Tax Deductions for Retail Industry Workers
Retail workers often don't realise they can claim — but if you have a branded uniform, buy your own shoes for work, or do any training, those costs are deductible.
This guide covers 26 deduction categories with 202+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
💰 Real-World Example
Jordan: Jordan works at a clothing store and wears a branded uniform. He claimed uniform laundry ($100), black work shoes ($90), and a first aid course his employer required but didn't pay for ($120).
Result: ~$80 back on a $45k salary
Illustrative example only. Your situation may differ.
Deduction Categories
26
Specific Items
202
Income Types
0
Work-Related Deductions (26)
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 an employee in the retail industry 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, steel cap boots
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, working in the cold
- 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
- These allowances don't help you pay for deductible work-related expenses
- An amount for certain expenses
- Overtime meal allowance
- If you incur deductible expenses
- An amount for special skills
- A first aid certificate
- Conchita is a supermarket employee. When Conchita works in the dairy section of the supermarket she receives an allowance of 47c per hour from her employer.
- At the end of the income year, the total allowance is shown on her income statement. Conchita must declare the allowance as income in her tax return.
- Conchita can't claim a deduction. The allowance compensates her for working in unpleasant conditions. It is not to help Conchita pay for any work-related expenses she might incur.
- Saul is a sales assistant at an electrical goods store. His employer requires him to wear a uniform consisting of a shirt with the company's name and logo embroidered on the pocket, black trousers and black shoes. The shirts are provided to Saul by his employer but he has to buy his trousers and shoes.
- As Saul is responsible for laundering his uniform, Saul's employer pays him a laundry allowance. The allowance is shown on his income statement at the end of the income year.
- Saul must include the laundry allowance as income in his tax return.
- Saul can claim a deduction for the cost of laundering his uniform shirt. Saul can't claim a deduction for the cost of laundering his black pants as they are conventional everyday clothing.
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.
- 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.
- between separate jobs on the same day (provided neither of the workplaces is your home)– for example, travelling from your first job as a retail assistant directly to your second job as a waiter
- to and from an alternative workplace for the same employer on the same day – for example, driving between separate retail stores for the same employer
- from home directly to an alternative workplace – for example, travelling from home to conference centre to attend a work-related seminar.
- 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: travelling between different jobs on the same day
- Olivia works part-time as a retail assistant at her local supermarket and as a waitress at a restaurant. On Mondays she completes her retail shift before driving directly to the restaurant to commence her waitressing shift.
- Olivia can claim a deduction for the travel between one workplace (supermarket) to the other (restaurant). However, she can't claim a deduction for the travel between her home and the workplaces.
- Olivia uses the myDeductions tool in the ATO app to record her trips in the digital logbook. This gives her an accurate record of the kilometres she travels in the financial year. She uploads these records to her tax return when she is ready to lodge.
Example: private travel to work
- Kyon is a store manager. He drives to and from work each day. The cost of his travel is not deductible as it is a private expense. The expense is incurred to put Kyon in the position to earn his employment income.
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 with protective features or functions you wear to protect you from specific risks of injury or illness at work. For example, steel-capped boots, clothing for working in extreme temperatures, or aprons 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 is 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 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
- Matt works as a sales assistant in a clothing store. His employer requires him to wear clothes available in the store. Matt earns his income mostly from the activity of selling clothes.
- Although he must wear clothing in accordance with his employer's requirements, this isn't sufficient to make the clothing deductible. Matt can't claim a deduction as the clothes are of a conventional nature and not part of a compulsory uniform.
Example: conventional clothes worn with a uniform
- Rick works at a supermarket. He is required to buy and wear a shirt with the supermarket's logo embroidered on it. The employee guidelines include a requirement to wear black pants and closed black shoes, but don't specify any other qualities of those items.
