Tax Deductions for Lawyers
Between practising certificates, CPD requirements, and professional subscriptions, lawyers have plenty of deductions. If you're working from home on cases, that's claimable too.
This guide covers 38 deduction categories with 305+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
💰 Real-World Example
Rachel: Rachel is a solicitor at a mid-tier firm. She claimed her practising certificate ($1,400), Law Society membership ($550), CPD seminars ($600), legal research databases ($480), and WFH expenses (600 hours × 67c = $402).
Result: ~$1,250 back on a $130k salary
Illustrative example only. Your situation may differ.
Deduction Categories
38
Specific Items
305
Income Types
0
Work-Related Deductions (38)
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 as a lawyer during the income year in your tax return, this includes:
- Don't include as income any reimbursements you receive.
- Your income statement or payment summary will show all your salary, wages and allowances for the income year.
Allowances
- to help you pay for a work expense – for example, mobile phone expenses
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, working in a remote locality or being on stand-by
- 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
- The following table sets out allowances you may receive and when 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 for industry peculiarities
- Harassment contact officer allowance
- Working in a remote locality
- These allowances don't help you pay for deductible work-related expenses
- An amount for certain expenses
- Car or vehicle allowance
- If you incur deductible expenses
- An amount for special skills
- A first aid certificate
- Health and safety representative allowance
- Penny is a solicitor and is the health and safety representative for her office. Penny's employer pays her an allowance for each week during the year that she holds that position. The training Penny requires to be a health and safety representative is provided by her employer.
- At the end of the income year, the allowance is on her income statement.
- Penny must include the amount of the allowance in her tax return, but she can't claim a deduction for any expenses against the allowance because she has not incurred any deductible expenses.
- The allowance compensates Penny for her special skills and additional duties. It's not to cover any expenses she might incur.
- Bronwyn is a law clerk. During the income year, Bronwyn uses her own car to travel from the office to the Court to drop off documents. 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 she was paid 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. Instead, she must calculate the amount of the deduction based on 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 used her car to travel 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 $282. Bronwyn calculates her deduction as 320 kms × $0.88 = $282.
Reimbursements
- you don't include the reimbursement as income in your tax return
- you can't claim a deduction for the expenses.
- Deductions for work expenses
- Record keeping for work expenses
Admission fees
- You can't claim a deduction for the cost of admission fees. This is because you incur the expense to enable you to start your employment, not during the course of your employment.
Annual practising certificate fees
- You can claim a deduction for the cost of renewing your professional memberships and accreditations if you need it to work in your current employment.
- You can't claim the initial cost of getting your professional memberships and accreditations as a deduction. This is because you incur the expense to enable you to start employment, not while earning your income.
Example: prerequisite expenses
- Drew finishes his legal training in Townsville and is looking to start his career as a solicitor. To practise as a solicitor, Drew needs to apply to the Supreme Court of Queensland to be admitted as a lawyer and then apply for a practising certificate. Until he is granted both, he can't practise law.
- Drew can't claim a deduction for the cost of his admission or practising certificate because he incurs it so he can start earning employment income. Once he is employed, he will be able to deduct the cost of renewing his practise certificate each year, as it allows him to continue earning his income as a solicitor.
Bags and cases for work items
- If you use a bag or a case – for example a briefcase, to carry items for work, you can claim a deduction to the extent that it is used for work purposes. Work items may include laptops, legal documents and briefs but do not include private and domestic items like gym gear, food or a personal phone or tablet. To be deductible, your job must require you to transport work items and the bag must be suitable for that purpose.
- If the bag or case cost you $300 or less, and you use it for work only, you can claim an immediate deduction for the whole cost of the bag in the year you buy it. If the bag or case cost more than $300, you can claim a deduction for its decline in value over the bag's or case's effective life .
- If you use the bag or case to carry both work and private items, you need to apportion the expense between work-related and private use, and you can only claim the work-related portion.
