Tax Deductions for Real Estate Employees
Real estate agents spend big on phones, cars, and marketing. The good news? Most of your work-related expenses are deductible — just keep those receipts.
This guide covers 33 deduction categories with 269+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
💰 Real-World Example
Marcus: Marcus is a sales agent who drives to open homes and client meetings. He claimed car expenses via logbook (8,000 km work use = $4,800), mobile phone (70% work use = $840), and REI membership ($350).
Result: ~$2,100 back on a $95k salary
Illustrative example only. Your situation may differ.
Deduction Categories
33
Specific Items
269
Income Types
0
Work-Related Deductions (33)
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 employee in the real estate industry 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 and wages and allowances for the income year.
Allowances
- to help you pay for a work expense – for example, mobile phone allowance
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, working in extreme weather conditions
- 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
- Working in extreme weather conditions
- These allowances don't help you pay for deductible work-related expenses
- An amount for certain expenses
- Mobile phone allowance
- If you incur deductible expenses
- An amount for special skills
- A first aid certificate
- Health and safety representative
- Mark is a real estate agent and is the health and safety representative for his office. Mark's employer pays him an allowance for each week during the 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, his employer reports the allowance on his income statement.
- Mark must include the amount of the allowance in his tax return, but he can't claim a deduction for any expenses against the allowance because he has not incurred any deductible expenses.
- The allowance compensates Mark for his special skills and additional duties. It is not to cover any expenses he might incur.
- Ronaldo is a property manager. His employer requires him to wear a compulsory uniform which he must buy, launder and repair.
- Ronaldo's employer pays him a uniform allowance which is shown on his income statement. Ronaldo regularly washes his uniform and in winter, he has his jacket dry cleaned.
- Ronaldo must declare the uniform allowance as income in his tax return.
- Ronaldo can claim a deduction for cost of buying, laundering and dry cleaning his compulsory uniform.
Reimbursements
- you don't include the reimbursement as income in your tax return
- you can't claim a deduction for them.
- If your employer pays you the exact amount for expenses you incur (either before or after you incur them), the payment is a reimbursement .
- A reimbursement isn't an allowance.
- If your employer reimburses you for expenses you incur:
Example: reimbursement of mobile phone expenses
- Deductions for work expenses
- Record keeping for work expenses
- Michelle is a property management agent. Michelle uses her own phone for work purposes. At the end of each month, Michelle highlights the work phone calls on her bill and lodges a reimbursement claim with her employer. Michelle's employer reimburses her for the cost of her work phone calls.
- Michelle doesn't include the amount of the reimbursement as income in her tax return and she can't claim a deduction for the cost of her work-related mobile phone expenses.
- Find out about real estate employees':
Advertising
- You can claim a deduction for the cost of advertising. For example, through newspapers, letterbox drops, signage and bunting.
- You can't claim a deduction for the cost of advertising if you earn your income from a fixed salary and you aren't entitled to earn commission.
Example: advertising expenses paid by client
- Robin is a real estate salesperson. Robin receives a small base salary and earns commission on the properties she sells.
- When Robin is engaged to sell a property, the property is advertised on an internet site and, depending on the property, in the real estate lift out in the Saturday newspaper. Robin's clients always pay for the cost of advertising.
- Robin can't claim a deduction for the advertising because she does not incur the 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 mornings).
- 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 real estate agency office to your second job as an auctioneer with another agency
- to and from an alternative workplace for the same employer on the same day – for example, driving between separate real estate offices or residential open homes for the same employer
- from home directly to an alternative workplace - for example, driving from home to inspect a property instead of going to the office first.
- 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: alternative workplace that isn't a regular workplace
- Trevor is a real estate agent who travels from his normal workplace to his employer's head office to attend a meeting. After the meeting he travels directly home.
- Trevor can claim the cost of the journey from his workplace to head office and from head office directly to his home. The travel between his normal workplace and head office is travel between workplaces.
- The cost of Trevor's travel from head office directly home is deductible because he is travelling from an alternative workplace to his home.
Example: alternative workplace that isn't a regular workplace
- home and different clients' properties
- one client's property and another
- client properties and her normal workplace.
Example: bulky tools – not considered bulky equipment
- Diana is a real estate salesperson who uses a laptop computer in the office and when she visits clients. She carries the computer to and from work in her car.
- As the computer isn't bulky equipment, she can't claim a deduction for her travel costs to and from work based on transporting bulky tools and equipment.
Example: shifting places of work
- meetings with prospective sellers at coffee shops or at their property
- meetings with clients at his employer's office or the client's property to sign contracts or other documents
- his employer's office for meetings
- meetings with prospective buyers at his employer's office or coffee shops
- open homes or inspections at the properties he has for sale.
