work on their systems.
- The following table sets out allowances you may receive and when you can claim a deduction.
- Allowance types, reason for the allowance and if you can claim a deduction
- Example of allowance type
- Deduction (Yes or No)
- Compensation for an aspect of your work that is unpleasant, special or dangerous or industry peculiarities
- These allowances don't help you pay for deductible work-related expenses
- An amount for certain expenses
- If you incur deductible expenses
- An amount for special skills
- A first aid certificate
- Health and safety representative
- Mark is an employee computer programmer and he is the health and safety representative for his office. Mark's employer pays him an allowance for each week during the income year that he holds that position. The training Mark requires to be a health and safety representative is provided by his employer.
- At the end of the income year, the allowance is on his income statement.
- Mark must include the health and safety allowance as income in his tax return.
- Mark can't claim a deduction, the allowance compensates Mark for his special skills and additional duties. It's not to cover any expenses he might incur.
- Bronwyn is a computer system repairer. During the income year, Bronwyn uses her own vehicle to travel:
- Bronwyn's employer pays her 80c per kilometre when she uses her car for work purposes.
- At the end of the year, her income statement shows an allowance of $256 for using her car for work (320 kms × $0.80 = $256).
- Bronwyn must include the car allowance as income in her tax return.
- Bronwyn can claim a deduction for the cost of using her car for work purposes. She can't claim the amount of the allowance she receives. Bronwyn must calculate the amount of the deduction using the records she keeps whenever she uses her own car for work purposes.
- In the past year Bronwyn has kept a record of the work trips she did using her own car, but she doesn't keep a logbook. Her records show she travels 320 kms for work purposes.
- As Bronwyn has not kept a logbook, she uses the cents per kilometre method to claim a deduction. The cents per kilometre method rate for the 2024–25 income year is 88c per kilometre.
- Bronwyn claims a deduction of $281.60. Bronwyn calculates her deduction as 320 kms × $0.88 = $281.60.
Reimbursements
- you don't include the reimbursement as income in your tax return
- you can't claim a deduction for them.
- Deductions for work expenses
- Record keeping for work expenses
Car expenses
- live a long way from your usual or regular workplace
- have to work outside normal business hours – for example, weekend or early morning shifts.
- the tools or equipment are essential to perform your employment duties
- the tools or equipment are bulky, meaning that because of the size and weight, they are awkward to transport
- they can only be transported conveniently using a motor vehicle
- there is no secure storage for such items at the workplace.
- directly between separate jobs on the same day (provided neither of the workplaces is your home) – for example, you travel from the office you work in as a software developer to your second job as university lecturer
- to and from an alternative workplace for the same employer on the same day – for example, a computer repairer who travels to multiple call outs per day
- from home directly to an alternative workplace – for example, travelling from home directly to a clients' office to install computer software.
- own the car
- lease the car (directly from the finance company)
- hire the car under a purchase agreement (with the car dealership or a finance company).
- vehicle with a carrying capacity of one tonne or more (such as a ute)
- vehicle that can transport 9 passengers or more (such as a minibus).
Example: travel between workplaces
- Blake is an ICT manager at a major telecommunications company in the city. In his job he must consult with clients about current communication systems to establish any enhancements required. He uses his own car to travel to these meetings and goes directly home after the meetings because they finish late.
- Blake can claim the cost of travelling from his city office to his client meetings and the cost of travelling from the meetings to his home. He can't claim travel between his home and regular workplace in the city as this is private travel.
Example: shifting places of work
- from her home to the first client
- between clients' premises
- from the last client to her home.
Child care
- You can't claim a deduction for the cost of child care (including school holidays and before and after school care) when you’re working. It's a private expense.
Clothing and uniform expenses (including footwear)
- protective clothing – clothing with protective features or functions you wear to protect you from specific risks of injury or illness at work. For example, cleaning aprons, non-slip shoes or smocks worn to stop you coming into contact with harmful substances. Conventional clothes you wear at work are not regarded as protective clothing if they lack protective qualities designed for the risks of your work. This includes jeans, drill shirts, shorts, trousers, socks, closed shoes.
- occupation-specific – clothing that distinctly identifies you as a person with a particular profession, trade or occupation. For example, a judge's robes or a chef's checquered pants. Items traditionally worn in a profession are not occupation-specific where the clothing is worn by multiple professions.
- a compulsory uniform – clothing that your employer strictly and consistently enforces you wear by workplace agreement or policy and distinctly identifies either you as an employee working for a particular employer
- the products or services your employer provides
- a non-compulsory uniform – a uniform that is not compulsory to wear and that your employer registers on the Register of Approved Occupational Clothing.