- Rick can claim a deduction for the cost of the shirts as they are a compulsory uniform, but he can't claim the cost of his pants or shoes. Even though his employer requires him to wear a specific colour, they aren't distinctive enough to make them part of his uniform. These are still conventional clothes.
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 you can't claim
- Rachael has just started working as a retail sales assistant with a makeup company. Her company has organised a social breakfast for all new employees to socialise and network with colleagues. Rachael pays for her transport costs to the breakfast, as well as food and drinks at the breakfast and is not reimbursed by her employer.
- Rachael can’t claim a deduction for the cost of attending the breakfast.
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. For example, a fine you receive for speeding on your way to work.
First aid courses
- a designated first aid person
- need to complete a first aid training course to assist in emergency work situations.
- Retail industry expenses G–O
- Retail industry expenses P–S
- Retail industry 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 as 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 within the retail industry. Protective glasses include anti-glare or photochromatic glasses, sunglasses, safety glasses or goggles.
- You only claim a deduction for the work-related use of the item.
Grooming expenses
- you receive an allowance for grooming
- your employer expects 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 private 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: laundry expenses
- Jelani receives a uniform from her employer. She washes, dries and irons her uniforms as their own load of washing twice a week. Jelani works 48 weeks during the year. Her claim of $96 for laundry expenses is worked out as follows:
- Number of claimable laundry loads per week × number of weeks worked = total number of claimable laundry loads
- 2 × 48 weeks = 96
- Total number of claimable laundry loads × reasonable cost per load = total claim amount
- 96 × $1 = $96
- As her total claim for laundry expenses is under $150, Jelani isn't required to keep written evidence of her laundry expenses. However, if asked, she will still be required to explain how she calculated her claim.
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.
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 the reasonable amount, you don't have to get and keep receipts
- more than the reasonable amount, you must get and keep receipts for all your expenses.
- you spent the money
- how you work out your claim.
Example: deduction for overtime meal
- Retail industry expenses A–F
- Retail industry expenses P–S
- Retail industry 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. This is a private expense.
- You can claim a deduction for parking fees and tolls you incur on work-related trips.
Example: parking fees not deductible
- Katie works as a sales assistant at a makeup store. She usually parks in the shopping centre and pays $15 per day to park close to work.
- Katie can't claim a deduction for parking at her regular place of work.
Phone, data and internet expenses
- provides you with a phone for work and pays for the usage
- reimburses you for the costs you incur.
- Mobile phone, mobile internet and other devices
- Home phone and internet expenses
Example: calculating phone expenses
- George is the manager of a hardware store and uses his mobile phone to receive and make calls to his staff and his area manager about roster changes and leave. He's on a set plan of $49 each month.
- He receives an itemised account from his provider monthly, that includes details of his individual phone calls. At least once a year, George prints his account and highlights his work-related phone calls. He also notes on the account who he has phoned – for example his staff members or his area manager.
- At the end of the income year, George works out he has made 300 phone calls and that 10% of his phone call costs are work-related. He applies that percentage to his monthly plan amount ($49 a month).
- George calculates his phone calls for work purposes as follows:
- Total work phone calls ÷ total number of phone calls = work use percentage for phone calls
- 30 ÷ 300 = 0.10 (that is 10%)
- George can claim 10% of the total bill of $49 for each month for work purposes:
- $49 × 0.10 = $4.90
- George worked for 46 weeks of the year (10.6 months), so he calculates his work-related mobile phone expense deduction as follows:
- 10.6 months × $4.90 = $51.94
Example: work and personal internet usage
- Mary uses her computer and personal internet at home if she needs to rearrange her shifts or do some online training. Mary also uses her computer and the internet for private purposes.
- Mary keeps a diary which shows 10% of her internet usage was for work-related activities and 90% was for private use. Her internet bill totalled $1,200 for the year. Mary can claim:
- $1,200 × 0.10 = $120 as work-related internet use
- If anyone else was accessing the internet connection, Mary needs to reduce her claim to account for their use.