Car leasing and hire-purchase payments
- The big difference between commercial leasing and hire-purchase is in the handling of tax deductions. With hire-purchase, instead of claiming the whole monthly payment as a tax deduction as you do with a lease, you claim the decline in value of the motor vehicle and any interest charged.
- Hire-purchase – under a commercial hire-purchase agreement you don't become owner of the motor vehicle until all monies owed under the arrangement are paid. However, you can still claim a tax deduction for the decline in value of the motor vehicle as well as the interest component of the loan repayments to the extent that the motor vehicle is used for work-related purposes. That is, interest on the loan payments and decline in value up to the car limit.
- Commercial leasing – If you take out a car lease, the lender agrees to rent the vehicle to you for a set period for an agreed amount. If the vehicle is used entirely for work purposes and not a luxury car, the lease payments are fully tax deductible but you can't claim the decline in value of the car.
- If the vehicle is a luxury car, you can claim a tax deduction for the finance component of the lease payments (interest) but not for the part of the lease payments that represent repayments of principal. You can also claim a deduction for decline in value of the car subject to the car limit.
- If you lease a car under a salary sacrifice novated lease arrangement, you can't claim a deduction for the lease payments as these expenses are incurred by your employer. You also can't claim the decline in value of the car.
Certificate of registration, licences and other certificates
- You can claim a deduction for the cost of renewing a real estate certificate of registration or real estate licence held by you as an employee in respect of your employment.
- You can't claim a deduction for the cost of getting the initial certificate of registration or licence to gain employment.
- You also can't claim a deduction for the cost of getting a police clearance certificate to gain employment as a real estate agent.
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 personal expense, and the expenses have no direct connection to earning your income.
Clothing and uniform expenses (including footwear)
- protective clothing – clothing with protective features and functions you wear to protect you from specific risks of injury or illness at work. For example, steel-capped boots, fire-resistant clothing, or boiler suits that protect conventional clothing. 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 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: compulsory uniform with logo
- distinctive items with the employer's logo
- compulsory for him to wear at work.
- Farhad has to wear shirts his employer provides. Each shirt has his employer's company logo embroidered on it. As part of his uniform, he also has to wear black pants and black shoes.
- He can't claim the cost of buying or maintaining his black pants or shoes as they're conventional clothing.
- Farhad can't claim a deduction for the shirts as his employer provides them to him but he can claim a deduction for the cost of laundering the shirts as they are:
Example: registered non-compulsory uniform
- Lena is a salesperson with a large real estate company. She also works in the reception area for a number of hours each day.
- Although it isn't compulsory, reception staff are encouraged to wear a suit in the company's colours monogrammed with the company logo. The jacket, skirt, pants and shirt are registered by Lena's employer on the Register of Approved Occupational Clothing. Lena buys several of these suit items to wear each day to work.
- Lena can claim a deduction for the cost of buying and maintaining the suit because it is a non-compulsory uniform registered and she wears them at work.
Example: you can’t claim a deduction for the purchase of conventional clothing
- James is a property manager and required to comply with dress standards and wear office attire while at work. James buys several collared shirts and long pants from a department store.
- James can't claim the cost to buy or maintain these items as they are considered conventional clothing and private in nature.
Club membership
- You can't claim a deduction for the cost of recreational club fees. The expenses are private.
Example: Local golf club membership
- Geoff is a real estate salesperson. He is a member of his local golf club and plays there regularly. Geoff enjoys golf and being a member also allows him to meet potential clients. Membership to the golf club costs Geoff $930 annually.
- Geoff can't claim a deduction for his golf club membership fees. The expense is private.
Decorating properties
- You can claim a deduction for the cost of decorating items used at properties, such as flowers, if you're entitled to earn a commission from the sale of the property.
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 Real Estate Institute. These breakfasts are held every other month to encourage new salespeople in the real estate industry to meet socially with colleagues.
- Rachael can't claim a deduction for the cost of attending the breakfast even though her employer encourages staff to attend..
Fines and penalties
- You can't claim a deduction for the cost of any fines or penalties you get when you travel to work, or during work, including parking fines, speeding fines or penalties.
Example: traffic fine not deductible
- Chris is a real estate salesperson. While driving to an open house, Chris runs a red light because he is running late. Chris receives a fine which he pays.
- Chris can't claim a deduction for the fine even though he was travelling for work purposes at the time of the offence.
First aid courses
- a designated first aid person
- need to complete a first aid training course to assist in emergency work situations.
- You can claim a deduction for the cost of first aid training courses if you are both:
- You can’t claim a deduction if your employer pays for or reimburses you for the cost of the course.
