# Deductit full Australian tax deduction reference > This file contains Deductit's complete machine-readable deduction catalogue for the 2025-26 and 2026-27 Australian income years. Every rule retains its eligibility conditions, exclusions, calculation method, records and ATO source. ## Scope and use - This is educational information, not personalised tax advice. - A deduction must be supported by the user's actual facts and records. - Private use, reimbursements and mixed-purpose expenses can reduce or eliminate a claim. - Conditional and review-status items require closer checking before use. - The linked Australian Taxation Office material is the primary authority. ## Public pages ### [Tax Deductions Australia for Individuals and Companies](https://deductit.com.au) Search source-linked Australian tax deductions, follow each calculation and keep the evidence for individual or company claims together. Primary topics: tax deductions, tax deductions Australia, Australian tax deductions. ### [Australian Tax Deductions List and Rules | Deductit](https://deductit.com.au/deductions) Browse Australian tax deductions by expense and taxpayer, then check who can claim, what is excluded and which records support the amount. Primary topics: tax deductions list, tax deductions Australia, what tax deductions can I claim. ### [Working From Home Tax Deductions Australia | Deductit](https://deductit.com.au/deductions/working-from-home) Understand working from home tax deductions, what each method covers, which costs are excluded and the records needed to support an Australian claim. Primary topics: working from home tax deductions, working from home tax deductions Australia, working from home tax deductions 2025, working from home tax deductions 2026, work from home tax deductions. ### [Pay Calculator Australia 2026-27 | Deductit](https://deductit.com.au/pay-calculator) Estimate Australian take-home pay using the ATO 2026-27 withholding schedules, with PAYG, HELP loan, Medicare and super settings shown clearly. Primary topics: pay calculator Australia, pay calculator, take home pay calculator, salary calculator, income tax calculator. ### [Tax Deduction Calculator Australia | Deductit](https://deductit.com.au/calculators) Calculate car, working from home and asset deductions with the applicable income-year rate, eligibility checks and formula shown beside the result. Primary topics: tax deduction calculator Australia, calculator for tax deductions, calculate tax deductions. ### [Small Business Tax Deductions Australia | Deductit](https://deductit.com.au/companies) Review small business and company tax deductions across operating costs, assets and finance, with the applicable rule and evidence kept visible. Primary topics: small business tax deductions, small business tax deductions Australia, company tax deductions. ## Deduction catalogue (98 rules) ### Work-related car expenses Eligible work travel in a car you own or lease, using the cents per kilometre or logbook method. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep a record showing how you calculated work kilometres. A logbook is required if you use the logbook method. #### Eligibility - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The car travel is undertaken while performing employment duties or between workplaces. - For the cents per kilometre method, you can substantiate a reasonable estimate of work kilometres. #### Conditions - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The car travel is undertaken while performing employment duties or between workplaces. - For the cents per kilometre method, you can substantiate a reasonable estimate of work kilometres. #### Exclusions - Do not include a private or domestic portion. - Do not include an amount an employer paid or reimbursed. - Ordinary home-to-regular-workplace travel is private, unless a specific exception applies. - The cents per kilometre method is limited to 5,000 work kilometres per car for the income year. #### Calculation Cents per kilometre: eligible work kilometres, capped at 5,000, multiplied by the ATO rate for the income year. 2025-26: 88 cents. 2026-27: 91 cents. #### Records - Work-kilometre calculation or diary - Odometer records where relevant - Five-year logbook and odometer readings for the logbook method #### [ATO cents per kilometre determination](https://softwaredevelopers.ato.gov.au/CentsperKilometreDeductionRateforCarExpenses) Reviewed against the linked source on 28 July 2026. ### Work-related travel and accommodation Transport, accommodation and incidental costs for overnight or other travel required by current employment duties. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep invoices, itinerary, work purpose and travel diary where the substantiation rules require one. #### Eligibility - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The travel is required to perform your job, rather than merely to get to your ordinary workplace. #### Conditions - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The travel is required to perform your job, rather than merely to get to your ordinary workplace. #### Exclusions - Do not include a private or domestic portion. - Do not include an amount an employer paid or reimbursed. - Private sightseeing, family travel, ordinary meals and a private extension are excluded or must be apportioned. - Entertainment is not deductible merely because it occurs while travelling. #### Calculation Claim only the work-related portion of actual deductible costs. #### Records - Receipts and invoices - Itinerary and work purpose - Travel diary for trips that trigger the diary rules #### [ATO Employees guide for work expenses](https://www.ato.gov.au/law/view/document?DocNum=0215000005&FullDocument=true) Reviewed against the linked source on 28 July 2026. ### Work clothing, laundry and dry cleaning Eligible costs for occupation-specific clothing, protective clothing or a compulsory uniform. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep purchase and cleaning records, plus a reasonable calculation for laundry where the substantiation exception is used. #### Eligibility - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The clothing is protective, occupation-specific or a compulsory uniform required by your employer. #### Conditions - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The clothing is protective, occupation-specific or a compulsory uniform required by your employer. #### Exclusions - Do not include a private or domestic portion. - Do not include an amount an employer paid or reimbursed. - Conventional clothing is not deductible, even if your employer requires it or it is only worn at work. - Laundry cannot be claimed where the underlying clothing is not deductible. #### Calculation Claim actual eligible costs, reduced for private use. A record-keeping exception is not an automatic deduction. #### Records - Receipts for clothing, dry-cleaning and repairs - Laundry calculation or diary - Employer uniform policy where relevant #### [ATO Employees guide for work expenses](https://www.ato.gov.au/law/view/document?DocNum=0215000005&FullDocument=true) Reviewed against the linked source on 28 July 2026. ### Protective items and equipment Protective items required to reduce a real risk of illness or injury in your work. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the receipt and evidence showing the item protects against a workplace risk. #### Eligibility - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The item is protective because of the nature of your employment duties or workplace risks. #### Conditions - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The item is protective because of the nature of your employment duties or workplace risks. #### Exclusions - Do not include a private or domestic portion. - Do not include an amount an employer paid or reimbursed. - Everyday items with only incidental work use are not protective equipment for this purpose. - Do not claim an item supplied by your employer. #### Calculation Claim the deductible work-related portion. Depreciate an asset where the depreciation rules apply. #### Records - Receipt - Job or safety requirement showing the work connection #### [ATO Employees guide for work expenses](https://www.ato.gov.au/law/view/document?DocNum=0215000005&FullDocument=true) Reviewed against the linked source on 28 July 2026. ### Tools and equipment Tools, reference materials and work equipment you use to earn employment income. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the purchase record, date first used and a reasonable work-use calculation. #### Eligibility - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The item is used in performing employment duties. #### Conditions - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The item is used in performing employment duties. #### Exclusions - Do not include a private or domestic portion. - Do not include an amount an employer paid or reimbursed. - Private use must be excluded. - An item supplied by the employer cannot be claimed. #### Calculation 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. #### Records - Purchase invoice - Date first used - Work-use basis - Effective-life support where decline in value is claimed #### [ATO Employees guide for work expenses](https://www.ato.gov.au/law/view/document?DocNum=0215000005&FullDocument=true) Reviewed against the linked source on 28 July 2026. ### Phone, data and internet The work-related portion of personally paid phone, internet and data costs. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep bills and a representative usage record or another reasonable method of apportionment. #### Eligibility - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The service is used to perform employment duties. #### Conditions - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The service is used to perform employment duties. #### Exclusions - Do not include a private or domestic portion. - Do not include an amount an employer paid or reimbursed. - Do not duplicate phone, internet, stationery or consumable costs already covered by the working-from-home fixed-rate method. #### Calculation Total personally paid cost multiplied by the substantiated work-use percentage, unless a fixed-rate method already covers the expense. #### Records - Service bills - Representative work-use record - Calculation of work percentage #### [ATO Employees guide for work expenses](https://www.ato.gov.au/law/view/document?DocNum=0215000005&FullDocument=true) Reviewed against the linked source on 28 July 2026. ### Professional memberships and subscriptions Annual subscriptions to professional associations or trade bodies connected with current employment. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the annual invoice or subscription statement. #### Eligibility - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The association or subscription has a sufficient connection with your current employment activities. #### Conditions - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The association or subscription has a sufficient connection with your current employment activities. #### Exclusions - Do not include a private or domestic portion. - Do not include an amount an employer paid or reimbursed. - Private club fees and social subscriptions are excluded. - Joining fees can be capital in nature and require separate analysis. #### Calculation Claim the deductible work-related portion of the recurring fee. #### Records - Subscription invoice - Description of the professional connection #### [ATO deductions you can claim](https://www.ato.gov.au/mytaxdeductionsyoucanclaim) Reviewed against the linked source on 28 July 2026. ### Union fees and workplace representation Union fees and eligible workplace representation costs connected with earning employment income. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: standard - Evidence summary: Keep the union annual statement or receipt. #### Eligibility - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The fee is paid to a union or work-related association in connection with current employment. #### Conditions - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The fee is paid to a union or work-related association in connection with current employment. #### Exclusions - Do not include a private or domestic portion. - Do not include an amount an employer paid or reimbursed. - Private or political contributions are not deductible as work-related expenses. #### Calculation Claim the eligible amount paid during the income year. #### Records - Union statement or receipt #### [ATO deductions you can claim](https://www.ato.gov.au/mytaxdeductionsyoucanclaim) Reviewed against the linked source on 28 July 2026. ### Work licences, checks and accreditations Renewal costs for licences, registrations, working-with-children checks and accreditations that are connected with current duties. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the renewal receipt and evidence of the current-work connection. #### Eligibility - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The renewal or check is required or directly useful in your current employment. #### Conditions - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The renewal or check is required or directly useful in your current employment. #### Exclusions - Do not include a private or domestic portion. - Do not include an amount an employer paid or reimbursed. - A cost that is to obtain new employment or establish a new profession is not automatically deductible. #### Calculation Claim the deductible recurring work-related portion. #### Records - Receipt - Current role requirement or registration details #### [ATO deductions you can claim](https://www.ato.gov.au/mytaxdeductionsyoucanclaim) Reviewed against the linked source on 28 July 2026. ### Trade journals and professional publications Publications and digital resources that maintain knowledge used in current employment. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the subscription invoice and note the connection with your job duties. #### Eligibility - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The publication is sufficiently connected with the skills or knowledge used in your current work. #### Conditions - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The publication is sufficiently connected with the skills or knowledge used in your current work. #### Exclusions - Do not include a private or domestic portion. - Do not include an amount an employer paid or reimbursed. - General news, entertainment and personal-interest subscriptions are excluded. #### Calculation Claim the work-related portion, considering prepaid-expense timing where applicable. #### Records - Invoice - Description of work relevance #### [ATO Employees guide for work expenses](https://www.ato.gov.au/law/view/document?DocNum=0215000005&FullDocument=true) Reviewed against the linked source on 28 July 2026. ### Self-education, courses and seminars Study that maintains or improves skills used in current employment, or is likely to increase income from current employment. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep course invoices, attendance records, travel records and a note connecting the study to your current job duties. #### Eligibility - You are earning employment income when the expense is incurred. - The subject or component maintains or improves skills used in current employment, or is likely to increase income from current employment. #### Conditions - You are earning employment income when the expense is incurred. - The subject or component maintains or improves skills used in current employment, or is likely to increase income from current employment. #### Exclusions - A course that only enables new employment or a change of occupation is excluded. - HELP and other study-loan repayments are not deductible. - Employer-paid or reimbursed course costs are excluded. #### Calculation Claim eligible course and related costs, applying the normal work-use, travel and asset rules to each component. #### Records - Course or seminar invoice - Current-duty connection - Travel and accommodation records where relevant #### [ATO self-education expenses](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/education-training-and-seminars/self-education-expenses) Reviewed against the linked source on 28 July 2026. ### Overtime meals A meal purchased while working overtime where an eligible overtime meal allowance is received under an industrial instrument. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the allowance evidence, meal records and receipts where the substantiation rules require them. #### Eligibility - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - You receive a separately identifiable overtime meal allowance under an award, enterprise agreement or similar industrial instrument. - You buy a meal while working overtime. #### Conditions - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - You receive a separately identifiable overtime meal allowance under an award, enterprise agreement or similar industrial instrument. - You buy a meal while working overtime. #### Exclusions - Do not include a private or domestic portion. - Do not include an amount an employer paid or reimbursed. - Ordinary meals, snacks and meals during a normal working day are private. - An allowance does not itself create a deduction; the eligible expense must be incurred. #### Calculation Claim actual eligible meal expenditure, subject to the applicable substantiation rules. #### Records - Payslip or industrial instrument showing allowance - Meal receipts or substantiation evidence #### [ATO Employees guide for work expenses](https://www.ato.gov.au/law/view/document?DocNum=0215000005&FullDocument=true) Reviewed against the linked source on 28 July 2026. ### Work-related COVID-19 tests The cost of a COVID-19 test where it is incurred to attend a workplace or perform employment duties. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the receipt and a record of the work reason for the test. #### Eligibility - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The test is undertaken to attend a workplace or otherwise perform employment duties. #### Conditions - You paid the expense yourself and were not reimbursed. - The expense has a direct connection with earning your current employment income. - The test is undertaken to attend a workplace or otherwise perform employment duties. #### Exclusions - Do not include a private or domestic portion. - Do not include an amount an employer paid or reimbursed. - Tests bought for private reasons or general household use are excluded. #### Calculation Claim the eligible work-related cost only. #### Records - Receipt - Work-related reason #### [ATO Employees guide for work expenses](https://www.ato.gov.au/law/view/document?DocNum=0215000005&FullDocument=true) Reviewed against the linked source on 28 July 2026. ### 2026-27 standard work-related deduction A legislated deduction of up to $1,000 for eligible Australian resident individuals with labour income, reduced by specified actual work-related deductions. - Category: Work expenses - Taxpayer types: individual - Income years: 2026-27 - Rule status: conditional. This deduction is enacted for 2026-27. Use the calculator so the $1,000 amount is not duplicated with actual work-related deductions. - Evidence summary: Keep records of labour income and every actual work-related deduction used to calculate the remaining standard amount. #### Eligibility - You are an Australian resident individual for the 2026-27 income year. - You have assessable labour income, including salary, wages or another amount covered by the statutory labour-income definition. - You calculate the standard amount after specified actual work-related deductions. #### Conditions - You are an Australian resident individual for the 2026-27 income year. - You have assessable labour income, including salary, wages or another amount covered by the statutory labour-income definition. - You calculate the standard amount after specified actual work-related deductions. #### Exclusions - The standard amount cannot exceed your labour income. - Do not add $1,000 on top of specified actual work deductions. Car, work travel, work assets, work-related COVID-19 tests and section 8-1 labour deductions reduce the available standard amount. - Income protection, personal sickness or accident insurance and trade, business or professional association subscriptions do not reduce the standard amount and may be claimed separately when eligible. - This rule does not apply to companies or to an individual who is not an Australian resident. #### Calculation For 2026-27, start with the lesser of $1,000 and assessable labour income. Subtract specified actual work-related deductions. The result cannot be below zero. Eligible association subscriptions and income-protection, sickness or accident insurance deductions are considered separately. #### Records - Income statement or labour-income record - Worksheet of specified actual work-related deductions - Separate records for association subscriptions and eligible insurance deductions #### [Treasury Laws Amendment (Tax Reform No. 1) Act 2026](https://www.legislation.gov.au/C2026A00049/latest) Reviewed against the linked source on 28 July 2026. ### Working from home: fixed-rate method A published hourly rate for eligible additional running expenses when you work from home to fulfil employment duties. - Category: Home and assets - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep a record of all hours worked from home and at least one record for each type of expense included in the rate. #### Eligibility - You work from home to fulfil employment duties, not merely to perform minimal tasks. - You incur additional running expenses. - You keep actual hours worked from home and records for the included expense types. #### Conditions - You work from home to fulfil employment duties, not merely to perform minimal tasks. - You incur additional running expenses. - You keep actual hours worked from home and records for the included expense types. #### Exclusions - Do not separately claim energy, phone, internet, stationery or computer consumables included in the fixed rate. - Do not claim employer-provided or reimbursed costs. - The shortcut method is not available. #### Calculation For 2025-26 and 2026-27, eligible hours multiplied by the ATO fixed rate of 70 cents per hour. The ATO guideline sets 70 cents from 1 July 2024. Assets, repairs and separate-office cleaning may be considered separately when eligible. #### Records - Record of all actual work-from-home hours - At least one bill or record for each included expense type #### [ATO working from home expenses](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/working-from-home-expenses) Reviewed against the linked source on 28 July 2026. ### Working from home: actual-cost method The work-related portion of each additional running expense incurred because you work from home. - Category: Home and assets - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep bills, usage calculations and evidence that the cost is additional and work-related. #### Eligibility - You work from home to fulfil employment duties and incur additional running expenses. - You can substantiate each expense and the work-related percentage. #### Conditions - You work from home to fulfil employment duties and incur additional running expenses. - You can substantiate each expense and the work-related percentage. #### Exclusions - General household items such as tea, coffee and milk are private. - Children's education costs are private. - Do not claim costs supplied or reimbursed by an employer. #### Calculation Sum each substantiated additional running expense multiplied by its work-related percentage. Do not duplicate a cost claimed under the fixed-rate method. #### Records - Bills and invoices - Work-hours or usage evidence - Calculation showing additional and work-related portion #### [ATO working from home expenses](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/working-from-home-expenses) Reviewed against the linked source on 28 July 2026. ### Working from home: separate-office cleaning Cleaning costs for a dedicated home office where the separate-workspace conditions are met. - Category: Home and assets - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep cleaning invoices or a calculation based on the dedicated work area. #### Eligibility - You have a room set aside as a home office and incur eligible cleaning costs because of your work use. #### Conditions - You have a room set aside as a home office and incur eligible cleaning costs because of your work use. #### Exclusions - General household cleaning is private. - Do not duplicate a cost covered by another method. #### Calculation Claim the substantiated work-area portion of eligible cleaning costs. #### Records - Cleaning invoices or calculation - Evidence of dedicated work area #### [ATO working from home expenses](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/working-from-home-expenses) Reviewed against the linked source on 28 July 2026. ### Decline in value of work assets The yearly decline in value of depreciating assets used to earn employment or business income. - Category: Home and assets - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the purchase record, first-use date, effective-life basis and taxable-use calculation. #### Eligibility - You held the depreciating asset and used it or had it installed ready for a taxable purpose. - You can support the effective life and taxable-use percentage. #### Conditions - You held the depreciating asset and used it or had it installed ready for a taxable purpose. - You can support the effective life and taxable-use percentage. #### Exclusions - Private use is excluded. - An immediate-deduction rule may apply instead of decline in value, depending on the taxpayer and asset. #### Calculation Prime cost or diminishing-value method, apportioned for days held and taxable use, subject to the relevant asset rules. #### Records - Purchase invoice - Date first used or installed - Effective-life support - Taxable-use calculation #### [ATO guide to depreciating assets 2025](https://www.ato.gov.au/law/view/document?LocID=%22SAV%2FDEPRECIATING%2FATH7%22&PiT=99991231235958) Reviewed against the linked source on 28 July 2026. ### Low-cost employee assets An immediate deduction for certain depreciating assets costing $300 or less and mainly used to produce non-business assessable income. - Category: Home and assets - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the purchase receipt and work-use basis. #### Eligibility - Your interest in the asset costs $300 or less after any GST input-tax-credit adjustment and it is mainly used to produce non-business assessable income. - The asset is not part of a set you started to hold in the income year costing more than $300. - The asset is not one of identical or substantially identical assets you started to hold in the income year that together cost more than $300. #### Conditions - Your interest in the asset costs $300 or less after any GST input-tax-credit adjustment and it is mainly used to produce non-business assessable income. - The asset is not part of a set you started to hold in the income year costing more than $300. - The asset is not one of identical or substantially identical assets you started to hold in the income year that together cost more than $300. #### Exclusions - Private use must be excluded. - Assets allocated to a low-value pool or subject to another depreciation regime are not claimed again here. - An asset used mainly to earn business income does not use this non-business immediate-deduction rule. #### Calculation Eligible cost multiplied by taxable use, if the immediate-deduction conditions are satisfied. #### Records - Purchase receipt - Work-use calculation #### [ATO guide to depreciating assets 2025](https://www.ato.gov.au/law/view/document?LocID=%22SAV%2FDEPRECIATING%2FATH7%22&PiT=99991231235958) Reviewed against the linked source on 28 July 2026. ### Low-value pool deduction Decline in value of qualifying low-cost and low-value assets pooled for employment or other non-business assessable income. - Category: Home and assets - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the pool worksheet, asset cost or adjustable-value records, taxable-use calculations and disposal records. #### Eligibility - The assets are used to produce assessable income and are allocated to a low-value pool. - A low-cost asset costs less than $1,000. A low-value asset has an opening adjustable value below $1,000 under the diminishing-value method. - If you choose to pool a low-cost asset, you allocate all later low-cost assets to the same pool. #### Conditions - The assets are used to produce assessable income and are allocated to a low-value pool. - A low-cost asset costs less than $1,000. A low-value asset has an opening adjustable value below $1,000 under the diminishing-value method. - If you choose to pool a low-cost asset, you allocate all later low-cost assets to the same pool. #### Exclusions - An asset costing $300 or less that qualifies for an immediate deduction is not added to the pool. - Do not use the pool for assets that are subject to a different depreciation regime or for a cost already claimed elsewhere. - Do not also claim the same decline in value at a work-expense or rental-property label. - From 2026-27, a new asset expected to be used mainly to produce labour income cannot be allocated to a low-value pool. Assets already in the pool remain subject to the pool rules. #### Calculation For 2025-26, generally apply 37.5% to the eligible opening pool balance and qualifying low-value assets, plus 18.75% to qualifying low-cost assets and eligible additions allocated during the year. For 2026-27, continue the existing pool calculation but do not add a new asset expected to be used mainly to earn labour income. #### Records - Low-value pool worksheet - Asset invoices and adjustable-value records - Taxable-use and disposal calculations #### [Treasury Laws Amendment (Tax Reform No. 1) Act 2026](https://www.legislation.gov.au/C2026A00049/latest) Reviewed against the linked source on 28 July 2026. ### Cost of managing tax affairs Tax agent, BAS agent, recognised tax-advice and related costs incurred to manage tax affairs. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the invoice and a description of the tax-related work. #### Eligibility - The cost is incurred in managing tax affairs, such as preparing or lodging a return or activity statement, recognised tax advice, tax software or dealing with the ATO. #### Conditions - The cost is incurred in managing tax affairs, such as preparing or lodging a return or activity statement, recognised tax advice, tax software or dealing with the ATO. #### Exclusions - Tax shortfall penalties and similar penalties are not deductible. - General interest charge and shortfall interest charge incurred on or after 1 July 2025 are not deductible. - Financial advice unrelated to managing tax affairs is not deductible under this heading. #### Calculation Claim the deductible incurred amount, apportioned where the service has a separate non-tax purpose. #### Records - Invoice from the adviser or supplier - Description of tax-related service - Apportionment for mixed-purpose software or advice #### [ATO cost of managing tax affairs](https://www.ato.gov.au/myTax25CostOfManagingTaxAffairs) Reviewed against the linked source on 28 July 2026. ### Income protection insurance Premiums for insurance that replaces employment income if you cannot work. - Category: Finance and tax - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the annual policy schedule identifying the income-protection component. #### Eligibility - The premium protects against loss of assessable employment income. #### Conditions - The premium protects against loss of assessable employment income. #### Exclusions - Life, trauma, total and permanent disability and other capital-benefit components are not deductible. - Premiums paid through super are not deductible to you. #### Calculation Claim only the premium attributable to income-replacement cover. #### Records - Policy schedule - Premium statement - Apportionment if policy is bundled #### [ATO investment income deductions](https://www.ato.gov.au/api/public/content/0-de04a90f-da15-4998-9578-fea2bbba65d8) Reviewed against the linked source on 28 July 2026. ### Investment interest and account-keeping fees Interest and account costs incurred in earning assessable interest or other investment income. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep loan and account statements plus a tracing calculation for borrowed funds. #### Eligibility - Borrowed funds or the account are used to earn assessable investment income. #### Conditions - Borrowed funds or the account are used to earn assessable investment income. #### Exclusions - Interest on a personal tax debt is not deductible. - Private and non-income-producing use is excluded. - Mixed-purpose borrowing must be apportioned. #### Calculation Claim the portion of deductible interest and account fees connected with earning assessable investment income. #### Records - Loan statements - Account statements - Tracing and apportionment calculation #### [ATO investment income deductions](https://www.ato.gov.au/api/public/content/0-de04a90f-da15-4998-9578-fea2bbba65d8) Reviewed against the linked source on 28 July 2026. ### Dividend and share-income costs Ongoing costs of holding and earning income from shares or managed investments. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep statements showing management fees, account costs and income-producing holdings. #### Eligibility - The cost is ongoing and sufficiently connected with earning assessable dividend or investment income. #### Conditions - The cost is ongoing and sufficiently connected with earning assessable dividend or investment income. #### Exclusions - Share purchase and sale costs are generally capital and are considered for capital-gains-tax cost-base purposes instead. - Private or non-income-producing portions are excluded. #### Calculation Claim the deductible ongoing income-producing portion. #### Records - Investment statements - Fee invoices - Apportionment calculation #### [ATO investment income deductions](https://www.ato.gov.au/api/public/content/0-de04a90f-da15-4998-9578-fea2bbba65d8) Reviewed against the linked source on 28 July 2026. ### Financial advice for existing investments Ongoing advice fees that service an existing income-producing investment portfolio. - Category: Investment and property - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the adviser invoice with enough detail to identify the existing income-producing investments and the service provided. #### Eligibility - The advice is ongoing or recurrent and services existing investments that produce assessable income. #### Conditions - The advice is ongoing or recurrent and services existing investments that produce assessable income. #### Exclusions - Advice to acquire a new investment, set up an investment strategy or put an investment structure in place is capital in nature and not deductible under the general rule. - Advice partly related to private matters or non-income-producing investments must be apportioned. #### Calculation Claim the portion of recurring advice costs connected with existing assessable-income investments. #### Records - Detailed adviser invoice - Portfolio and income connection - Apportionment basis #### [ATO TD 2024/7 financial advice fees](https://www.ato.gov.au/law/view/pdf?DocID=TXD%2FTD20247%2FNAT%2FATO%2F00001&PiT=99991231235958&filename=law%2Fview%2Fpdf%2Fpbr%2Ftd2024-007.pdf) Reviewed against the linked source on 28 July 2026. ### Capital gains event on an asset Review a sale, transfer, gift, loss, destruction or other disposal of property, shares, crypto, units, business assets or another CGT asset. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. This is a tax event to review, not a deductible expense. The workspace keeps it outside the calculated deduction total. - Evidence summary: Keep acquisition, improvement, ownership, disposal and incidental-cost records. Property generally uses the contract date for the CGT event. #### Eligibility - A CGT event happened during the income year, including a sale, transfer, gift, disposal, loss or destruction of an asset. - The asset or event is within Australia's capital-gains-tax rules. #### Conditions - A CGT event happened during the income year, including a sale, transfer, gift, disposal, loss or destruction of an asset. - The asset or event is within Australia's capital-gains-tax rules. #### Exclusions - Do not treat the sale proceeds or capital gain as a deduction. - A capital loss can reduce capital gains only. It cannot reduce salary, wages, rental income or ordinary business income. - A transfer below market value to a related party may use market value rather than the amount received. #### Calculation Identify the CGT event and event date, then compare capital proceeds with the cost base or reduced cost base. Apply current-year capital losses, prior-year net capital losses, any eligible CGT discount and any relevant concession in the required order. #### Records - Acquisition contract and settlement statement - Purchase and disposal incidental costs - Capital improvements and ownership costs - Disposal contract, proceeds and market valuation where relevant #### [ATO Guide to capital gains tax 2026](https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-guide-2026) Reviewed against the linked source on 28 July 2026. ### Home or former home CGT review Check whether a full, partial or no main-residence exemption applies when a home, former home or surrounding land is sold or transferred. - Category: Investment and property - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: review. Rental use, business use, foreign residency, inheritance, more than 2 hectares or building and renovation periods require a detailed CGT review. - Evidence summary: Keep occupancy dates, rental and business-use dates, valuations, land area, residency history and ownership records. #### Eligibility - You disposed of a dwelling that was your main residence for all or part of the ownership period. - You can establish when you moved in, moved out and used any part to produce assessable income. #### Conditions - You disposed of a dwelling that was your main residence for all or part of the ownership period. - You can establish when you moved in, moved out and used any part to produce assessable income. #### Exclusions - A full exemption generally does not apply where the home was not the main residence for the whole ownership period, was used to produce income, exceeds 2 hectares or the owner is an excluded foreign resident. - The 6-year absence rule does not permit two homes to be treated as the main residence for the same period except for limited overlap rules. - Home-business occupancy deductions can create a partial CGT exposure. #### Calculation Test the full exemption first. If it does not apply, calculate the taxable ownership days and income-producing portion, then consider the 6-year absence rule, the first-used-to-produce-income market-value rule, limited main-residence overlap and other specific concessions. #### Records - Purchase, sale and occupancy dates - Rental and business-use periods - Market valuation when first used to produce income where applicable - Land-area, foreign-residency and inherited-property records #### [ATO main residence and CGT guidance](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-home) Reviewed against the linked source on 28 July 2026. ### Capital losses and CGT discount Apply capital losses and the current CGT discount in the correct order after calculating each capital gain. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. Loss allocation can change the final result. Apply losses to gains deliberately before using a discount. - Evidence summary: Keep a schedule of each gain, current and carried-forward capital losses, acquisition dates and residency periods. #### Eligibility - You made one or more capital gains or capital losses in the income year. - You can identify the taxpayer type, ownership period and any foreign-residency period. #### Conditions - You made one or more capital gains or capital losses in the income year. - You can identify the taxpayer type, ownership period and any foreign-residency period. #### Exclusions - Companies cannot use the general 50% CGT discount. - Individuals and trusts generally need at least 12 months of ownership for the current 50% discount. - Capital losses are applied before the CGT discount and cannot be deducted from ordinary income. - Collectable losses can be used only against collectable gains. #### Calculation Apply current-year capital losses, then unapplied prior-year net capital losses, to capital gains before applying an available discount. Individuals and trusts can generally reduce an eligible discount capital gain by 50%; an affordable-housing interest may qualify for an additional discount, while foreign-residency periods can reduce the discount. #### Records - CGT worksheet - Capital-loss register - Acquisition and disposal dates - Residency history #### [ATO Guide to capital gains tax 2026](https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-guide-2026) Reviewed against the linked source on 28 July 2026. ### Complex CGT assets and exceptions Check special treatment for inherited, pre-CGT, personal-use, collectable, foreign-residency and non-arm's-length assets. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep probate, valuation, residency, relationship, acquisition and asset-use records relevant to the exception. #### Eligibility - The CGT event involves an inherited asset, pre-20 September 1985 asset, personal-use asset, collectable, foreign-residency period or non-arm's-length transfer. #### Conditions - The CGT event involves an inherited asset, pre-20 September 1985 asset, personal-use asset, collectable, foreign-residency period or non-arm's-length transfer. #### Exclusions - Personal-use asset losses are disregarded, and gains are disregarded where the asset cost $10,000 or less. - Collectable gains and losses are disregarded where the collectable cost $500 or less; other collectable losses are quarantined to collectable gains. - Pre-CGT status does not remove every possible consequence, including CGT event K6 and major-improvement rules. #### Calculation Apply the specific asset and taxpayer rule before the ordinary CGT method. A non-arm's-length transfer can require market-value substitution. Inherited and pre-CGT assets can use deemed acquisition dates or values, and foreign-residency periods can change the taxable asset scope and discount. #### Records - Acquisition date and cost - Probate and deceased-estate records - Market valuation - Residency history - Relationship and transfer evidence #### [ATO Guide to capital gains tax 2026](https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-guide-2026) Reviewed against the linked source on 28 July 2026. ### CGT reform from 1 July 2027 Prepare for the enacted 1 July 2027 CGT transition, including deferred pre-transition gains, valuation, indexation and discount changes. - Category: Investment and property - Taxpayer types: individual, company - Income years: From 2027-28 - Rule status: review. The reform is enacted but does not change a 2025-26 or 2026-27 CGT calculation. Keep transition records before 1 July 2027. - Evidence summary: Preserve asset cost records and obtain supportable 30 June 2027 market values where the transition provisions may apply. #### Eligibility - An Australian resident individual or relevant trust holds an eligible post-CGT asset through 30 June 2027 and continues to hold it until a later realisation event. - You hold a pre-CGT asset through 30 June 2027 and continue to hold it until a realisation event on or after 1 July 2027. - You expect a CGT event on or after 1 July 2027 and the revised indexation, discount, residential-gain or minimum-tax rules may apply. #### Conditions - An Australian resident individual or relevant trust holds an eligible post-CGT asset through 30 June 2027 and continues to hold it until a later realisation event. - You hold a pre-CGT asset through 30 June 2027 and continue to hold it until a realisation event on or after 1 July 2027. - You expect a CGT event on or after 1 July 2027 and the revised indexation, discount, residential-gain or minimum-tax rules may apply. #### Exclusions - Do not apply the post-1 July 2027 calculation to a CGT event that happens before 1 July 2027. - The deemed-sale transition for post-CGT assets is limited to eligible Australian resident individuals and trusts. A company does not enter that transition merely because it holds a post-CGT asset across 1 July 2027. - Eligible new residential dwelling and affordable-housing gains are excluded from the ordinary post-CGT transition and retain separate 50% discount rules. - Foreign and temporary residency, pre-CGT status, trusts, companies and small-business concessions each change which transition provisions apply. #### Calculation For an eligible post-CGT asset, the resident individual or trustee is taken to sell it just before 1 July 2027 and reacquire it immediately after. The transition amount is the asset's market value just before 1 July 2027 unless the taxpayer chooses a method determined under section 112-185 when the later realisation event occurs. Any notional 30 June 2027 gain or loss is disregarded at transition and deferred until the income year of that later event, so the transition alone does not create an immediate tax bill. Calculate the deferred pre-transition result separately from the post-1 July 2027 result. For a residential asset, classify the residential portion using the number and extent of residential-accommodation days in the relevant pre- or post-July 2027 ownership period, excluding days for which the gain can reasonably be expected to be disregarded under the main-residence exemption. Eligible resident individuals and trusts can use post-transition cost-base indexation; the general 50% discount does not apply to ordinary post-1 July 2027 gains, while qualifying new residential dwelling and affordable-housing gains have separate rules. Pre-CGT assets have their own deemed sale, cost-base reset and CGT event K6 treatment. For the small-business 50% active asset reduction, the $2 million small-business-entity threshold is disregarded from 2027-28, but the other basic conditions continue to apply. #### Records - 30 June 2027 market valuation - Full cost-base records - Residency history - Asset classification and ownership history - Residential accommodation and main-residence-use calendar #### [Treasury Laws Amendment (Tax Reform No. 1) Act 2026](https://www.legislation.gov.au/C2026A00049/latest) Reviewed against the linked source on 28 July 2026. ### 30% minimum tax on certain capital gains from 1 July 2027 Review the enacted minimum-tax gap calculation for covered capital gains of Australian resident individuals. - Category: Investment and property - Taxpayer types: individual - Income years: From 2027-28 - Rule status: review. This rule starts with CGT events on or after 1 July 2027 and uses a gap calculation, not a separate 30% tax on the whole transaction. - Evidence summary: Keep the post-concession capital-gain calculation, gift and conservation-covenant deductions, residency history and social-support payment statements. #### Eligibility - You are an individual who is an Australian resident at any time in the income year. - You have covered residential or non-residential capital gains from CGT events on or after 1 July 2027 after applying the statutory net-capital-gain steps. #### Conditions - You are an individual who is an Australian resident at any time in the income year. - You have covered residential or non-residential capital gains from CGT events on or after 1 July 2027 after applying the statutory net-capital-gain steps. #### Exclusions - Capital gains covered by the new-residential-dwelling or affordable-housing provisions are excluded from the minimum-tax capital gain. - The extra tax does not apply where you receive one of the listed social security, family assistance, veterans, military rehabilitation or other statutory support payments during the income year. - This is not a flat 30% tax on gross sale proceeds or on every capital gain. #### Calculation Start with covered capital gains remaining after the net-capital-gain method, then reduce them by eligible gift and conservation-covenant deductions. Compare 30% of that minimum-tax capital gain with the basic income tax attributable to it. Extra tax is payable only for a positive whole-dollar gap. #### Records - Net capital gain worksheet - Gift and conservation-covenant deductions - Basic income tax liability calculation - Residency and eligible payment records #### [Treasury Laws Amendment (Tax Reform No. 1) Act 2026](https://www.legislation.gov.au/C2026A00049/latest) Reviewed against the linked source on 28 July 2026. ### Working Australians tax offset from 2027-28 An enacted non-refundable tax offset of up to $250 for eligible Australian resident individuals with net labour income above the tax-free threshold. - Category: Finance and tax - Taxpayer types: individual - Income years: From 2027-28 - Rule status: review - Evidence summary: Keep labour-income, sole-trader business, personal-services-income, employee-share-scheme and labour-deduction calculations. #### Eligibility - You are an Australian resident individual for the income year. - Net labour income exceeds the tax-free threshold. #### Conditions - You are an Australian resident individual for the income year. - Net labour income exceeds the tax-free threshold. #### Exclusions - The offset is not refundable, transferable or carried forward. - Partnership and trust business income is not included as the individual's business labour amount for this calculation. - The offset does not apply to 2025-26 or 2026-27. #### Calculation From 2027-28, calculate net labour income under the statutory definition. The offset is the lesser of $250 and the basic income tax that would arise if taxable income consisted only of that net labour income. #### Records - Labour income schedule - Labour deduction schedule - Basic income tax calculation #### [Treasury Laws Amendment (Tax Reform No. 1) Act 2026](https://www.legislation.gov.au/C2026A00049/latest) Reviewed against the linked source on 28 July 2026. ### Rental advertising and agent fees Advertising, management, letting and commission costs for a rental property that is rented or genuinely available for rent. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep agent statements, advertising invoices and records of rental availability. #### Eligibility - The property is rented or genuinely available for rent and the expense is incurred to earn rental income. #### Conditions - The property is rented or genuinely available for rent and the expense is incurred to earn rental income. #### Exclusions - Private use, non-rental periods and capital acquisition or sale costs are excluded or apportioned. #### Calculation Claim the deductible portion for the rental period or genuine availability period. #### Records - Agent statements - Advertising invoices - Rental availability calendar #### [ATO Rental properties guide 2026](https://www.ato.gov.au/forms-and-instructions/rental-properties-2026) Reviewed against the linked source on 28 July 2026. ### Rental rates, body corporate charges and insurance Holding costs such as council rates, water charges, land tax, strata charges and insurance for an income-producing rental property. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep levy notices, rates notices, insurance schedules and rental-availability records. #### Eligibility - The cost relates to a property that is rented or genuinely available for rent. #### Conditions - The cost relates to a property that is rented or genuinely available for rent. #### Exclusions - Do not duplicate amounts already included in body corporate charges. - Private use and non-rental periods require apportionment. #### Calculation Claim the deductible rental-income-producing portion for the income year. #### Records - Rates and levy notices - Insurance invoice - Rental availability records #### [ATO Rental properties guide 2026](https://www.ato.gov.au/forms-and-instructions/rental-properties-2026) Reviewed against the linked source on 28 July 2026. ### Rental cleaning, gardening, pest control and operating costs Ordinary costs of maintaining a rental property that is rented or genuinely available for rent. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep itemised supplier invoices, evidence of rental availability and any allocation for private or non-rental use. #### Eligibility - The cost is incurred for a property that is rented or genuinely available for rent. - The cost is an ordinary income-producing operating cost, such as cleaning, gardening, lawn mowing, pest control, servicing, security, stationery, postage or an eligible property record cost. #### Conditions - The cost is incurred for a property that is rented or genuinely available for rent. - The cost is an ordinary income-producing operating cost, such as cleaning, gardening, lawn mowing, pest control, servicing, security, stationery, postage or an eligible property record cost. #### Exclusions - Do not claim an amount that a tenant paid or reimbursed. - Private use, non-rental periods and capital improvements must be excluded or apportioned. - Do not duplicate a cost already included in body corporate charges or another claimed category. #### Calculation Claim the eligible rental-income-producing portion incurred in the income year. #### Records - Itemised invoices - Rental availability calendar - Apportionment calculation where relevant #### [ATO Rental properties guide 2026](https://www.ato.gov.au/forms-and-instructions/rental-properties-2026) Reviewed against the linked source on 28 July 2026. ### Rental legal expenses Legal costs directly connected with producing rental income, such as an action against a non-paying tenant. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the legal invoice, matter description, outcome and rental-availability records. #### Eligibility - The legal work is directly connected with producing rental income, such as evicting a non-paying tenant, recovering lost rent or defending an injury damages claim at the rental property. - The rental property is rented or genuinely available for rent for the relevant period. #### Conditions - The legal work is directly connected with producing rental income, such as evicting a non-paying tenant, recovering lost rent or defending an injury damages claim at the rental property. - The rental property is rented or genuinely available for rent for the relevant period. #### Exclusions - Legal costs to buy or sell the property, resist land resumption or defend title are capital and are not an immediate rental deduction. - Private, non-rental and mixed-purpose legal work must be excluded or apportioned. #### Calculation Claim the eligible revenue portion of the incurred legal cost. Consider capital-gains-tax cost-base treatment for capital legal costs. #### Records - Itemised legal invoice - Matter and outcome record - Rental availability records #### [ATO Rental properties guide 2026](https://www.ato.gov.au/forms-and-instructions/rental-properties-2026) Reviewed against the linked source on 28 July 2026. ### Rental loan interest and borrowing expenses Interest and eligible borrowing costs relating to funds used for an income-producing rental property. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep loan statements, loan documents and a record tracing the borrowed funds to the rental property. #### Eligibility - The borrowed funds are used for the rental-income-producing property or eligible rental purpose. #### Conditions - The borrowed funds are used for the rental-income-producing property or eligible rental purpose. #### Exclusions - Principal repayments are not deductible. - Private redraws or mixed-purpose loan use must be excluded or apportioned. - Borrowing expenses can have separate timing rules. #### Calculation Claim deductible interest for the income-producing use. Spread borrowing expenses where the tax rules require it. #### Records - Loan agreement - Interest statements - Borrowed-funds tracing - Borrowing-cost schedule #### [ATO Rental properties guide 2026](https://www.ato.gov.au/forms-and-instructions/rental-properties-2026) Reviewed against the linked source on 28 July 2026. ### Rental repairs and maintenance Costs that restore an income-producing rental property or asset without creating a new or improved capital asset. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep itemised invoices describing the work, timing and asset repaired. #### Eligibility - The work restores an existing income-producing rental asset and is not an initial repair or capital improvement. #### Conditions - The work restores an existing income-producing rental asset and is not an initial repair or capital improvement. #### Exclusions - Initial repairs, improvements and structural alterations are generally capital and may be treated as capital works or cost-base items. - Private or non-rental use must be excluded. #### Calculation Claim the deductible repair portion for the income-producing period. #### Records - Itemised invoice - Before-and-after description - Rental availability records #### [ATO Rental properties guide 2026](https://www.ato.gov.au/forms-and-instructions/rental-properties-2026) Reviewed against the linked source on 28 July 2026. ### Rental depreciating assets Decline in value of eligible depreciating assets used to earn residential rental income. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep asset invoices, first-use date, effective-life basis and rental-use records. #### Eligibility - The asset is used to earn rental income and the relevant depreciation conditions are met. #### Conditions - The asset is used to earn rental income and the relevant depreciation conditions are met. #### Exclusions - Deductions for certain second-hand depreciating assets in residential rental properties are limited unless an exception applies. - Private use and non-rental periods are excluded or apportioned. #### Calculation Work out decline in value under the relevant depreciation rules, then apportion for rental use. #### Records - Asset purchase records - Depreciation schedule - Rental availability records #### [ATO Rental properties guide 2026](https://www.ato.gov.au/forms-and-instructions/rental-properties-2026) Reviewed against the linked source on 28 July 2026. ### Rental capital works Construction and structural-improvement deductions for qualifying rental property capital works. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. Construction dates, asset type and any prior claims materially affect the result. Use the ATO rental-property guide before adding an amount. - Evidence summary: Keep construction records, dates, cost details and a capital-works schedule. #### Eligibility - The expenditure is qualifying capital works and the property is used to earn rental income. #### Conditions - The expenditure is qualifying capital works and the property is used to earn rental income. #### Exclusions - Do not claim capital works as an immediate repair. - Private or non-rental periods must be excluded or apportioned. #### Calculation Claim the statutory construction-write-off rate for the eligible construction type and dates, apportioned for rental use. #### Records - Construction invoices - Quantity-surveyor or capital-works schedule - Rental availability records #### [ATO Rental properties guide 2026](https://www.ato.gov.au/forms-and-instructions/rental-properties-2026) Reviewed against the linked source on 28 July 2026. ### Residential rental travel expenses Travel related to a residential rental property only where a statutory exception applies. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. This item is deliberately review-only because the general rule denies most residential rental travel claims. - Evidence summary: Keep travel records and evidence that the taxpayer satisfies the relevant exception. #### Eligibility - A specific statutory exception applies to the taxpayer and travel expense. #### Conditions - A specific statutory exception applies to the taxpayer and travel expense. #### Exclusions - Most individual investors cannot claim travel expenses relating to residential rental properties. - Private travel is excluded. #### Calculation Do not add an amount until the applicable exception is verified against the ATO rental-property guide. #### Records - Travel diary and receipts - Evidence for the exception #### [ATO Rental properties guide 2026](https://www.ato.gov.au/forms-and-instructions/rental-properties-2026) Reviewed against the linked source on 28 July 2026. ### Rental availability and vacant-land restrictions The period and purpose for which a property is rented or genuinely available can limit rental-property deductions. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. Genuine availability, private use and vacant-land rules materially change the result. Check the ATO rental-property guide before claiming. - Evidence summary: Keep advertising, listing, tenant, use and land-holding records that show when and why the property was available for rent. #### Eligibility - For ordinary rental expenses, the property is rented or genuinely available for rent for the claimed period. - Any vacant-land deduction satisfies the separate statutory requirements that apply to vacant land. #### Conditions - For ordinary rental expenses, the property is rented or genuinely available for rent for the claimed period. - Any vacant-land deduction satisfies the separate statutory requirements that apply to vacant land. #### Exclusions - A holiday home, private use or non-commercial rental arrangement can limit or deny deductions. - Costs of holding certain vacant land may not be deductible even where the land is intended for a future rental property. #### Calculation Apportion each expense to the eligible rental-income-producing period. Do not add a vacant-land amount until the statutory requirements are verified. #### Records - Rental listings and enquiries - Tenant and property-use calendar - Vacant-land evidence where relevant #### [ATO Rental properties guide 2026](https://www.ato.gov.au/forms-and-instructions/rental-properties-2026) Reviewed against the linked source on 28 July 2026. ### Current rental loss and negative gearing review Check the net rental result after all income, deductible expenses, ownership shares, private use and timing adjustments. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. This review confirms the overall rental result. Add the underlying deductible expenses separately so they are not counted twice. - Evidence summary: Keep a complete rental schedule, loan tracing, ownership records, invoices and rental-availability evidence. #### Eligibility - Deductible rental expenses exceed assessable rental income for the property or rental portfolio. - The property is rented or genuinely available for rent and each expense satisfies its own deduction rule. #### Conditions - Deductible rental expenses exceed assessable rental income for the property or rental portfolio. - The property is rented or genuinely available for rent and each expense satisfies its own deduction rule. #### Exclusions - Do not create a rental loss by including private, capital, acquisition, disposal or non-commercial family-use costs. - A capital loss on sale is not a rental loss and cannot reduce salary or wages. - Co-owners generally divide income and expenses according to legal ownership. #### Calculation For 2025-26 and 2026-27, calculate all assessable rent less deductible rental expenses. A net rental loss can generally reduce other assessable income, including salary, wages or business income. Any amount not absorbed is carried forward under the ordinary loss rules. #### Records - Rental income and expense schedule - Loan statements and tracing - Ownership shares - Private-use and availability calendar #### [ATO Rental properties guide 2026](https://www.ato.gov.au/forms-and-instructions/rental-properties-2026) Reviewed against the linked source on 28 July 2026. ### Residential negative gearing reform from 1 July 2027 Classify every residential ownership interest and calculate the enacted portfolio-wide loss quarantine that begins on 1 July 2027. - Category: Investment and property - Taxpayer types: individual, company - Income years: From 2027-28 - Rule status: review. The reform is enacted. Complete the classification and portfolio calculation for each year from 2027-28; do not assume a dwelling is excluded without checking the statutory definition and applicable legislative instrument. - Evidence summary: Keep acquisition contracts, build and occupancy records, property classification and any social or affordable housing evidence. #### Eligibility - You use or hold a residential dwelling as residential accommodation on or after 1 July 2027. - Across the covered residential portfolio, otherwise deductible amounts exceed related assessable residential income for the income year. - For a trust beneficiary, assessable trust income referable directly or through interposed partnerships or trusts to residential accommodation is included in the covered residential income calculation. #### Conditions - You use or hold a residential dwelling as residential accommodation on or after 1 July 2027. - Across the covered residential portfolio, otherwise deductible amounts exceed related assessable residential income for the income year. - For a trust beneficiary, assessable trust income referable directly or through interposed partnerships or trusts to residential accommodation is included in the covered residential income calculation. #### Exclusions - An ownership interest last acquired before 7:30 pm ACT legal time on 12 May 2026 is grandfathered. For a contractual acquisition, use the time the contract was entered into. - A new residential dwelling is excluded only if the requirements in the Minister's legislative instrument are met. A marketing description or first occupancy alone is not enough. - A dwelling used for a purpose prescribed by legislative instrument, including eligible social or affordable housing purposes, can be excluded where every instrument condition is met. - Widely held unit trusts, complying superannuation entities and fringe-benefit arrangements have specific exclusions. - Caravans, mobile tiny homes, other mobile homes, hotels, motels, inns, hostels, boarding houses, qualifying student accommodation, boats and other marine vessels are outside the statutory residential-dwelling definition. - A quarantined residential amount is not added to the CGT cost base or reduced cost base. #### Calculation From 2027-28, aggregate otherwise deductible amounts and assessable income across all covered residential dwellings. Reduce any covered-portfolio excess by net income from non-quarantined residential dwellings and by qualifying income-tax gains realised from residential dwellings held as revenue assets. The remaining excess is not deductible against salary, wages or unrelated income. It becomes a quarantined amount that first reduces deferred residential capital gains, then other residential capital gains, before the CGT discount and small-business concessions. Any unused amount carries forward, cannot enter the cost base or reduced cost base, and can be extinguished when the bankruptcy provisions apply. #### Records - Signed acquisition contract and exact contract date and time for every ownership interest - Construction, first-occupancy and use evidence - Separate annual income and expense schedules for covered and non-quarantined dwellings - Residential revenue-asset gain calculations - Carried-forward quarantined amount register #### [Treasury Laws Amendment (Tax Reform No. 1) Act 2026](https://www.legislation.gov.au/C2026A00049/latest) Reviewed against the linked source on 28 July 2026. ### Gifts and donations Money or property gifted to an eligible deductible gift recipient without a material benefit in return. - Category: Giving and super - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the DGR receipt or another acceptable record identifying the gift and recipient. #### Eligibility - The recipient is a deductible gift recipient. - The transfer is genuinely a gift of money or property and meets the applicable gift conditions. - You do not receive or expect a material benefit in return. #### Conditions - The recipient is a deductible gift recipient. - The transfer is genuinely a gift of money or property and meets the applicable gift conditions. - You do not receive or expect a material benefit in return. #### Exclusions - Raffle tickets, fundraising dinner tickets and other payments with a material benefit have different contribution rules. - Ordinary crowdfunding and non-DGR gifts are not automatically deductible. #### Calculation Claim the amount allowed for the gift type. Small cash donations have separate record-keeping rules, not an automatic entitlement. #### Records - DGR receipt or acceptable electronic record - Property valuation evidence where applicable #### [ATO gifts and donations](https://www.ato.gov.au/api/public/content/0-9eab54d3-6618-4bd4-aa96-a0c9fe7b130c) Reviewed against the linked source on 28 July 2026. ### Personal super contributions Personal contributions to a complying super fund where a valid notice of intent is acknowledged. - Category: Giving and super - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: review. Contribution caps, age, timing, total-super-balance and other consequences must be checked before claiming. - Evidence summary: Keep the contribution record, notice of intent and fund acknowledgement. #### Eligibility - The contribution is made to an eligible complying fund. - You meet the age and other eligibility conditions. - You give the fund a valid notice of intent and receive its acknowledgement before the relevant deadline. #### Conditions - The contribution is made to an eligible complying fund. - You meet the age and other eligibility conditions. - You give the fund a valid notice of intent and receive its acknowledgement before the relevant deadline. #### Exclusions - Employer or salary-sacrifice contributions are not personal contributions for this deduction. - A contribution that cannot be