Tax Deductions for Sales and Marketing Managers
If you're working as a sales and marketing managers, there are 25 categories of work-related expenses you may be able to claim. Below you'll find every deduction the ATO lists for your occupation — in plain English.
This guide covers 25 deduction categories with 238+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
Deduction Categories
25
Specific Items
238
Income Types
0
Work-Related Deductions (25)
Amounts you do and don't include
- salary and wages, including cash or bonus payments
- compensation and insurance payments – for example, payments made under an income protection insurance policy to replace salary and wages.
- You must include all the income you receive during the income year as a sales and marketing manager 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 and wages, including commissions and allowances for the income year.
Allowances
- to help you pay for a work expense – for example, vehicle allowance
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, remote area allowance
- as an amount for having special duties, skills or qualifications – for example, first aid qualifications.
Allowances not on your income statement or payment summary
- don't include it as income in your tax return
- can't claim any deductions for the work expenses the allowance covers.
- include the allowance as income in your tax return
- include a claim for the work expenses you incur in your tax return
- must have records of your expenses.
Allowances and claiming a deduction
- directly from her home or her office to the various clothing stores in the chain
- to a training venue to attend training.
- 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
- Remote area allowance
- These allowances don't help you pay for deductible work-related expenses
- An amount for certain expenses
- If you incur deductible expenses
- An amount for special skills
- A first aid certificate
- Emerson is a sales manager for a pharmaceutical company. When he has to travel away from his home overnight to a regional area, he is usually only away for the period of his normal working week, Monday to Friday. However, when he goes to one particularly large regional area, he is away from home for 2 weeks.
- When Emerson takes these trips, his employer pays him a weekend allowance to compensate him for being away over the weekend.
- At the end of the income year, the weekend allowance is shown on Emerson's income statement.
- Emerson must declare the weekend allowance as income on his tax return.
- Emerson can't claim a deduction. The allowance compensates him for an unpleasant aspect of his work. It is not to cover work-related expenses that Emerson might incur.
- Bronwyn is a sales and marketing manager for a clothing chain. During the income year, Bronwyn uses her own vehicle to travel:
- Bronwyn's employer pays her 80c per kilometre when she uses her car for work purposes.
- At the end of the year, her income statement shows she was paid an allowance of $3,384 for using her car for work (4,230 kms × $0.80 = $3,384).
- Bronwyn must include the car allowance as income in her tax return.
- Bronwyn can claim a deduction for the cost of using her car for work purposes. She can't claim the amount of the allowance she receives. Bronwyn must calculate the amount of the deduction using the records she keeps whenever she uses her own car for work purposes.
- In the past year Bronwyn has kept a record of the work trips she did using her own car, but she doesn't keep a logbook. Her records show she travelled 4,230 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 88 cents per kilometre.
- Bronwyn can claim a deduction of $3,722.40. Bronwyn calculates her deduction as 4,230 kms × $0.88 = $3,722.40
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 normal 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 your first job in sales to your second job as a waiter
- to and from an alternative workplace for the same employer on the same day – for example, travelling from head office to a branch in the suburbs
- from home directly to an alternative workplace – for example, travelling from home to meet a client at their business premises which is not your regular work location.
- 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: bulky equipment
- Sue is a sales manager who uses a laptop computer in the office and when visiting clients. She carries it 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.
Example: travelling between workplaces
- Nadeem is a sales manager who travels from his normal workplace to head office to attend a meeting. After the meeting, he travels directly back to his normal workplace and then home.
- Nadeem can claim the cost of each journey between his workplace and head office as a deduction as the trips are for work purposes.
Example: shifting places of employment
- between her home and her clients' premises
- between clients' premises
- between her clients' premises and the office
- between her home and the office.
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 that you wear to protect yourself from specific risks of injury or illness at work. For example, steel-capped boots, hi-vis clothing, or aprons or smocks to 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 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 a logo
- distinctive items with the employer's logo
- compulsory for him to wear at work.
- Mike's employer requires him to wear shirts they provide when he is at work. Each shirt is embroidered with his employer's logo. Mike is also required to wear black pants and black shoes.
- Mike can't claim the cost to buy, repair or replace his black pants or shoes as they are conventional items.
- Mike can't claim the cost of buying the embroidered shirts as they are provided by his employer.
- However, Mike can claim a deduction for the cost of washing the embroidered shirts as they are:
Example: no deduction for conventional clothing
- Lena wears a business suit to work. It’s not 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 these items because they are private in nature, even if her employer tells her to wear them.
Example: deduction for protective clothing
- Danijela is a sales representative for a company that sells manufacturing equipment. When she visits some of her clients on site, she is required to wear a high vis vest over her clothing for safety purposes.
- Danijela can claim a deduction for the cost of buying a hi-vis vest to wear on certain site visits. The hi-vis vest protects her from the risk of being injured while on those sites performing her employment duties.