Example: course paid for by employer
- Real estate employee expenses G–O
- Real estate employee expenses P–S
- Real estate employee expenses T–W
Gifts
- a Christmas hamper
- a bottle of whisky
- gift vouchers
- a bottle of perfume
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 as these are personal expenses.
- You can claim a deduction for the cost of anti-glare or protective glasses if you wear them to reduce the risk of illness or injury while working as a real estate employee.
- You only claim a deduction for the work-related use of the item.
Grooming expenses
- you receive an allowance for grooming
- your employer expects you to be well groomed when at work.
- You can't claim a deduction for hairdressing, cosmetics, hair and skin care products, even if:
- All grooming expenses and products are personal expenses.
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 deduction for uniform clothing
- Chloe is a real estate agent. Her employer provides and requires staff to wear polo shirts with the company’s name and logo on them. Chloe is also required to wear 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. They are considered conventional clothing.
- Chloe works for 40 weeks of the financial year and washes these items 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
- As her total claim for laundry expenses is under $150, Chloe isn't required to keep evidence of her laundry expenses. However, if asked, she will still be required to explain how she calculated the claim.
Marketing equipment
- You can claim a deduction for the work-related portion of the decline in value of marketing tools and equipment you use to carry out your employment duties, such as cameras used for property photos.
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 personal 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 personal purposes, you can only claim the portion related to your work-related use.
Example: subscription relating to work activities
- Judy is a real estate salesperson who subscribes to the local paper to keep abreast of the properties available for sale and the prices of those properties.
- The real estate section only appears in the Wednesday and Saturday editions of those papers.
- Judy can claim a portion of the cost of the Wednesday and Saturday newspapers.
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 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.
- Real estate employee expenses A–F
- Real estate employee expenses P–S
- Real estate employee 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
- Prudence is a commercial real estate agent and drives her own car to the firm she works at each day and parks in the secure parking centre down the street.
- Following a morning briefing with her team each morning, Prudence often drives her car to other locations to meet clients or show her listings. She often uses toll roads and pays for parking on these trips. Her employer doesn't reimburse her for these costs.
- Prudence can't claim the cost she incurs parking at her regular place of work. However, she can claim tolls and parking costs associated with her trips to meet clients and show her listings.
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
- Sebastian is a real estate salesperson. Sebastian uses his own mobile phone for work purposes. He is on a set plan of $55 a month which includes unlimited calls and texts and 40GB of data.
- He receives an itemised account from his phone provider each month that includes details of his individual phone calls and when he accessed the internet on his phone.
- At least once a year, Sebastian 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 calling for work – for example, the office, his clients and buyers. He also identifies his work-related internet by comparing his bill with his work diary.
- Out of the 300 phone calls he has made in a 4-week period, Sebastian works out that 270 (90%) of the individual phone call expenses billed to him are for work.
- Sebastian calculates his phone calls for work purposes as follows:
- Total work calls ÷ total number of calls = work use percentage for calls
- 270 ÷ 300 = 0.90 (that is 90%)
- Sebastian used 10GB of his allocated data and estimates that 7GB was used for work purposes.
- Data for work purposes:
- Total work use data ÷ total data use = work use percentage for data
- 7GB ÷ 10GB = 0.70 (that is 70%)
- Sebastian takes an average of these to determine his work use percentage:
- [Work use percentage for calls + Work use percentage of data] ÷ 2 = Overall work use percentage.
- [0.90 + 0.70] ÷ 2 = 0.80 (that is 80%)
- Sebastian can claim 80% of the total bill of $55 for each month for work purposes:
- $55 × 0.80 = $44
- Since Sebastian was only at work for 46 weeks of the year (10.6 months), he calculates his work-related mobile phone expense deduction as follows:
- 10.6 months × $44 = $466.40
Example: work and private use
- Sylvette uses her computer and personal internet account at home to access her work emails, research property prices and to manage her appointments and property listings. Sylvette also uses her computer and the internet for private purposes.
- Sylvette's internet use diary showed 40% of her internet time was for work-related activities and 60% was for private use.
- As her internet service provider charge for the year was $1,200 she can claim:
- $1,200 × 0.40 = $480 as work-related internet use
- If anyone else was accessing the internet connection, Sylvette will need to reduce her claim to account for their use.
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 personal 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
- 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 or profession
- 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 not related to current employment
- Deakin is an accredited real estate agent. He is thinking of setting up his own agency at some stage, so he decides to complete a Bachelor of Commerce to improve his general business knowledge.
- Deakin can't claim a deduction for the course and associated expenses as it does not directly relate to his current employment as a real estate agent.