Example: bag deductible
- Michael is a solicitor. Michael buys a leather satchel for $450. He uses the satchel to carry confidential material and legal documents to court. Michael does not use the satchel for any other purpose.
- As the satchel cost more than $300, Michael can claim a deduction for the decline in value of the satchel over its effective life.
Example: bag not deductible
- Francisco is a law clerk. He buys a holdall bag for $250 and uses it every day to take his lunch, personal tablet and gym clothes to work.
- Francisco can't claim a deduction for the bag, as he only uses it to transport private items to and from work.
Books and journals
- it cost $300 or less
- you use the publication mainly for work-related purposes, that is more than half (50%) of the time for work purposes
- the publication isn't part of a set you start to hold in that income year where the total set costs more than $300
- the item isn't one of a number of identical or substantially identical items that together cost more than $300.
Example: dividing the cost of a subscription
- the content of each individual item is directly relevant to your duties and cost more than $300
- the item is part of a set or a number of items that are identical or substantially identical which cost more than $300.
- On 1 January 2024, Martin, a senior clerk employed by a legal firm, paid $1,250 for a subscription for a monthly professional journal. The subscription is for 1 January 2024 – 31 January 2025 (397 days).
- As Martin has paid in advance for more than 12 months, he must apportion his deduction over the income years 2023–24 and 2024–25. Martin’s deductions are:
- 2023–24 (1 January 2024 to 30 June 2024)
- $1,250 × (182 ÷ 397) = $573
- 2024–25 (1 July 2024 to 31 January 2025)
- $1,250 × (215 ÷ 397) = $677
- The total deduction allowed proportionately over the income years 2023–24 and 2024–25 is $1,250.
- You can claim the decline in value of your professional library over its effective life, if:
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, travelling from the court to represent a client to your second job as a university lecturer
- to and from an alternative workplace for the same employer on the same day – for example, travelling from the office to meet a client in custody or attend court
- from home to an alternative place of work – for example, driving directly to your appointment at your client's premises.
- 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: home to regular place of work
- Nigel is a lawyer. He receives a phone call at his home outside normal working hours as a client has been arrested. Nigel travels from his home to his office in response to this phone call.
- Even though Nigel is called outside his normal working hours, Nigel can't claim a deduction from his home to the office. It is travel to a regular place of work and he does not incur the cost in earning his income. The expenses are private.
Example: home to an alternative place of work
- home to the court
- the court to her suburban office.
- Renata is lawyer. Her office is located in a suburb of Sydney. When Renata attends court in the city, she drives from her home directly to the court. After she has finished at the court, Renata drives back to her suburban office.
- Renata can claim a deduction for the expenses she incurs when she drives from:
- Renata can't claim a deduction for the expenses she incurs when she drives home at the end of the day from her suburban office.
Example: bulky equipment
- Charlie is a solicitor. He decides to do some work at home on some of his cases over the weekend. Charlie uses his car to carry home 5 containers of working papers which weigh around 50 kg.
- Charlie can't claim a deduction for car expenses when he drives from the office to his home on Friday afternoon and from his home to the office on Monday morning. Although the documents are bulky, he has made a personal choice to carry the documents 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, and the expenses have no direct connection to earning your income.
Clothing and uniform expenses (including footwear)
- protective clothing – clothing that has protective features or functions that 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 distinctly identifies you as a person associated with a particular profession, trade or occupation. For example, a judge's robes or a chef's chequered 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: conventional clothing
- Lena wears a business suit to work. It isn't compulsory for a staff member to wear a business suit, but the employer encourages staff members to do so.
- Lena can't claim a deduction for the cost of buying or cleaning her business suits, even if her employer tells her to wear them. The suits are conventional clothing.
Example: compulsory uniform with logo
- distinctive items with the employer's logo
- compulsory for him to wear at work.
- Mike's employer requires him to buy and wear company shirts. Each shirt has his employer's company logo embroidered on it. As part of his uniform, he also has to wear plain black pants and black shoes.