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 you can't claim
- Rachael attends a social breakfast organised by a professional association. These breakfasts are held every other monthto encourage women in sales and marketing to network with colleagues.
- Rachael can’t claim a deduction for the cost of attending the breakfast even though her employer encourages staff to attend.
First aid courses
- a designated first aid person
- need to complete a first aid training course to assist in emergency work situations.
- Sales and marketing industry expenses G–O
- Sales and marketing industry expenses P–S
- Sales and marketing 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. These are private expenses.
- You can claim a deduction for the cost of protective glasses if you wear them to reduce the real and likely risk of illness or injury while working. Protective glasses include anti-glare or photochromatic glasses, sunglasses, safety glasses or goggles.
- You can only claim a deduction for the work-related use of the item.
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 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: uniform and conventional clothing laundry expenses
- Nick is a sales manager. His employer requires that he buys shirts with the company logo to be worn at work. He is also required to comply with dress standards and wear smart black pants to work.
- Nick can claim a deduction for cost of buying and laundering his work shirts as the logo makes them unique and distinctive to the organisation.
- Nick can't claim a deduction for his work pants even though he is required to wear them and he only wears them to work. Black pants without a logo or other feature are conventional clothing.
- Nick works for 40 weeks of the financial year and washes his shirts twice a week in a mixed load of laundry.
- Nick calculates his laundry claim as follows:
- Number of claimable laundry loads per week × number of weeks worked = total number of claimable laundry loads
- 2 × 40 weeks = 80
- Total number of claimable laundry loads × reasonable cost per load = total claim amount
- 80 weeks × $0.50 per load = $40
Example: no deduction allowable for business attire
- Lachlan is a sales and marketing manager. His employer has a strict dress code requiring all staff to wear professional business attire to work. Lachlan purchases business shirts and suits that he only wears to work.
- Although Lachlan's employer has a strict dress code for staff, Lachlan can't claim a deduction for buying and washing of these items 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.
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 your expenses.
Example: deduction for overtime meal
- Sales and marketing industry expenses A–F
- Sales and marketing industry expenses P–S
- Sales and marketing 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 work. These are private expenses.
- You can claim a deduction for parking fees and tolls you incur on work-related trips.
Example: parking fees
- Spencer drives his own car to work each day and pays to park in the secure parking centre next to his office.
- If Spencer needs to visit a client, he drives his car from the office to that client's premises. When he visits a particular client, Spencer travels on a toll road and pays for parking near the client's premises. The tolls and parking fees aren't reimbursed by Spencer's employer.
- Spencer can't claim the cost he incurs parking in the car park next to his office as this is a private expense incurred to attend his regular place of work. However, Spencer is able to claim the tolls and parking fees he incurs when he visits his client as the expenses are incurred on a work-related trip.
Phone, data and internet expenses
- provides you with a phone for work and pays for your usage
- reimburses you for the costs you incur.
- Mobile phone, mobile internet and other devices
- Home phone and internet expenses
Example: calculating phone expenses
- Fergus uses his mobile phone for work purposes. He is on a set plan of $49 a month.
- He receives an itemised account from his phone provider each month including details of the phone calls he has made.
- At least once a year, Fergus prints out his account and highlights the work-related calls he made. He makes notes on his account for the first month about who he is calling for work such as his manager, suppliers and his clients.
- Out of the 300 phone calls he has made in a 4-week period, Fergus works out that 120 (40%) of the phone calls are for work. He applies that percentage to his monthly plan amount ($49 a month).
- Fergus calculates his phone calls for work purposes as follows:
- Total work phone calls ÷ total number of phone calls = work use percentage for phone calls
- 120 ÷ 300 = 0.40 (that is 40%)
- Fergus can claim 40% of the total bill of $49 for each month for work purposes, calculated as:
- $49 × 0.40 = $19.60
- As Fergus was only at work for 46 weeks of the year (10.6 months), he works out his work-related mobile phone expense deduction as follows:
- 10.6 months × $19.60 = $207.76
Example: work and private use
- Chanda uses her computer and personal internet account at home to access her work emails, fill in reports and manage her appointments. Chanda also uses her computer and the internet for private purposes.
- Chanda'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, Chanda needs to reduce her claim to account for their use.
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
- Brittany is a sales manager in Sydney. She is temporarily transferred to a position in Newcastle for 2 years by her employer.
- Brittany 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.
- For example, if you use your laptop 50% for work purposes and 50% for private purposes, you can only claim 50% of the cost of any repairs to your laptop.
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 Loan (AASL)
- Student Financial Supplement Scheme (SFSS)
- Student Start-up Loan (SSL).
Example: self-education expenses
- Computer salesperson Kieran takes 6 months leave without pay to undertake a business administration course. His employer has agreed that if he completes the course successfully, he'll be promoted to assistant manager.
- As the course is likely to lead to an increase in Kieran’s income from his current job, he can claim a deduction for the costs he incurs to do the course.
