What Can I Claim on Tax? A Bundoora Individual's 2025–26 Deduction Guide

Every July, Bundoora locals sit down to do their tax with the same question: what can I actually claim? Claim too little and you hand money to the ATO you did not need to. Claim the wrong thing and you risk an audit. This guide walks through what you can legitimately deduct on your 2025–26 individual tax return, in plain English, so you keep more of what you have earned.

The three golden rules

Before any specific deduction, the ATO applies three tests. Get this right and the rest follows:

1. The expense must directly relate to earning your income.
2. You must have spent the money yourself and not been reimbursed by your employer.
3. You must have a record — a receipt, invoice or bank statement — to prove it.

If a purchase is part work and part private (a mobile phone, say), you can only claim the work-related portion. Keeping a simple percentage estimate backed by records is the safest approach.

Common deductions for Bundoora workers

Depending on your job, you may be able to claim:

• Working-from-home running costs (see below).
• Car and travel expenses for work journeys — not your normal commute, but trips between job sites or to see clients.
• Tools, equipment and technology used for work (immediately for items under $300, or depreciated over time above that).
• Compulsory uniforms, protective clothing and laundry.
• Self-education and professional development that relates to your current role.
• Union fees, professional memberships and subscriptions.
• Phone and internet, to the extent you use them for work.
• Donations of $2 or more to registered deductible gift recipients.
• The fee you pay a registered tax agent — yes, our fee is deductible next year.

Working from home — the 2025–26 rules

This is where many people slip up. For 2025–26 you can use the ATO fixed rate method of 70 cents per hour worked from home. That single rate covers electricity and gas, phone, internet, stationery and computer consumables. Because those costs are already in the rate, you cannot then claim your phone or internet bill separately on top — that is "double dipping" and a common trigger for ATO queries.

The record-keeping bar has risen. A four-week sample diary is no longer enough. You now need a record of the actual hours you worked from home across the whole year — a timesheet, roster or diary kept as you go — plus at least one bill for each running cost the rate covers. You can still separately claim the decline in value of assets like a laptop or desk, repairs to them, and cleaning of a dedicated home-office space.

The $300 rule and the $1,000 "standard deduction" myth

If your total work-related expense claims come to $300 or less across the year, you do not need written receipts — but you still must have actually spent the money and be able to explain each claim. It is not a free $300 everyone can add on.

You may also have seen talk of a proposed $1,000 instant standard deduction. Do not rely on it for your 2025–26 return. It is proposed for the 2026–27 year (generally lodged in 2027) and is not the rule for the return you are lodging now.

Deductions vary by occupation

The right claims depend on what you do for work, and Bundoora's workforce is diverse. A nurse or aged-care worker at a nearby facility can typically claim laundering of uniforms, agency and registration fees, and some self-education. A tradie can claim tools, protective gear and travel between sites. An office professional working partly from home leans on the fixed-rate WFH claim plus phone and internet. A teacher or academic can claim professional memberships, resources and conference costs. The ATO even publishes occupation-specific guides — a useful starting point, though a local accountant will spot claims those checklists miss.

Common mistakes to avoid

A few errors come up again and again. Claiming your normal commute to and from work is not allowed — only work-related travel counts. Claiming the full cost of an item that is part-private (a phone, a laptop) instead of the work-use percentage will draw attention. And claiming the WFH fixed rate while separately claiming phone or internet is double-dipping. When in doubt, keep the record and ask — it is far cheaper than an amendment and interest later.

Keep your records for five years

The ATO can ask you to substantiate a claim for up to five years after you lodge. A shoebox of receipts works, but a phone photo of each receipt saved to a folder — or a simple app — makes tax time painless and protects you if questions ever arise.

Get it right with a local accountant

A registered agent knows which deductions apply to your occupation and makes sure nothing is missed. If you would rather have an expert handle it, the team at RPS are experienced tax accountants in Bundoora who explain everything in plain English. Book online or call 1300 110 120 — and check our guide to key lodgement dates so you never miss a deadline.

RPS Accountants & Business Advisors is a Melbourne-based accounting firm providing tax, accounting, and advisory services to individuals and businesses. The firm is committed to delivering clear, tailored financial solutions that streamline processes