Did you pay for it?
Keep the receipt and confirm that Defence did not supply the item or fully reimburse your cost.
Watch — ADF equipment deductions
ADF Equipment Claims: What Can You Claim on Tax?
Buying equipment yourself is only the starting point. The item must be connected to earning your taxable income, you must bear the cost and any private use must be separated.
What this video covers
- How the item and its actual duty-related purpose affect deductibility
- Why a full reimbursement usually removes the personal expense to claim
- How to apportion an eligible item between work and private use
- When an asset may need to be claimed over time rather than all at once
Ask three questions for every item
A broad label such as “military kit” is not enough to establish a deduction.
How does it support your duties?
Describe the item and explain the direct connection to earning your taxable ADF income. Preference or comfort alone is not enough.
Was there private use?
Only the eligible work-related portion can be claimed. Keep a reasonable record showing how the percentage was worked out.
Equipment records to keep
Good records support both the eligibility of the item and the amount claimed.
Receipt and purchase date
Keep evidence showing the supplier, item, amount and date of purchase.
Duty connection
Add a short note explaining which duties required the item and why the issued alternative did not meet that work need, if relevant.
Work-use calculation
Record the method used to separate work and private use for mixed-use equipment.
Reimbursement and income type
Retain reimbursement records and identify whether the expense relates to taxable income or tax-free Reserve service.
Common ADF equipment claim questions
Can I claim equipment when Defence supplied an alternative?
Possibly, but buying a preferred item does not by itself establish a deduction. The self-purchased item still needs a direct connection to earning your taxable income, and the other deduction rules must be met.
Can I claim an item that Defence reimbursed?
If the expense was fully reimbursed, you generally cannot claim it again. A partial reimbursement may leave only the unreimbursed eligible portion to consider.
Does a deduction mean the ATO refunds the full purchase price?
No. A deduction reduces taxable income. The tax saving depends on your circumstances, and mixed-use or depreciating assets may produce a smaller claim than the purchase price.
Video transcript
The supplied transcript has been lightly edited for punctuation, clarity, names and Australian spelling.
Bought your own kit because the issued gear was not suitable? Maybe it was a better torch, protective gloves or a bag for carrying your work equipment. Can you claim it on tax? Possibly, but buying it yourself and using it on duty is only the starting point.
The key questions are: did you pay for it, was it directly connected to earning your taxable income and were you reimbursed? Choosing to buy your own equipment does not automatically rule out a deduction just because Defence supplied an alternative, but preferring a different brand or finding something more comfortable does not by itself establish a claim.
A torch used for your duties or a bag used to carry work equipment may qualify. Clothing and footwear have more specific rules. Protective items and eligible uniforms can be deductible, but ordinary clothing and everyday shoes generally are not, even if you only wear them to work. Describe the actual item and its purpose. Calling it military kit is not enough.
What if you also use the item outside work? You need to separate the work and private use. For example, suppose an eligible torch costs $100 and you use it 80 per cent for work. If it qualifies for an immediate deduction, the work-related amount would be $80, not the full purchase price.
More expensive equipment may need to be claimed over its useful life through decline in value rather than all at once. A deduction reduces your taxable income; it does not mean the ATO pays back the full cost of the item. The amount you save depends on your tax circumstances.
Keep the receipt, purchase date and a note explaining how the item supports your duties. Record any private use and whether Defence reimbursed you. If the expense was fully reimbursed, you generally cannot claim it again. Expenses relating to tax-free Reserve service also need separate consideration.
Bought your own equipment for Defence work? Keep the records and have each item checked. At DefenceTax, we help ADF members understand what they can claim and how to claim it correctly. Book your appointment at defencetax.com.au or call 0418 327 096. DefenceTax: professional advice for those who serve.
General information only. Tax treatment depends on the applicable law, relevant dates, supporting records and your individual circumstances.