- Mike can claim a deduction for the cost of buying and laundering the shirts as they are:
- However, he can't claim the cost of buying or cleaning his black pants or shoes because the items are conventional clothing and the cost is private.
- Mike can't claim a deduction for the cost of the embroidered company shirts if they were provided by his employer or he was reimbursed for the cost.
Club membership fees
- You can't claim a deduction for club membership fees – for example, your annual golf club membership fees, even if it helps you to manage client relationships.
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
- gala or social nights
- concerts or dances
- cocktail parties
- other similar types of functions or events.
Example: entertainment costs
- Rachael attends a social breakfast organised by the Australian Bar Association. These breakfasts are held every other month to encourage lawyers within the region to meet socially with colleagues.
- Even though her employer encourages staff to attend, Rachael can't claim a deduction for the cost of attending the breakfast as it is a private expense. That is because there is no direct connection to her work duties.
Fines and penalties
- You can't claim a deduction for any fines or penalties you get when you travel to work or during work. Fines may include parking and speeding fines or penalties.
First aid courses
- a designated first aid person
- need to complete a first aid training course to assist in emergency work situations.
- Lawyer expenses G–O
- Lawyer expenses P–S
- Lawyer 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 anti-glare glasses if you wear them to reduce the real and likely risk of illness or injury while working as a lawyer.
- You can only claim a deduction for the work-related use of the item.
Gifts and greeting cards
- You can't claim a deduction for the cost of gifts and greeting cards you buy for clients. This is a private expense.
Grooming expenses
- you receive an allowance for grooming
- your employer expects you to be well groomed.
- You can't claim a deduction for hairdressing, cosmetics, hair and skin care products, even if:
- All grooming expenses and products are private expenses.
Insurance expenses
- insurance premiums you pay to cover yourself for loss of employment income
- the cost of professional indemnity insurance.
- Insurance expenses aren't work-related expenses; however, you may still be able to claim a deduction for:
Example: apportioning insurance deduction
- Dee takes out an income protection and personal injury policy through her insurer. She pays $250 a month, $175 of this is for the income protection cover and $75 is for the personal injury cover.
- Dee can claim $175 a month for the insurance policy. The remaining $75 is not deductible, because it is capital in nature.
Example: when professional indemnity insurance is not deductible
- Ezra is required to have professional indemnity insurance in his role as a lawyer. As part of his salary package, his employer has agreed to pay his insurance each year he is employed at the firm.
- As Ezra didn't incur the expense he can't claim a deduction.
Laundry and maintenance
- protective (for example, a hi-vis jacket)
- occupation specific and not a conventional, everyday piece of clothing such as a business suit
- 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: laundering a deductible compulsory uniform
- Angela is a lawyer in a legal firm. Her employer requires that she buys shirts with the company logo to be worn at work. She is also required to comply with dress standards and wear smart black pants or a skirt.
- Angela can claim a deduction for buying and laundering her work shirts as the logo makes them unique and distinctive to the organisation where she works.
- Angela can't claim a deduction for her work pants and skirts even though she only wears them to work. Black pants and skirts without a logo or other distinctive feature are not unique to the organisation.
- Angela works for 40 weeks of the income year and washes her shirts twice a week in a mixed load with other clothes. As Angela washes her uniform in a mixed load she can claim 50 cents per load of laundry where her uniform is included in the wash.
- Angela calculates her laundry claim as follows:
- 2 × 40 weeks × $0.50 per load = $40
Example: conventional clothing not deductible
- Gavin is a solicitor in a law firm. As part of his work duties, Gavin meets with clients and attends court hearings. Gavin is expected to maintain a professional appearance, so he buys business shirts and suits that he only wears to work.
- Even though Gavin wears these items to work, he can't claim a deduction for the cost of buying or laundering of the shirts and suits he buys, as they are conventional clothes and not occupation specific, protective or a uniform.
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 a deduction 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.
Example: buying food at work not deductible
- Scarlett is a solicitor and works evenings drafting documents and conducting legal research. During her shift, Scarlett gets a 30 minute break. While she is on her break, she buys dinner and some water and peanuts to snack on throughout the rest of her shift.
