Who can claim
This deduction is available to individuals.
- You incurred and paid the expense yourself.
- The expense has a direct connection with earning your current employment income.
- The item is used in performing employment duties.
What you cannot claim
- Do not include a private or domestic portion.
- Do not claim an item or cost your employer or another party provided, paid or reimbursed; if partly reimbursed, claim only the unreimbursed eligible portion.
- A taxable allowance is generally declared as income. It does not automatically create or prevent a deduction; claim only the actual eligible amount you incurred.
- Private use must be excluded.
- An item supplied by the employer cannot be claimed.
How the amount is worked out
An asset costing $300 or less may be immediately deductible when the relevant tests are met. Assets above that threshold are generally claimed as decline in value over their effective life.
You can work this amount out step by step in the Deductit calculators.
Records the ATO expects
- Purchase invoice
- Date first used
- Work-use basis
- Effective-life support where decline in value is claimed
Where this rule comes from
Primary source: ATO Employees guide for work expenses (Document version dated 5 December 2025). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.