supported by a valid notice of intent cannot be claimed as a personal-super deduction. #### Calculation Claim the acknowledged amount in whole dollars, subject to the contribution caps and personal circumstances. #### Records - Contribution receipt - Notice of intent - Fund acknowledgement - Contributions-cap information #### [ATO personal super contributions](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/personal-super-contributions) Reviewed against the linked source on 28 July 2026. ### Foreign pension or annuity undeducted purchase price The deductible return-of-capital component of an eligible foreign pension or annuity. - Category: Finance and tax - Taxpayer types: individual - Income years: 2025-26 - Rule status: review. This rule is pension- and treaty-specific. Use an ATO determination where the deductible amount is unknown. - Evidence summary: Keep the foreign-pension details, personal-contribution evidence, calculation or an ATO determination. #### Eligibility - You receive a taxable foreign pension or annuity with an undeducted purchase price attributable to your personal contributions. - You have a valid calculation of the deductible annual amount or an ATO determination where one is required. #### Conditions - You receive a taxable foreign pension or annuity with an undeducted purchase price attributable to your personal contributions. - You have a valid calculation of the deductible annual amount or an ATO determination where one is required. #### Exclusions - Do not treat the whole foreign pension as a deduction. - Do not include a pension that is not taxable in Australia in this deduction calculation. #### Calculation Claim only the calculated deductible annual undeducted-purchase-price amount at the applicable return label. #### Records - Foreign pension statements - Contribution and purchase-price evidence - ATO determination or calculation #### [ATO foreign pensions and annuities instructions](https://www.ato.gov.au/mytax25ForeignPenAndAnnuity) Reviewed against the linked source on 28 July 2026. ### Project pool deduction A yearly deduction for qualifying project amounts that are directly connected with a taxable-purpose project and are not otherwise deductible. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. Project start, project life, recoupments and abandonment can materially change the amount. - Evidence summary: Keep the project-pool worksheet, project-life estimate, expenditure records, start date, abandonment details and foreign-exchange adjustments. #### Eligibility - The amount is a qualifying project amount connected with a project carried on for a taxable purpose. - The expenditure is not part of the cost of a depreciating asset and is not otherwise deductible. - The project has started to operate or an abandonment, sale or other statutory event permits a deduction. #### Conditions - The amount is a qualifying project amount connected with a project carried on for a taxable purpose. - The expenditure is not part of the cost of a depreciating asset and is not otherwise deductible. - The project has started to operate or an abandonment, sale or other statutory event permits a deduction. #### Exclusions - Do not pool private, capital acquisition or asset-cost amounts that fail the qualifying-project rules. - Do not claim the same expenditure under another deduction or capital-allowance provision. #### Calculation For a project that operates, calculate the yearly pool deduction using 200% divided by the project life for qualifying post-10 May 2006 project amounts, applied to the pool value. Apply abandonment, disposal, recoupment and foreign-exchange adjustments where relevant. #### Records - Project expenditure ledger - Project-life estimate - Project start and cessation evidence - Foreign-exchange calculation #### [ATO D13 project pool deduction](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Forestry managed investment scheme deduction Eligible payments to a qualifying forestry managed investment scheme where the statutory direct-forestry-expenditure and holding rules are satisfied. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep the formal scheme agreement, manager's 70% direct-forestry-expenditure statement, payment records, interest acquisition date and disposal evidence. #### Eligibility - You hold an interest in a qualifying forestry managed investment scheme and make the payment under a formal agreement. - The forestry manager confirms the scheme satisfies the 70% direct forestry expenditure test. - An initial participant satisfies the four-year holding rule unless an event outside their control applies; a subsequent participant claims only eligible ongoing payments. #### Conditions - You hold an interest in a qualifying forestry managed investment scheme and make the payment under a formal agreement. - The forestry manager confirms the scheme satisfies the 70% direct forestry expenditure test. - An initial participant satisfies the four-year holding rule unless an event outside their control applies; a subsequent participant claims only eligible ongoing payments. #### Exclusions - A subsequent participant cannot deduct the amount paid to acquire the forestry interest under this rule. - Borrowing costs, interest, stamp duty, GST, processing, marketing and post-threshold transport, handling or non-field stockpiling are excluded from the forestry deduction. #### Calculation Claim eligible initial and ongoing payments for an initial participant, or eligible ongoing payments for a subsequent participant, after applying the direct-forestry-expenditure and holding rules. #### Records - Scheme agreement - Forestry manager statement - Payment records - Holding and disposal dates #### [ATO D14 forestry managed investment scheme deduction](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Election expenses Eligible costs of contesting an election for an Australian parliament, local government body or certain other public offices. - Category: Finance and tax - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep nomination, advertising, travel, printing and campaign payment records together with the election details. #### Eligibility - You were a candidate for an eligible Australian government or public office election. - The expense was incurred in contesting that election and falls within the statutory election-expense rules. #### Conditions - You were a candidate for an eligible Australian government or public office election. - The expense was incurred in contesting that election and falls within the statutory election-expense rules. #### Exclusions - General political donations and party membership are not election expenses under this rule. - Private, reimbursed and non-candidate expenditure is excluded. #### Calculation Claim the eligible incurred election expenses after applying the office-specific statutory limit and reimbursement treatment. #### Records - Candidate nomination - Election expense invoices - Payment records - Reimbursement details #### [ATO D15 other deductions](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Sharing economy and marketplace expenses Income-producing expenses for platform or marketplace activity that is neither employment nor a business. - Category: Finance and tax - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep platform statements, receipts, usage records and a reasonable private-use apportionment. #### Eligibility - You earned assessable income through a sharing-economy platform or marketplace. - The activity is not carried on as a business and the expense directly relates to earning that assessable income. #### Conditions - You earned assessable income through a sharing-economy platform or marketplace. - The activity is not carried on as a business and the expense directly relates to earning that assessable income. #### Exclusions - Business expenses belong in the business schedule and employee expenses belong at the relevant work-expense label. - Private use, capital costs and reimbursed amounts are excluded or treated separately. #### Calculation Claim the direct income-producing portion of eligible expenses at the applicable other-deductions label. #### Records - Platform income statements - Expense receipts - Usage diary - Apportionment worksheet #### [ATO D15 other deductions](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Foreign exchange losses Deductible foreign-currency losses under the forex realisation and election rules. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep transaction dates, currencies, Australian-dollar conversions, elections and forex realisation calculations. #### Eligibility - A forex realisation event produced a deductible loss under the foreign-currency rules. - Any applicable election, 12-month rule, functional-currency or limited-balance account treatment has been applied. #### Conditions - A forex realisation event produced a deductible loss under the foreign-currency rules. - Any applicable election, 12-month rule, functional-currency or limited-balance account treatment has been applied. #### Exclusions - Do not treat a foreign-currency movement as deductible merely because an account value changed. - Private, exempt-income and capital amounts can be excluded or treated under another rule. #### Calculation Calculate the realised Australian-dollar loss under the applicable forex event and election, then reduce or defer it where a statutory exception applies. #### Records - Foreign-currency statements - Exchange rates and conversion method - Election records - Forex calculation #### [ATO D15 other deductions](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Debt deductions and thin capitalisation review Debt deductions not claimed elsewhere after applying thin-capitalisation, debt-deduction-creation and related integrity rules. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep financing agreements, related-party details, interest calculations, use-of-funds tracing and thin-capitalisation workpapers. #### Eligibility - The financing cost is a debt deduction connected with producing assessable income and is not claimed at another label. - The taxpayer has applied any relevant thin-capitalisation and debt-deduction-creation rules. #### Conditions - The financing cost is a debt deduction connected with producing assessable income and is not claimed at another label. - The taxpayer has applied any relevant thin-capitalisation and debt-deduction-creation rules. #### Exclusions - Do not claim private interest, principal repayments or an amount denied by a thin-capitalisation or integrity rule. - Do not duplicate rental, business or investment interest already claimed elsewhere. #### Calculation Start with the otherwise deductible financing cost, then apply use-of-funds apportionment, thin-capitalisation limits and debt-deduction-creation exclusions. #### Records - Loan agreements - Use-of-funds tracing - Related-party records - Thin-capitalisation calculation #### [ATO D15 other deductions](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Section 40-880 business capital expenditure A five-year deduction for qualifying business-related capital expenditure that is not otherwise recognised for income tax purposes. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep detailed invoices, business purpose, entity history and analysis showing why no other tax provision recognises the expenditure. #### Eligibility - The expenditure is capital in nature and relates to a current, former or proposed business in the way required by section 40-880. - The expenditure is not deductible and is not included in the cost of an asset or otherwise recognised under another tax provision. #### Conditions - The expenditure is capital in nature and relates to a current, former or proposed business in the way required by section 40-880. - The expenditure is not deductible and is not included in the cost of an asset or otherwise recognised under another tax provision. #### Exclusions - Do not use section 40-880 for an asset cost, CGT cost-base amount or expenditure specifically denied by another provision. - Private, domestic and exempt-income expenditure is excluded. #### Calculation Where section 40-880 applies, deduct 20% of the qualifying amount in the income year and each of the next four income years, subject to any immediate-deduction exception. #### Records - Detailed invoices - Business relationship analysis - Five-year deduction schedule - Entity and ownership records #### [ATO D15 other deductions](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Net personal services income entity loss An individual's deduction for an attributed net personal services income loss of a personal services entity. - Category: Finance and tax - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep the personal services entity calculation, contracts, attribution records and personal services income analysis. #### Eligibility - A personal services entity has a net personal services income loss attributable to your personal efforts or skills. - The attribution and personal-services-income rules make the loss deductible to you. #### Conditions - A personal services entity has a net personal services income loss attributable to your personal efforts or skills. - The attribution and personal-services-income rules make the loss deductible to you. #### Exclusions - Do not claim an entity's ordinary business loss under this label. - Amounts denied by the personal-services-income deduction limitations remain excluded. #### Calculation Calculate the entity's net PSI loss under the attribution rules and claim only the amount attributable and deductible to the individual. #### Records - Entity tax calculation - PSI attribution statement - Contracts and income analysis - Deduction limitation worksheet #### [ATO D15 other deductions](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Capital expenditure after ceasing primary production Eligible primary-production capital expenditure deductible after the relevant business has ceased. - Category: Finance and tax - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep cessation records, original expenditure evidence, asset schedules