Example: claiming clothing expenses
- Danielle is an IT manager with a large company. She wears a black shirt with the company monogram supplied by her employer. It's compulsory for her to wear the shirt at work. Only employees of the company wear this shirt and it isn't available for the general public to buy.
- Danielle's trousers, skirts and shoes are items of ordinary, everyday clothing.
- Danielle's employer supplies the shirt, therefore she can't claim a deduction for the cost of the shirt. However, if Danielle had to buy the shirt she could claim a deduction for the cost of it because it's a compulsory uniform.
- As Danielle's trousers, skirts and shoes are of a conventional nature, Danielle can't claim for the cost of buying these. These are private expenses.
Drivers licence
- You can't claim a deduction for the cost to get or renew your drivers licence , even if you must have it as a condition of employment. This is a private expense.
Entertainment and social functions
- work breakfasts, lunches or dinners
- attendance at sporting events as a spectator
- gala or social nights
- concerts or dances
- cocktail parties
- other similar types of functions or events.
Example: entertainment costs
- IT professionals expenses G–P
- IT professionals expenses R–S
- IT professionals expenses T–W
Glasses, contact lenses and anti-glare glasses
- You can't claim a deduction for prescription glasses or contact lenses , even if you need to wear them while working. These are private expenses.
- You can claim a deduction for the cost of protective glasses if you wear them to reduce the real and likely risk of illness or injury while working. Protective glasses include anti-glare or photochromatic glasses, sunglasses, safety glasses or goggles.
- You can only claim a deduction for the work-related use of the item.
Example: deduction for safety glasses
- Daisy is a computer system repairer. Occasionally repairs require Daisy to solder faulty parts. When she does any soldering, Daisy uses safety glasses to protect her eyes.
- Daisy can claim a deduction for the cost of safety glasses she wears when she is soldering faulty computer parts. The safety glasses reduce the real and likely risk of injuring her eyes while she is working.
Insurance of tools and equipment
- You can claim a deduction for the cost to insure your tools and equipment to the extent that you use them for work-related purposes.
Laundry and maintenance
- protective (for example, a hi-vis jacket)
- occupation specific and not a conventional everyday piece of clothing such as jeans or general business attire
- a uniform either non-compulsory and registered by your employer on the Register of Approved Occupational Clothing or compulsory.
- $1 per load if it only contains clothing you wear at work from one of the categories above
- 50c per load if you mix personal items of clothing with work clothing from one of the categories above.
Example: When you can claim a laundry deduction for compulsory uniform
- Chloe is a data analyst for an IT company. Her employer provides staff with polo shirts with the company’s name and logo on them. It is a requirement for Chloe to wear the polo shirt her employer provides with plain black pants or a skirt to work.
- Chloe can claim a deduction for the cost of laundering her shirts.
- Even though Chloe’s employer requires her to wear black pants and skirts to work she can't claim a deduction for laundering these items. These items are conventional clothing and are not unique or distinctive to her employer.
- Chloe works for 40 weeks of the income year and washes her polo shirts twice a week in a mixed load with other clothes.
- Chloe calculates her laundry claim as follows:
- 2 × 40 weeks × $0.50 per load = $40
Example: No deduction for the laundry costs of conventional clothing
- James works in the IT department of a bank. It is a requirement that he complies with dress standards and wears office attire while at work. James buys a number of collared shirts and long pants from a department store.
- James can't claim the cost of buying or laundering of these items as they are conventional clothing and private in nature.
Meal and snack expenses
- overtime meal expenses , but only if you buy and eat the meal while you are performing overtime and you receive an overtime meal allowance under an industrial law, award or agreement
- the cost of meals you incur when you are travelling overnight for the purpose of carrying out your employment duties ( travel expenses ).
- You can't claim for the cost of food, drink or snacks you consume during your normal working hours, even if you receive a meal allowance. These are private expenses.
Newspapers and other news services, magazines and professional publications
- a direct connection between your specific work duties and the content
- the content is specific to your employment and is not general in nature.
- The cost of newspapers, other news services and magazines are generally private expenses and not deductible.
- You can claim a deduction for the cost of buying or subscribing to a professional publication, newspaper, news service or magazine if you can show:
- If you use the publication for work and private purposes, you can only claim the portion related to your work-related use.
Overtime meal expenses
- you receive an overtime meal allowance under an industrial law, award or agreement
- the allowance is on your income statement or payment summary as a separate allowance
- you include the allowance in your tax return as income.