Protective items and equipment
- to protect you from the real and likely risk of injury or illness in your work environment or while performing your work duties – for example, working in close proximity to customers
- in direct connection to earning your employment income.
- supplies the protective items
- pays for the protective items
- reimburses you for the costs you incur to buy protective items.
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: education not related to current employment
- Jane is a shop assistant who would like to go into business for herself. She is doing a part-time course in Business Administration.
- As the course isn't related to her current employment, she can't claim a deduction.
Example: course related to current employment
- Billy is working as a sales assistant in a clothing outlet. Billy enrols in a Certificate III in Retail which focuses on interpersonal skills related to engaging with customers, selling products and handling customer complaints and selling.
- As the course will improve the skills and knowledge he requires to undertake his duties as a sales assistant, Billy can claim a deduction for the costs he incurs to complete the course.
Seminars, conferences and training courses
- You can claim a deduction for the cost of seminars, conferences and training courses that relate to your work in the retail industry.
- 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: deduction for attending a conference
- Reeta is a retail assistant at a popular clothing franchise. She attends a conference for her company to learn about the new stock they are receiving.
- Reeta can claim a deduction for the cost of attending the conference as this is directly related to her work.
Example: work-related seminar and personal activities
- Retail industry expenses A–F
- Retail industry expenses G–O
- Retail industry 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 you 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 work, these are private expenses.
- You can't claim a deduction if your employer reimburses you for these expenses.
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 on your income statement or payment summary
- the travel allowance doesn't exceed the Commissioner of Taxation'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 receive a travel allowance from your employer for the expenses
- your deduction is less than the Commissioner’s reasonable amount.
Example: travel expense with allowance
- Lorena is a manager at a regional women's wear franchise. One a month she travels to Perth to visit the head office for a meeting. Her employer pays for her flights and accommodation and provides a travel allowance which covers her meal expenses. If Lorena spends less than the reasonable amount on each of her meals she isn't required to keep receipts. She can claim a deduction for the amount she has actually incurred the meal expense provided she has reported the allowance in her tax return.
- Lorena can't claim a deduction for the cost of her flights and accommodation as these are paid for by her employer.
Example: travel expense without allowance
- George works as a retail assistant. His manager requests that he flies to Sydney to meet with the regional manager. George pays for his flights, accommodation and meals himself. He does not receive a travel allowance from his employer.
- George can claim a deduction for the expenses he incurs for his flights, accommodation and meals.
- As George does not receive a travel allowance, he is required to get and keep written evidence of all his expenses for accommodation and meals. George will also need to keep written evidence of his expenses for the flights.
- 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.
Vaccinations
- You can't claim a deduction for the cost of vaccinations such as the flu shot even if you're employer requires you to have them for work. The expense relates to your personal health and is a private expense.
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
- Retail industry expenses A–F
- Retail industry expenses G–O
- Retail industry expenses P–S
- Income and allowances
- Record keeping for work expenses
✅ Deduction Checklist for Retail Industry Workers
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 retail industry workers claims. Avoid these common errors and know what triggers extra scrutiny.
❌ Common Mistakes
Claiming regular clothing worn at work
Fix: Plain clothing (black pants, white shirt) is NOT deductible even if your employer requires it. Only branded uniforms qualify.
Not claiming union fees (SDA, RAFFWU)
Fix: If you're a union member, your fees are fully deductible.
Forgetting to claim laundry for branded uniforms
Fix: You can claim $1 per load (or $0.50 if mixed with other clothes) for washing compulsory uniforms.
🔍 ATO Audit Flags
Clothing claims without branded/logo requirement
ATO auditors will ask for photos or employer policy documents proving the uniform requirement.
WFH claims for retail workers
Unless you genuinely do admin/rostering from home, WFH claims for retail don't make sense and trigger review.
Data sourced from the Australian Taxation Office — Retail Industry Workers Guide. Last updated: 2026-03-14.