Example: employment related course deductible
- Christine is a property manager. She has predominantly managed long term rentals but she has recently started looking after some of the short term rentals managed by her employer.
- To improve her knowledge of the short term rentals, Christine enrols in a Continuing Professional Development (CPD) course on short term rental accommodation. Christine’s employer doesn't pay for the course or reimburse her for the costs she incurs to attend the course.
- Christine can claim a deduction for the CPD course and associated expenses as the course enables her to maintain or improve the skills and knowledge specific to her current income-producing activities.
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 real estate employee.
- 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: relevant conference
- Jack is a real estate agent. Jack attends the Real Estate Institute QLD summit and pays for flights to Queensland, his accommodation and his meal expenses. Jack's employer pays for his registration fee.
- Jack can't claim a deduction for the registration fee as he did not incur the expense.
- Jack can claim a deduction for the cost of his return flights and his accommodation and meals while he is attending the conference. The conference is related to Jack's work as a real estate agent.
Stationery
- Real estate employee expenses A–F
- Real estate employee expenses G–O
- Real estate employee expenses T–W
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: claiming proportion for decline in value
- Jessica buys a camera for $400 to take photographs of client properties for advertising purposes. Jessica also uses the camera to take family photographs.
- Jessica can claim a deduction for the proportion of the decline in value based on her work use of the camera.
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 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.
Union and professional association fees
- You can claim a deduction for union and professional association fees you pay. You can use your income statement as evidence of the amount you pay if it's shown on there.
Wages
- You can claim a deduction for wages you pay someone to provide you with services and assistance directly relating to your employment activities if you only earn commission income.
- You will need to demonstrate that the arrangement is not a private arrangement and that hiring the person allows you to earn additional income from your employment activities.
Example: deduction for wages
- Claire is a real estate salesperson and works on a commission-only basis. Claire hires Jake on a casual basis as an administration support person. Jake works for 8 hours on a Saturday and 4 hours on a Wednesday and Claire pays him the rate per hour for casuals listed in the relevant Award.
- The 2 days that Jake works, are the days when Claire holds her open houses. Jake assists Claire on these days by taking all the potential buyers' details and showing buyers around the property if Claire is already showing other potential buyers around.
- Due to Claire having more time to spend with serious buyers and being able to send Jake onto the next open home if she is held up with a potential buyer, Claire has increased her sales and her commission since hiring him.
- Claire can claim a deduction for the wages she pays to Jake each week because there is a clear connection with the income she earns from her employment activities.
Example: no deduction for wages
- Pawel is employed as a real estate salesperson and he only receives commission income. He pays his son $100 a week to answer the home phone when he is not around.
- Pawel does not expect his son to be at home at certain times and if he doesn't answer the phone, it will divert to Pawel's mobile. Pawel rarely gives his home phone number out to clients.
- Pawel can't claim a deduction for the amount he pays his son as there is no connection between the expense and his employment activities.
- If you are paying wages to a relative, a deduction is only available to the extent it is no more than a reasonable payment for the service performed. A reasonable payment is the amount the employee would be expected to pay to an unrelated person who had similar skills and experience in the same role.
Example: overpayment of wages
- Verity is an employee real estate agent who works on a commission-only basis. She pays her son $50 an hour to deliver advertising leaflets in the region in which she operates. The market rate for such a service is only $21 per hour.
- Verity can't claim a deduction of $50 per hour for the wages she pays to her son. Verity can only claim a deduction of $21 per hour as wage expenses.
Working from home expenses
- use one of the methods set out by us to calculate your deduction
- keep records required for the method chosen.
- 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.
Example: working from home expenses
- 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
- Real estate employee expenses A–F
- Real estate employee expenses G–O
- Real estate employee expenses P–S
- Income and allowances
- Record keeping for work expenses
✅ Deduction Checklist for Real Estate Employees
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 real estate employees claims. Avoid these common errors and know what triggers extra scrutiny.
❌ Common Mistakes
Not claiming car expenses for property inspections
Fix: Travel between properties and to client meetings is deductible. Keep a logbook if using actual expenses.
Forgetting phone and internet costs for client communication
Fix: Real estate agents use personal phones extensively. Claim the work-use percentage.
Missing marketing material costs
Fix: If you pay for your own business cards, signage, or advertising, it's deductible.
🔍 ATO Audit Flags
Claiming car expenses to a single office
Home-to-office is commuting. Only travel between the office and property listings counts.
Entertainment claims without FBT
Taking clients to dinner is not deductible for employees unless your employer has an FBT arrangement.
Data sourced from the Australian Taxation Office — Real Estate Employees Guide. Last updated: 2026-03-14.