- Scarlett can't claim a deduction for the snacks or evening meal. The cost of the food and drink she buys is private and has no relevant connection to her employment activities.
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 and other news services, magazines and professional publications 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.
Example: professional publication deductible
- Tania is an employee taxation lawyer in a large company. Tania subscribes to the  Taxation in Australia  journal to keep up to date with changes.
- Tania can claim a deduction for the cost of subscribing to the journal. The content of the publication is specific to Tania's employment and there is a direct connection between her work duties and the publication.
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
- Lawyer expenses A–F
- Lawyer expenses P–S
- Lawyer expenses T–W
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 parks in the secure parking centre next to the legal firm where he works.
- Once a month Spencer drives his car to a training facility to complete mandatory training, required for his role as a solicitor. He pays for parking and isn't reimbursed by his employer.
- Spencer can't claim the cost he incurs parking at his regular place of work. However, he 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 the apportionment of phone expenses
- Lily uses her mobile phone for work purposes. She is on a set plan of $49 a month.
- Lily receives a monthly itemised account from her phone provider including details of the individual calls she has made.
- Lily prints out her account once a year and highlights the work-related calls she made. She notes on her account for the first month about who she is phoning for work and privately - for example her employer or parents.
- Of the 200 phone calls Lily makes in a 4-week period, 30 phone calls (15%) are for work. She applies that percentage to her monthly plan amount ($49 a month).
- Lily calculates her phone calls for work purposes as follows:
- Total work phone calls ÷ total number of phone calls = work use percentage for phone calls
- 30 ÷ 200 = 0.15 (that is 15%)
- Lily can claim 15% of the total bill of $49 for each month for work purposes
- $49 × 0.15 = $7.35
- Lily worked for 38 weeks of the year (8.8 months), so she calculates her work-related mobile phone expense deduction as follows:
- 8.8 months × $7.35 = $65
Example: work and private use
- Audrey uses her computer and personal internet account at home to access her work emails and do research for her cases. She also uses her computer and the internet for private purposes.
- Audrey's internet use diary showed 10% of her internet time was for work-related activities and 90% was for private use. As her internet service provider charge for the year was $1,200 she can claim:
- $1,200 × 0.10 = $120 as work-related internet use
- If anyone else was accessing the internet connection, Audrey needs to reduce her claim to account for their use.
Professional library
- You can claim a deduction for the decline in value of a professional library over its effective life.
- Reference books can only be included in your professional library if the contents of the book are directly relevant to your employment duties. For example, if you are a family law solicitor, a reference book on divorce settlements and child custody would be relevant to your duties.
- If the reference book cost $300 or less , you can claim an immediate deduction for the full cost of the book in the year that it was purchased.
- You can't add textbooks you buy and claim as self-education expenses to your professional library.
Example: claiming decline in value of an item that cost more than $300
- Marie is an in-house lawyer. She buys a legal book costing $350 to add to her professional library.
- Marie can’t claim a deduction for the full cost of the book. This is because the total cost to be added to her professional library is more than $300. Instead, she must claim the decline in value of the book over the effective life of her professional library.
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 a lawyer in Sydney. She is temporarily transferred to a position in the Melbourne office 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 your work-related use.
Self-education expenses
- maintains or improves the skills and knowledge you need for your current duties - for example, self-education and training courses you attend to meet your continued professional development (CPD) points
- 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.
- travel between your home and the place of education and then back home
- the first leg of the trip   when you travel from home to the place of education and then on to work
- when you travel from work to a place of education and then home
- travel between work and the place of education and then back to work.
- 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: maintains or improves specific skills or knowledge
- Beryl is a solicitor at a large company. She enrols in an online course on effective client interviewing. The skills are required as part of the duties she performs at work.
- The course deepens her knowledge on interview skills and communications issues and directly ties into the work she does from day to day.
- Beryl can claim a deduction for the cost of the course.
