You paid for it
You incurred the expense yourself and your employer did not reimburse you.
Not every work expense is automatically deductible. This short guide explains the three rules behind a valid claim and the common expense categories that may apply differently across Defence roles.
A work-related expense normally needs to pass all three checks. Reimbursements and private-use portions must be excluded.
You incurred the expense yourself and your employer did not reimburse you.
The expense directly connects to earning your current employment income. Mixed-use expenses must be apportioned.
Keep receipts and the records needed to show how you calculated the work-related amount.
Your duties, location, employer reimbursement and private use all affect what may be claimable.
Travel undertaken while performing your duties may qualify in some circumstances. Ordinary travel between home and a regular workplace is generally private.
Study may qualify when it has a sufficient connection to your current employment activities—not merely a future or different role.
If you paid these costs yourself, the supported work-related portion may be claimable. Personal use must be excluded.
Rental property, shares, ETFs and cryptocurrency are not work deductions, but their income, expenses and disposal events may still need to be reported correctly.
You must have paid the expense yourself without reimbursement, it must directly relate to earning your employment income, and you must keep records to substantiate it. If an expense is partly private, only the work-related portion may be claimable.
Ordinary travel between home and a regular workplace is generally private. Travel undertaken while performing your employment duties may be deductible in some circumstances, depending on the facts and whether you were reimbursed.
Self-education needs a sufficient connection to your current employment activities. For personally paid phone, internet or equipment costs, only the supported work-related portion may be claimable.
The transcript has been lightly edited for punctuation and Australian spelling.
Serving in the Australian Defence Force, there are several tax deductions you may be entitled to claim. But remember, not every expense is automatically deductible. Let's go through the most common ones.
Before claiming any deduction, remember three important rules. You must have paid for the expense yourself. It must be directly related to earning your income, and you need records to support your claim.
Depending on your duties, some work-related travel expenses may be deductible. However, travel between your home and your regular workplace is generally considered private and usually can't be claimed.
If you're studying to improve the skills you use in your current Defence role, you may be able to claim eligible self-education expenses. The study must have a direct connection to your current employment.
If you use your personal phone, internet or equipment for work, you may be able to claim the work-related portion. Keeping records of your work use is essential to maximise your deductions.
Many Defence members also invest outside of work. Rental properties, shares, ETFs, cryptocurrency and capital gains all have different tax rules, so it's important they're reported correctly.
Every Defence role is different, which means every tax return is different. Getting professional advice can help ensure you're claiming what you're entitled to while meeting your obligations.
Defence Tax: we've specialised in helping ADF members for over 51 years. If you're unsure what applies to your situation, our team is here to help.
General information only. Eligibility depends on your circumstances and the records supporting your claim.