Example: course not sufficiently connected to work
- Brianna, a sales manager, decided to attend a 4 week course in stress management to help her deal with a family situation. She attended the course after hours and paid for it herself.
- Brianna can't claim a deduction for the cost of the course because it wasn't designed to maintain or increase the skill or specific knowledge required in her current position. The expenses are private.
Example: course not sufficiently connected to work, education beyond required skills
- Jackie, in her fourth year of a marketing degree, has a job as a part-time sales assistant in a pharmacy. The course and job are generally related, but the high-level professional skills Jackie obtains from her course are well beyond the skills required for the job.
- She can't claim a deduction for the cost of her course because it isn't sufficiently connected to the work she does as a sales assistant.
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 sales and marketing.
- 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, then you can only claim the work-related portion.
Example: reimbursed expenses
- Andrew is a sales and marketing manager for a car retailer. His employer requires him to attend an annual manufacturer’s conference to learn the features of new models. His employer pays for the accommodation, flights and conference fees for Andrew to attend.
- Although the conference is work-related, Andrew can't claim a deduction for these costs as he didn't incur the expenses.
Example: work-related travel with private component
- Kristen is a sales and marketing manager for an Australian swimwear brand. She travels to the USA and Europe each year, attending fashion shows to see the latest trends and purchase materials. Kristen often extends her trips to undertake sightseeing and visit friends.
- Her employer pays for the accommodation, flights and entry fees to work-related events. As Kristen’s trips are often weeks at a time, she needs to keep records of her accommodation expenses and a travel diary.
- Kristen can claim a deduction for any meal and incidental expenses she incurs while working.
- Kristen can't claim a deduction for any expenses related to her extended stays as they are private in nature.
Example: attendance at work-related trade fair deductible
- Sales and marketing industry expenses A–F
- Sales and marketing industry expenses G–O
- Sales and marketing industry 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: apportioned deduction for decline in value
- Alan is employed as a sales manager by a technology company . He regularly works from home and buys a laptop for $1,200 to use for work purposes.
- Alan also uses the laptop to stream movies and television shows as well as buy personal goods online. Based on his records of use, Alan calculates his work-related use of the laptop as 60%.
- Alan can claim a deduction for the decline in value of the laptop over its effective life using either the prime cost method or the diminishing value method (DVM). He can choose whichever method he prefers. However, once the choice is made it can't be changed in future years.
- As Alan also uses the laptop for private purposes, he has to reduce his deduction to account for that use..
- Alan chooses to use the DVM. If the laptop's decline in value is $600 for the first year of its effective life, Alan can claim a deduction of $360, that is, 60% of the laptop's decline in value.
Example: equipment costing $300 or less
- Jaclyn is a Sales Manager for a paper company. Her job requires her to regularly attend meetings with clients. She buys a bag for $285 to carry her work laptop, work mobile and presentation handouts to these meetings. Jaclyn also carries her cash, cards, personal mobile and other personal items in the same bag.
- Jaclyn can claim a deduction for the work-related use of the bag. Jaclyn applies a reasonable basis and determines that the work-related use is 60%.
- Jaclyn can claim a deduction for the full value of the bag as it is $300 or less but needs to reduce her claim to 60% of the purchase price.
- Jaclyn's deduction is $171 ($285 × 0.60 = $171).
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'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: reasonable allowance amount
- it's not shown on his income statement
- it's less than the reasonable allowance amount
- he spends it all to cover his travel expenses.
Union and professional association fees
- You can claim a deduction for union and professional association fees you pay. You can use your income statement or payment summary as evidence of the amount you pay if it's shown on there.
Working from home expenses
- use one of the methods set out by us to calculate your deduction
- keep the records required for the method you choose.
- 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 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
- Sales and marketing industry expenses A–F
- Sales and marketing industry expenses G–O
- Sales and marketing industry expenses P–S
- Income and allowances
- Record keeping for work expenses
✅ Deduction Checklist for Sales and Marketing Managers
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 sales and marketing managers claims. Avoid these common errors and know what triggers extra scrutiny.
❌ Common Mistakes
Claiming expenses reimbursed by your employer
Fix: If your employer already paid you back, you can't also claim a deduction. Check your pay slips.
Not keeping receipts for claims over $300
Fix: You must have records for all deductions over $300. Bank/credit card statements alone aren't enough — keep the actual receipts.
Claiming private expenses as work-related
Fix: Only expenses directly related to earning your income are deductible. Personal items worn or used at work don't count.
🔍 ATO Audit Flags
Deductions significantly above average for your occupation
The ATO publishes benchmarks. If your claims are well above the norm, expect a 'please explain'.
Claiming the same expense twice (e.g., WFH and office supplies)
The ATO's data matching catches double-dips. Make sure each expense is claimed once.
Data sourced from the Australian Taxation Office — Sales and Marketing Managers Guide. Last updated: 2026-03-14.