- up to reasonable amount, you don’t have to get and keep receipts
- more than the reasonable amount, you must get and keep receipts for your expenses.
Example: deduction for overtime meal
- Carl is a software developer. 30 times during the year Carl works overtime on the weekend to complete priority work. He receives an overtime meal break and an overtime meal allowance of $20 under the award each time this occurs.
- Carl generally buys and eats a meal costing $15 during overtime. Carl's income statement shows the overtime meal allowances as a separate allowance totalling $600. That is, 30 overtime shifts × $20.
- In his tax return, Carl includes the allowance as income and claims a deduction. He works out his deduction as:
- $15 × 30 overtime shifts = $450
- That is the actual amount he spent on overtime meals multiplied by the number of overtime shifts.
- As the amount Carl spent on his meals is less than the reasonable amount, Carl doesn't have to keep receipts. However, if asked, Carl will have to show that he spent the $450 on overtime meals and how he worked out his claim.
- For more information, see TD 2024/3 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2024–25 income year?
Parking fees and tolls
- You can't claim a deduction for parking at or near a regular place of work. You also can't claim a deduction for tolls you incur for trips between your home and regular place of work. These are a private expense.
- You can claim a deduction for parking fees and tolls you incur on work-related trips.
Example: parking fees
- Spencer drives his own car to work each day and pays to park in the secure car park next to the IT company where he works.
- Once a month Spencer drives his car to a training facility to complete mandatory training, required for his role as a cyber security officer. He pays for parking and his employer does not reimburse him.
- Spencer can't claim the cost of parking near his regular place of work. However, Spencer can claim his parking at the training facility as he incurs the cost on a work-related trip.
Phone, data and internet expenses
- provides you with a phone for work and pays for your usage
- reimburses you for the costs you incur.
- Mobile phone, mobile internet and other devices
- Home phone and internet expenses
Example: calculating phone expenses
- Mario uses his mobile phone for work purposes. He is on a set plan of $49 a month.
- He receives an itemised account from his phone provider each month including details of the phone calls he has made.
- At least once a year, Mario prints out his account and highlights the work-related phone calls he made. He makes notes on his account for the first month about who he is phoning for work such as his manager, colleagues and his clients.
- Out of the 300 phone calls he has made in a 4-week period, Mario works out that 120 (40%) of the phone calls are for work. He applies that percentage to his monthly plan amount ($49 a month).
- Mario calculates his phone calls for work purposes as follows:
- Total work phone calls ÷ total number of phone calls = work use percentage for phone calls
- 120 ÷ 300 = 0.40 (that is 40%)
- Mario can claim 40% of the total bill of $49 for each month for work purposes, calculated as:
- $49 × 0.40 = $19.60
- As Mario was only at work for 46 weeks of the year (10.6 months), he works out his work-related mobile phone expense deduction as follows:
- 10.6 months × $19.60 = $207.76
Example: work and private use
- IT professionals expenses A–F
- IT professionals expenses R–S
- IT professionals expenses T–W
Removal and relocation expenses
- You can’t claim a deduction for the cost to transfer or relocate to a new work location. This is the case whether the move is a condition of your existing job or you are taking up a new job.
Example: relocating due to transfer
- Caitlyn is an IT consultant in Sydney. She is temporarily transferred to a position in Newcastle for 2 years by her employer.
- Caitlyn can't claim a deduction for her relocation costs, rent or other living expenses.
Repairs to tools and equipment
- You can claim a deduction for repairs to tools and equipment you use for work. If you also use them for private purposes, you can only claim an amount for the work-related use.
Self-education expenses
- maintains or improves the skills and knowledge you need for your current duties
- results in or is likely to result in an increase in your income from your current employment.
- doesn't have a connection with your current employment
- only relates in a general way to your current employment
- enables you to get employment or change employment.
- Higher Education Loan Program (HELP) (FEE-HELP and HECS-HELP)
- VET Student Loans (VSL)
- Australian Apprenticeship Support Loans (AASL)
- Student Financial Supplement Scheme (SFSS)
- Student Start-up Loan (SSL).
Example: self-education expenses
- Peter is responsible for the maintenance of the existing infrastructure network for his employer's business. Part of his duties are to manage and mitigate cyber security risks.
- Peter is studying a Graduate Certificate in Business Cyber Security.
- As the study is being undertaken to improve the skills and knowledge that Peter requires to carry out his duties, Peter can claim a deduction for all of the costs associated with his course.
Example: no reimbursement for costs
- Lei-shun is an information and security assurance manager. Lei-shun is enrolled in a full-fee paying place studying a Master of Information Technology (Professional). Lei-shun uses a FEE-HELP loan to pay the course fees.