Example: improves specific skills or knowledge
- Dean is a qualified legal practitioner in commercial law. He wants to improve his knowledge and skills and has decided to complete a Masters of Commercial Law.
- Dean can claim a deduction for the course and associated expenses as the course enables Dean to maintain or improve the skills and knowledge specific to his current income-producing activities.
Example: self-education you can't claim
- Jamie is a lawyer in a small firm. Jamie decides that he'd prefer to teach law to high school students, so has decided to return to university to complete a teaching degree. While studying to become a high school teacher, Jamie continues working at the law firm part time.
- When he completes the degree, although he will be employed as a law teacher, his job will have changed significantly.
- Jamie can’t claim a deduction for his self-education expenses as the degree will allow him to obtain a new job. Although he will be teaching law, there isn't a sufficient connection with his present employment activities.
Example: education doesn't maintain or improve skills for current role
- Christine holds a Bachelor of Law and has been employed in a law firm for 2 years as a legal clerk. Christine decides to further her career and complete a Practical Legal Training program to be admitted as a lawyer.
- Christine can't claim a deduction for the expenses she incurs to complete the program as it doesn't directly relate to her current employment as a legal clerk.
Example: no sufficient connection with current role
- Sam is a practising solicitor at a Melbourne law firm. Her employer advises they want her to take on some accounting duties in the future, so Sam completes a Diploma of Accounting.
- Sam can't claim a deduction for the self-education expenses as there isn't a sufficient connection with her current employment activities as a solicitor.
Seminars, conferences and training courses
- You can claim a deduction for the cost of seminars, conferences and training courses that relate to your work as a lawyer.
- 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: deductible seminar
- Timothy is a practising lawyer and a member of a professional law association. Timothy decides to attend a seminar hosted by the association in order to keep up with new legislative changes.
- Timothy can claim a deduction for the seminar fees.
Example: course not deductible
- Jenny is a lawyer in a legal firm. She has been struggling to keep up with her work commitments and becomes stressed. Jenny decides to undertake a time and stress management course.
- Jenny can't claim a deduction as the course doesn't directly relate to maintaining or increasing her knowledge, capabilities or skills needed in her current position.
Stationery
- You can claim a deduction for the cost of logbooks, diaries and pens that you use for work.
- You can't claim a deduction if your employer reimburses you for these expenses.
Supreme Court library fees
- You can claim a deduction for Supreme Court library fees you pay on an annual basis. You can't claim a deduction if you pay Supreme Court library fees only once upon admission to practice.
Suspension from practice
- Lawyer expenses A–F
- Lawyer expenses G–O
- Lawyer 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 attend court.
- You can’t claim a deduction for transport expenses you incur to travel between home and 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: bag for a work laptop
- Marie is a lawyer. Her job requires her to regularly attend meetings with clients. She has to take her work laptop, mobile phone and the client's file with her to the meetings and keep them secure to protect sensitive information. She frequently works from home and sometimes travels directly to a client meeting before heading into the office.
- Marie buys a lockable laptop bag for $565 that she uses to carry her work laptop, mobile phone, chargers and client briefs. She carries her cash and cards, personal mobile phone and other personal items in her handbag.
- Marie can claim a deduction for the decline in value of the lockable laptop bag over its effective life, as her job requires her to transport the laptop, phone, chargers and client briefs. The bag is suitable to carry all of the items.
- Marie can't claim a deduction for the cost of her handbag. It is a private expense.
Example: allowable deduction for decline in value
- Matthew buys a laptop for $1,000 that he solely uses for work purposes. As the laptop costs more than $300, he can claim a deduction for its decline in value over its effective life.
- Matthew keeps a 4-week representative diary to demonstrate the 100% work-related use and a receipt for the laptop.
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 are not required to sleep away from your home overnight in the course of performing your duties, for example if you fly interstate for work and return home the same day
- you choose to sleep near your workplace rather than returning home, for example if you rent accommodation near your workplace and stay there because you live a long way from where you work.
