A plain-English guide to claiming tax deductions in Australia, covering the core ATO tests, records, mixed-use expenses, reimbursements and common claim mistakes.
Last reviewed: 22 March 2026
This page is for readers who want the basic claim framework before they dive into a specific occupation guide.
It summarises the broad ATO-style tests that sit behind many work-related and business deduction claims without pretending every occupation follows the exact same pattern.
How to use this page: Use it as a broad overview, then move into the closest occupation guide and the relevant support pages before treating any deduction as settled for your own situation.
Quick answer / overview
- A deduction usually needs a real connection to earning income or running the business, and you generally need to have paid the cost yourself.
- Mixed-use expenses usually need to be split between private and work or business use.
- Records are part of the claim, not an optional extra. If you cannot show how you worked it out, the claim gets weaker fast.
Common deductions people in this topic may be able to review
- Unreimbursed work or business expenses that have a genuine income-producing connection.
- The work-related or business-use share of mixed items such as phones, internet, cars or equipment where records support the split.
- Costs linked to your current work or business activity, depending on the ATO rules for that type of expense.
- Record-keeping or bookkeeping costs that help support an otherwise valid claim or business activity.
For the core ATO-style claim tests behind these examples, see How to Claim Tax Deductions in Australia.
What is commonly not deductible
- Private or domestic spending.
- Reimbursed expenses.
- Claims based on guesswork instead of records.
- Expenses that relate to a new income direction rather than your current work or business.
Record-keeping requirements
- Keep receipts, tax invoices, statements, bank records and any working papers that show how you calculated the claim.
- For mixed-use items, keep a simple apportionment method instead of claiming the full cost by default.
- If you claim vehicle costs, keep the logbook or travel records needed for the method you use.
- Store records in a way that lets you trace a deduction back to the actual work or business activity quickly.
Use the record-keeping guide if you need the broader checklist behind these points.
Common mistakes
- Treating an expense as deductible because it feels work related, even though it fails the ATO tests.
- Claiming 100 percent of a mixed-use item without separating private use.
- Ignoring the impact of reimbursements, allowances or business structure on the claim.
- Waiting until year end to rebuild records from memory.
Frequently asked questions
Do I need a receipt for every claim?
Good records are a core part of a supportable claim. The right evidence depends on the expense, but relying on memory is a weak approach.
Can I claim something if I partly use it for private reasons?
Sometimes, but usually only for the work-related or business-use share and only where you can support the split.
Should I start with this page or an occupation guide?
Use this page for the broad rules, then move to the closest occupation guide so you can see how the general framework applies in that work context.
Related guides
Closest guides and hubs
- Record Keeping for Tax Deductions in Australia (2026 Guide)
- Employee vs Contractor Tax Deductions in Australia (2026 Guide)
- What You Can and Can't Claim at Tax Time in Australia (2026 Guide)
- Tax Deductions for Small Business Owners in Australia
Support pages
- How to Claim Tax Deductions in Australia (2026 Guide)
- Record Keeping for Tax Deductions in Australia (2026 Guide)
- Employee vs Contractor Tax Deductions in Australia (2026 Guide)
- Editorial Policy
Review note, sources and disclaimer
Reviewed by: Australia Tax Deductions editorial team
Review date: 22 March 2026
Editorial note: This page is a practical overview page that points readers to more specific occupation guides, support pages and official ATO references. It is not personal tax advice.
Methodology: Read the Editorial Policy and Review Methodology pages for how this site checks and updates content.
Primary references
- ATO claiming deductions 2025 instructions
- ATO occupation and industry specific guides
- ATO business deductions
- ATO employee or independent contractor
General educational information only. Tax outcomes depend on your circumstances, records, business structure and the current ATO rules. Check the latest official guidance or speak with a registered tax professional before acting on any deduction claim.