- As an information and security assurance manager, Lei-shun works in a team that ensures his employer's information systems and data are protected, develops security policies, manages security risks and ensures compliance with relevant regulations and standards.
- As the university that offers the course is a long way from where Lei-shun lives, he completes the course online. However, he has to attend the university in person for 5 consecutive days each semester. It's likely he'll receive a promotion if he successfully obtains his degree.
- Lei-shun doesn't receive a reimbursement for his expenses from his employer.
- Lei-shun can claim a deduction for the fees he pays with the assistance of the FEE-HELP loan but he can't claim any repayments made to the loan. Lei-shun can also claim a deduction for the cost of travel to and from his place of education for 5 nights each semester. This includes the cost of his overnight accommodation, meals and incidentals.
Example: self-education expenses you can't claim
- Louis is a computer science student. His studies focus on system analysis, software design and programming. Louis also works at the university laboratory installing computers.
- Louis can't claim a deduction for the costs associated with his studies as his course and job are only generally related.
- His work at the university laboratory only needs a low-level of computer knowledge that Louis had prior to his employment. The high-level professional skills Louis acquires from the course are well beyond the skills required for his current job. Louis is undertaking the course to get future employment.
Seminars, conferences and training courses
- You can claim for the cost of seminars, conferences and training courses that relate to your work as an IT professional.
- The costs you can claim includes fares to attend the venue where the seminar, conference or training course is held and registration costs. If you need to travel and stay away from home overnight to attend such an event, you can also claim the cost of accommodation and meals.
- You may not be able to claim all of your expenses if attending a seminar, conference or training course is for both work-related and private purposes. If the private purpose is incidental, such as a catered lunch or a reception for delegates, you can still claim all your expenses. However, if the main purpose is not work-related, such as attending a conference while on a holiday, you can only claim the direct costs. Direct costs include the registration costs.
- Where you have a dual purpose for attending the seminar, conference or training course you can only claim the work-related portion. For example, you add a holiday of one week to a training course that runs for one week.
Example: claiming conference expenses
- Kostas, a systems engineer, attends a conference on cloud computing organised by a number of major computer companies. The conference is in another state from where Kostas lives and works.
- The conference will allow Kostas to learn about new and emerging technology that he will use in his role. The cost of attending the conference is $1,500 including entrance fees, travel to and from the conference, accommodation and meals.
- Kostas can claim a deduction for the expenses he incurs for the conference. The course improves the skills and knowledge he requires for his role as a systems engineer.  
Example: conference expenses
- IT professionals expenses A–F
- IT professionals expenses G–P
- IT professionals expenses T–W
Taxi, ride-share, public transport and car hire
- You can claim a deduction for transport costs if you travel in the course of performing your work. For example, taking a taxi from your regular workplace to another work location.
- You can’t claim a deduction for transport expenses you incur to travel between home and your regular place of work, these are private expenses.
- You can't claim a deduction if your employer reimburses you for these expenses.
Tools and equipment
- you use it mainly to produce non-business assessable income
- it's not part of a set that together cost more than $300
- it's not identical, or substantially identical to, other items that together cost more than $300.
- cost more than $300
- is part of a set that together cost more than $300
- is identical, or substantially identical to, other items that together cost more than $300.
Example: decline in value deduction
- Mateo works from home 2 days a week. He buys a computer which comes with the operating system already installed for $2,000. He pays $99 for an annual subscription for antivirus software that he needs for his work.
- Mateo can claim a deduction for the decline in value of the computer and operating system. He can also claim a deduction for the cost of the anti-virus software ($99) in the year he bought it.
- If Matteo also uses the computer or software for personal use, he will need to apportion the decline in value and the software and claim a deduction only for the percentage of his work use.
Example: tools costing less than $300
- incurs the expense
- it directly relates to his income-producing activities
- has a record to prove it.
Example: no deduction for tools
- Jennifer is a computer technician. Her employer provides all the tools required to complete her work. If Jennifer requires any additional tools to aid her, it is policy for the company to supply it or provide a full reimbursement for the cost of the item.
- Jennifer's employer reimburses her for the purchase of a screwdriver set which she uses to complete her duties.
- Jennifer can't claim a deduction for buying the screwdriver set as she is reimbursed for the expense by her employer.
Travel expenses
- travel for work
- sleep away from your home overnight in the course of performing your employment duties.
- you slept in accommodation your employer provides
- you eat meals your employer provides
- your employer or a third party reimburses you for any costs you incur.
- you were away overnight
- you have spent the money
- the travel directly relates to earning your employment income
- how you worked out your claim.