- you were away overnight
- you have spent the money
- the travel directly relates to earning your employment income
- how you work 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: more and less than the reasonable amount for different travel expenses
- Justin is required to go interstate for a court hearing and is away from home for 5 nights. He has received a travel allowance covering the cost of accommodation, meals and incidental expenses. His airfares are paid directly by his employer.
- Justin can claim a deduction for the cost of his accommodation, meals and incidental expenses as he incurs the expenses in the course of performing his employment duties.
- Justin can't claim a deduction for his airfares as he was reimbursed by his employer.
- The total deduction Justin claims for accommodation is more than the reasonable allowance. However, the amount he incurs on meals and incidental expenses is less than the reasonable amount. Justin must get and keep written evidence to support his total claim for all of his accommodation expenses.
- Justin doesn't need to get and keep written evidence for his meal and incidental expenses, but he needs to be able to show how he works out his deduction and that he spent the amounts he has claimed.
Example: allowable deduction less than the reasonable amount without written evidence
- Bobby works for a law firm in Brisbane. He is required by his employer to meet a client in Sydney for 3 days. Bobby’s employer paid for his flights and accommodation in Sydney and provided a travel allowance for his breakfast, lunch and dinner. The travel allowance is shown on his income statement.
- Bobby spends $20 on breakfast, $30 on lunch and $45 on dinner, a total of $95 per day on meals.
- Because Bobby has spent less than the reasonable amount on each of his meals, he can claim a deduction for the $95 per day that he spends. He isn't required to get and keep receipts for his meal expenses.
- Bobby can't claim the cost of his flights and accommodation as he has not incurred these expenses.
Example: work-travel with private component
- Jessie’s employer requires that she travels interstate to Perth to meet with a client. While she is there her employer allows Jessie to extend her stay to explore the city and tourist attractions.
- Jessie has kept the receipts for all of the expenses she incurred during the trip.
- Upon her return, Jessie’s employer reimburses her for the work-related travel costs. This includes her flights, accommodation, meal and any incidental expenses she incurred.
- Jessie can't claim a deduction as she has been reimbursed for all of the costs incurred for the work-related travel by her employer. The expenses Jessie incurred during her extended stay are not deductible as they are private in nature.
Example: deduction claim is less than the reasonable amount
- Josephine works for a personal injury law firm in a regional town. Josephine's employer requires her to travel to their head office for an internal training program. Josephine's employer provides her with an accommodation allowance to cover her accommodation costs while she works away from home for a few days. Josephine doesn't receive an allowance for meals or incidental expenses.
- The amount Josephine claims as a deduction for the accommodation costs she pays is less than the reasonable allowance amount. This means she doesn't have to keep records for her accommodation expenses.
- However, as Josephine does not receive an allowance to cover her meal and incidental expenses, she must keep records and other written evidence to support her deduction for her meals and incidental expenses.
- 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?
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 that you choose.
- 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, 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 - ATO compliance approach
- Lawyer expenses A–F
- Lawyer expenses G–O
- Lawyer expenses P–S
- Income and allowances
- Record keeping for work expenses
✅ Deduction Checklist for Lawyers
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 lawyers claims. Avoid these common errors and know what triggers extra scrutiny.
❌ Common Mistakes
Not claiming practising certificate renewal
Fix: Your annual practising certificate fee is fully deductible — it's a condition of your employment.
Missing CPD course expenses
Fix: Mandatory CPD hours cost money. Claim course fees, travel to seminars, and related materials.
Forgetting law library and research subscriptions
Fix: LexisNexis, Westlaw, and other research tools paid personally are deductible.
🔍 ATO Audit Flags
Large entertainment claims disguised as client development
Client meals and entertainment are generally NOT deductible for employees. Only self-employed lawyers with FBT obligations can claim these.
Self-education expenses for unrelated study
An MBA may be deductible if it directly relates to your current role, but a cooking course isn't.
Data sourced from the Australian Taxation Office — Lawyers Guide. Last updated: 2026-03-14.