- the travel allowance is not shown on your income statement or payment summary
- the travel allowance doesn't exceed the Commissioner's reasonable amount (the reasonable amount is the amount we set each year for determining whether an exception from keeping written evidence applies for accommodation, meal and incidental expenses which are covered by a travel allowance)
- you spent the whole allowance on deductible accommodation, meal and incidental expenses, if applicable.
- you received a travel allowance from your employer for the expenses
- your deduction is less than the Commissioner’s reasonable amount.
Example: deduction for meals with no allowance
- Peter is the lead designer of a new IT system for a large company based in Melbourne. Peter works in their Perth office and there is a requirement for him to attend monthly meetings to provide updates. Due to the distance between the two offices, Peter stays overnight in Melbourne before returning to Perth.
- His employer pays for his flights and accommodation. Peter purchases his own meals in Melbourne and his employer doesn't pay him a meal allowance or reimburse him for the expense.
- Peter can claim a deduction for the meal expenses he incurs during his work trip. He must keep receipts for all of his meal expenses because he did not receive a travel allowance from his employer.
- He can't claim a deduction for the airfares and accommodation as he didn’t incur the expense.
Example: no deduction for travel expenses
- Christine is a technical support officer in an IT company based in Adelaide. Christine attends a 2 day training course on the topic of Executive Leadership in the workforce in Sydney. It is not a requirement for Christine in her role to have specific leadership skills to perform her role nor is she an executive.
- Christine’s employer allows her to take annual leave to attend the course and doesn’t pay for or reimburse any of the expenses to attend.
- Christine can't claim a deduction for any of her expenses as it does not have a sufficient connection to her current role.
Example: reasonable allowance amount
- it's not shown on his income statement
- it's less than the reasonable allowance amount
- he spends it all to cover his travel expenses.
Union and professional association fees
- You can claim a deduction for union and professional association fees you pay. You can use your income statement or payment summary as evidence of the amount you pay if it's shown on there.
Working from home expenses
- use one of the methods set out by us to calculate your deduction
- keep the records required for the method you choose to use.
- coffee, tea, milk and other general household items consumed while working from home which your employer may provide you at work
- costs that relate to your children's education, for example, iPads, desks, subscriptions for online learning
- expenses your employer pays for or reimburses you for the expense, including setting up your home office.
- the decline in value of items provided to you by your employer – for example, a laptop or a phone.
- PS LA 2001/6 Verification approaches for electronic device usage expenses
- TR 93/30 Income tax: deductions for home office expenses
- PCG 2023/1 Claiming a deduction for additional running expenses incurred while working from home
- IT professionals expenses A–F
- IT professionals expenses G–P
- IT professionals expenses R–S
- Income and allowances
- Record keeping for work expenses
✅ Deduction Checklist for IT Professionals
Use this checklist at tax time to make sure you don't miss any deductions.
💡 Practical Tips
📱 Use the myDeductions Tool
Download the ATO app and use myDeductions to record expenses throughout the year. Much easier than collecting receipts at tax time.
🧾 The $300 Rule
You can claim up to $300 in work-related expenses without receipts — but you must have actually spent the money and it must be related to earning your income.
🏠 Working From Home
If you work from home, you can claim 67 cents per hour (revised fixed rate) for running expenses like electricity, internet, and phone. Keep a record of hours worked.
🚗 Car Expenses
Choose between the cents per km method (85c/km, max 5,000 km) or logbook method (actual expenses × business use %). A 12-week logbook is valid for 5 years if your circumstances don't change.
⚠️ Common Mistakes & ATO Audit Flags
The ATO actively audits it professionals claims. Avoid these common errors and know what triggers extra scrutiny.
❌ Common Mistakes
Claiming entire internet bill as work expense
Fix: Only the work-use portion is deductible. Calculate your work % based on actual usage or a reasonable estimate (e.g., 40%).
Not depreciating items over $300
Fix: A $2,000 monitor must be depreciated over its effective life (4-5 years), not claimed in full upfront.
Forgetting subscription services (GitHub Pro, cloud services, etc.)
Fix: If you pay for tools used for work, they're deductible. Keep a list of all subscriptions.
🔍 ATO Audit Flags
WFH claims exceeding actual hours
ATO cross-references employer records. If your employer says you're in-office 5 days, you can't claim 40 hours/week WFH.
Claiming equipment already provided by employer
If your employer gave you a laptop, you can't also claim one. The ATO checks FBT returns.
Data sourced from the Australian Taxation Office — IT Professionals Guide. Last updated: 2026-03-14.