and the applicable capital-allowance calculation. #### Eligibility - You incurred eligible primary-production capital expenditure and later ceased the relevant business. - A capital-allowance provision continues to permit a deduction after cessation. #### Conditions - You incurred eligible primary-production capital expenditure and later ceased the relevant business. - A capital-allowance provision continues to permit a deduction after cessation. #### Exclusions - Do not claim private expenditure or an amount already deducted through another asset or capital-allowance rule. - A sale or disposal can trigger a balancing adjustment or CGT consequence instead of an ordinary deduction. #### Calculation Continue the eligible statutory capital-allowance deduction after cessation, adjusted for recoupment, disposal or balancing events. #### Records - Business cessation date - Original capital invoices - Asset and deduction schedule - Disposal records #### [ATO D15 other deductions](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Traditional security loss A deductible loss on disposal or redemption of a qualifying traditional security under section 70B. - Category: Investment and property - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep acquisition, redemption or disposal, income return and security-term records. #### Eligibility - The instrument is a traditional security for the statutory rules. - A disposal or redemption produced a deductible section 70B loss. #### Conditions - The instrument is a traditional security for the statutory rules. - A disposal or redemption produced a deductible section 70B loss. #### Exclusions - Do not claim a capital loss or ordinary investment decline again under this rule. - Private, exempt-income and non-qualifying securities are excluded. #### Calculation Calculate the section 70B loss using the security's acquisition cost, disposal or redemption proceeds and required adjustments. #### Records - Security terms - Acquisition and disposal statements - Section 70B calculation #### [ATO D15 other deductions](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Former small-business pool deduction A continuing simplified-depreciation pool deduction after the relevant business has ceased. - Category: Home and assets - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep the final business records, pool opening balance, disposal proceeds and prior-year pool schedules. #### Eligibility - You stopped carrying on the business but retain a balance in a valid small-business general pool. - The simplified-depreciation rules continue to permit a deduction for the pool balance. #### Conditions - You stopped carrying on the business but retain a balance in a valid small-business general pool. - The simplified-depreciation rules continue to permit a deduction for the pool balance. #### Exclusions - Do not claim assets or pool amounts already written off or transferred. - Disposal proceeds and balancing events must be reflected in the pool calculation. #### Calculation Continue the applicable small-business pool calculation, including disposal proceeds and any low-pool-value write-off available under the enacted rules. #### Records - Pool worksheet - Business cessation records - Asset disposals - Prior-year tax return #### [ATO D15 other deductions](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Education expenses against a taxable scholarship Self-education expenses directly connected with earning a scholarship that is included in assessable income. - Category: Work expenses - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the scholarship statement, course invoices, study records and direct-income connection. #### Eligibility - The scholarship is included in assessable income. - The education expense is directly connected with earning that taxable scholarship income. #### Conditions - The scholarship is included in assessable income. - The education expense is directly connected with earning that taxable scholarship income. #### Exclusions - Expenses against an exempt scholarship are not deductible under this rule. - HELP repayments, private living costs and reimbursed expenses are excluded. #### Calculation Claim the eligible expense directly connected with the taxable scholarship, applying the ordinary apportionment, asset and travel rules. #### Records - Taxable scholarship statement - Course invoices - Study and expense connection #### [ATO D15 other deductions](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Other statutory deduction not claimable elsewhere An unusual deduction specifically allowed by tax law that is not claimable at D1 to D14 or another return label. - Category: Finance and tax - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: review. Use this only after checking the explicit catalogue items. The deduction needs an identifiable legal basis and the correct return label. - Evidence summary: Keep the governing provision, calculation, payment or loss records and an explanation of why no other return label applies. #### Eligibility - A specific tax provision allows the deduction for your facts and income year. - The amount is not claimable at D1 to D14, against a specific income category or elsewhere in the return. #### Conditions - A specific tax provision allows the deduction for your facts and income year. - The amount is not claimable at D1 to D14, against a specific income category or elsewhere in the return. #### Exclusions - D15 is not a general catch-all for private, domestic, capital, reimbursed or unsupported expenses. - Do not duplicate an amount already claimed against work, investment, rental, business, foreign or other income. - Election expenses must be shown separately from other D15 deductions. #### Calculation Identify the precise statutory basis, calculate only the amount it permits for the income year and confirm D15 is the correct label before adding the amount. #### Records - Governing tax provision - Expense or loss evidence - Calculation - Return-label analysis #### [ATO D15 other deductions](https://www.ato.gov.au/api/public/content/0-21d6563a-b4b3-44c6-a425-b849c2f98334) Reviewed against the linked source on 28 July 2026. ### Employee wages, salaries, commissions and bonuses Worker payments that are directly connected with carrying on the business and satisfy PAYG withholding and reporting requirements. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep payroll records, STP reporting records, payment evidence and employment agreements. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The payment is salary, wages, commission, bonus or allowance for a worker in the business. - PAYG withholding and reporting obligations are met. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The payment is salary, wages, commission, bonus or allowance for a worker in the business. - PAYG withholding and reporting obligations are met. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - A payment that should have had PAYG withheld and reported can lose deductibility if those obligations are not met. - Owner drawings are not wages. #### Calculation Claim the deductible incurred amount after checking withholding, reporting and timing rules. #### Records - Payroll and payment records - STP and PAYG reporting evidence - Employment agreement #### [ATO deductions for payments to workers](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/payg-withholding/in-detail/removing-tax-deductibility-of-non-compliant-payments) Reviewed against the linked source on 28 July 2026. ### Business super contributions Employer super contributions paid for workers in carrying on a business. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep fund payment confirmations, payroll records and employee contribution details. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The contribution is made for an eligible worker and is paid to the relevant fund. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The contribution is made for an eligible worker and is paid to the relevant fund. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Unpaid accrued super is not treated the same as a paid contribution for deduction timing. - Private or owner contributions require separate analysis. #### Calculation Claim deductible contributions according to the applicable payment and timing rules. #### Records - Super-fund payment confirmation - Payroll records - Contribution schedule #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Fringe benefits tax and benefits provided to workers Income-tax deductions associated with taxable fringe benefits provided by an employer. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. FBT is a separate tax system with benefit-specific exemptions, concessions and reporting obligations. Review the ATO FBT guide before adding an amount. - Evidence summary: Keep benefit records, valuation workpapers, employee declarations, GST treatment and the lodged FBT return where required. #### Eligibility - The benefit is provided by an employer to an employee, associate or relevant former or future employee and the FBT rules are applied. - The expense and any FBT paid satisfy the relevant income-tax deduction rules. #### Conditions - The benefit is provided by an employer to an employee, associate or relevant former or future employee and the FBT rules are applied. - The expense and any FBT paid satisfy the relevant income-tax deduction rules. #### Exclusions - Salary and wages, employer super contributions and contractor benefits are not fringe benefits merely because they are employment-related. - Client entertainment and exempt or concessional benefits have separate deduction and FBT outcomes. #### Calculation Work out the fringe-benefit taxable value and FBT under the FBT rules. The income-tax deduction follows the applicable benefit, GST and FBT treatment. #### Records - Benefit register - Employee declarations - FBT valuation worksheet - FBT return and payment evidence #### [ATO fringe benefits tax guide](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/how-fringe-benefits-tax-works) Reviewed against the linked source on 28 July 2026. ### Contractor and consultant payments Payments for services directly connected with carrying on the business. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep invoices, ABN evidence, contracts and payment records. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The contractor service is genuinely connected with earning business income. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The contractor service is genuinely connected with earning business income. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Capital services must be treated under the relevant capital or asset rules. - Where no ABN is provided, withholding and reporting requirements affect deductibility. #### Calculation Claim the eligible business-service cost, subject to withholding and reporting rules where applicable. #### Records - Supplier invoice - ABN check or invoice - Contract - Payment evidence #### [ATO deductions for payments to workers](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/payg-withholding/in-detail/removing-tax-deductibility-of-non-compliant-payments) Reviewed against the linked source on 28 July 2026. ### Cost of sales and trading stock Purchases and stock adjustments for goods held for sale or exchange in the ordinary course of business. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep supplier invoices, stocktake records and opening and closing stock calculations. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The goods are trading stock or a direct cost of producing goods sold in the ordinary course of the business. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The goods are trading stock or a direct cost of producing goods sold in the ordinary course of the business. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Private stock withdrawals must be accounted for. - Capital equipment is not trading stock. #### Calculation Use the applicable trading-stock and cost-of-sales calculation for the income year. #### Records - Supplier invoices - Stocktake records - Opening and closing stock calculation #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business rent, rates and occupancy costs Rent and eligible premises costs for a space used to carry on the business. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the lease, invoices, payment records and a work-use apportionment for mixed premises. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The premises cost relates to space used in carrying on the business. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The premises cost relates to space used in carrying on the business. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Capital improvements, lease acquisition costs and private premises use require separate treatment. #### Calculation Claim the deductible business-use portion, applying prepayment and capital rules where relevant. #### Records - Lease - Rates or rent invoices - Payment records - Apportionment basis #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business advertising and marketing Promotion and customer-acquisition costs for the business's income-producing activities. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep campaign invoices, content descriptions and payment records. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The expenditure promotes the existing business or its assessable-income activities. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The expenditure promotes the existing business or its assessable-income activities. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Private sponsorship, entertainment and a capital asset or business acquisition cost are not ordinary advertising deductions. #### Calculation Claim the deductible business portion, considering prepayment treatment for longer campaigns or subscriptions. #### Records - Supplier invoices - Campaign records - Payment evidence #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business software, cloud services and subscriptions Recurring software licences, cloud services and business information subscriptions used in carrying on the business. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep subscription invoices, service descriptions and a business-use calculation if there is private use. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The service is used in carrying on the business. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The service is used in carrying on the business. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Private use must be excluded. - Capital software development, acquisition and some prepayments require separate treatment. #### Calculation Claim the deductible business-use portion in the correct income year under the applicable timing rules. #### Records - Subscription invoices - Service description - Business-use calculation #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business insurance Premiums for insuring business assets, liability, professional indemnity and revenue risks. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep the policy schedule, invoice, payment record and any apportionment calculation. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The policy protects the business or its income-producing activities. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The policy protects the business or its income-producing activities. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Personal, capital-benefit and private-use components are excluded or apportioned. - Prepaid premium timing rules can apply. #### Calculation Claim the deductible business-risk component for the relevant period. #### Records - Policy schedule - Premium invoice - Payment record - Apportionment calculation #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business phone, internet and utilities The business-use portion of communication and operating utility costs. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep bills and a reasonable business-use calculation for any mixed-use service. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The service is used to carry on the business. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The service is used to carry on the business. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Private household use is excluded. - Do not use an employee working-from-home fixed rate for a business expense. #### Calculation Total cost multiplied by a substantiated business-use percentage. #### Records - Bills - Business-use diary or calculation #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Bank fees and merchant charges Transaction, account and payment-processing fees incurred through business banking or merchant facilities. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep bank statements and merchant-provider reports. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The account or payment facility is used for business transactions. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The account or payment facility is used for business transactions. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Private account charges are excluded. - Interest and borrowing costs have separate rules. #### Calculation Claim the deductible business-use portion of the fees. #### Records - Bank statements - Merchant provider reports - Apportionment for mixed accounts #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business loan interest Interest on funds used to acquire business assets, finance operations or meet current business expenses. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep loan documents, interest statements and a tracing schedule showing how the funds were used. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The borrowed funds are used to earn assessable business income. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The borrowed funds are used to earn assessable business income. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Principal repayments are not deductible. - Private or mixed-purpose use must be excluded or apportioned. - Debt-deduction limitation rules can apply to some entities. #### Calculation Claim the deductible interest attributable to business-income-producing use. #### Records - Loan agreement - Interest statements - Funds-tracing schedule #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business borrowing expenses Eligible costs of arranging business finance, such as loan establishment fees, lender charges and security-registration costs. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. Timing can depend on the expense amount and the loan period. Confirm the calculation against the ATO business instructions. - Evidence summary: Keep lender invoices, loan documents and proof of the business purpose of the borrowing. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The borrowing is used for an income-producing business purpose. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The borrowing is used for an income-producing business purpose. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Private or capital-purpose borrowings are excluded or apportioned. - Borrowing expenses can be spread over time rather than claimed immediately. #### Calculation Apply the borrowing-expense timing rule for the loan term and amount, then apportion for business use. #### Records - Loan documents - Lender invoices - Funds-tracing schedule #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business travel Transport, accommodation and incidental costs for travel required to carry on the business. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep receipts, itinerary, business purpose and travel diary where required. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The travel is undertaken in the course of carrying on the business. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The travel is undertaken in the course of carrying on the business. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Private extensions, family costs and entertainment are excluded or apportioned. #### Calculation Claim the attributable business portion of eligible actual costs. #### Records - Receipts - Itinerary - Business purpose - Travel diary where required #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business motor car expenses Eligible car running costs for business travel, using the method available for the car and taxpayer. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep invoices, odometer records and a business-use calculation. A logbook is required for the logbook method. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The car is used for business travel and the available method is applied correctly. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The car is used for business travel and the available method is applied correctly. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Private travel and ordinary employee commuting are excluded. - Do not use the cents per kilometre method where it is not available to the taxpayer or vehicle. #### Calculation Use the applicable car method or actual-cost approach, then reduce for private use. #### Records - Odometer records - Logbook where used - Running-cost invoices - Business-use calculation #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Motorcycles, taxis, trucks and other business vehicles Actual operating costs for vehicles that do not fit the ordinary car-method rules. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep operating-cost invoices, odometer records and a business-use calculation. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The vehicle is used in carrying on the business. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The vehicle is used in carrying on the business. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Private use must be excluded. - Do not use cents per kilometre for a vehicle where the method is not available. #### Calculation Claim actual eligible operating and decline-in-value costs multiplied by business use. #### Records - Running-cost invoices - Odometer records - Business-use calculation #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business repairs and maintenance Repairs that restore income-producing business assets without creating a new or improved capital asset. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep itemised invoices that describe the work and the asset repaired. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The work restores an existing business asset used to produce income. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The work restores an existing business asset used to produce income. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Initial repairs, improvements and new assets are capital in nature and need different treatment. #### Calculation Claim the deductible business portion of a genuine repair or maintenance cost. #### Records - Itemised repair invoice - Asset details - Business-use evidence #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business depreciating assets Decline in value of capital assets used or installed ready for use in a taxable business purpose. - Category: Home and assets - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep purchase records, installation or first-use dates, effective-life basis and business-use calculation. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The asset is used or installed ready for a taxable purpose. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The asset is used or installed ready for a taxable purpose. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Private use must be excluded. - Simplified depreciation rules, low-value pools and immediate-deduction rules may change the calculation. #### Calculation Use the applicable depreciation method and effective life, then apportion for business use. #### Records - Purchase invoice - Date first used - Depreciation schedule - Business-use calculation #### [ATO guide to depreciating assets 2025](https://www.ato.gov.au/law/view/document?LocID=%22SAV%2FDEPRECIATING%2FATH7%22&PiT=99991231235958) Reviewed against the linked source on 28 July 2026. ### Small-business instant asset write-off A potential immediate deduction for the business-use portion of eligible assets under the small-business simplified-depreciation rules. - Category: Home and assets - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. The $20,000 threshold is enacted through 30 June 2026. The separate proposal for a permanent $20,000 threshold from 1 July 2026 was not enacted when this rule was checked on 28 July 2026. - Evidence summary: Keep asset invoice, date first used or installed, aggregated-turnover evidence and business-use calculation. #### Eligibility - The taxpayer is eligible to use the small-business simplified-depreciation rules. - The asset is first used or installed ready for use in the relevant income year and meets the enacted threshold and asset conditions. #### Conditions - The taxpayer is eligible to use the small-business simplified-depreciation rules. - The asset is first used or installed ready for use in the relevant income year and meets the enacted threshold and asset conditions. #### Exclusions - Private use is excluded. - Do not assume an announced threshold has become law. - Cars and excluded assets can have additional limitations. #### Calculation For 2025-26, an eligible small business using simplified depreciation can immediately deduct the business-use portion of an eligible asset costing less than $20,000 when first used or installed ready for use by 30 June 2026. For 2026-27, use the enacted threshold at the time of claim; the current base-law threshold is $1,000 while the permanent $20,000 proposal remains before Parliament. #### Records - Asset invoice - Date first used or installed - Aggregated-turnover evidence - Business-use calculation #### [ATO instant asset write-off](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off) Reviewed against the linked source on 28 July 2026. ### Small-business general pool Pooled depreciation for eligible small-business assets that are not immediately written off. - Category: Home and assets - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. Pool elections and prior-year treatment affect the calculation. Use the ATO depreciation guide before adding an amount. - Evidence summary: Keep asset register, opening-pool balance, additions, disposals and business-use calculations. #### Eligibility - The taxpayer validly uses the simplified-depreciation rules and the asset is allocated to the general small-business pool. #### Conditions - The taxpayer validly uses the simplified-depreciation rules and the asset is allocated to the general small-business pool. #### Exclusions - You cannot selectively apply only preferred elements of the simplified-depreciation rules. - Private use must be excluded. #### Calculation Apply the pool rate and first-year rules in force for the income year, including disposal and threshold adjustments. #### Records - Asset register - Pool worksheet - Business-use calculation #### [ATO guide to depreciating assets 2025](https://www.ato.gov.au/law/view/document?LocID=%22SAV%2FDEPRECIATING%2FATH7%22&PiT=99991231235958) Reviewed against the linked source on 28 July 2026. ### Business legal, accounting and professional fees Professional costs connected with operating an existing business and earning assessable income. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep detailed professional invoices identifying the matter and service. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The advice or service relates to operating the existing income-producing business. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The advice or service relates to operating the existing income-producing business. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Business establishment, acquisition, structural or capital legal costs need separate treatment. - Private legal advice is excluded. #### Calculation Claim the deductible revenue portion. Consider the tax-affairs rules where the service relates to tax compliance. #### Records - Detailed invoice - Matter description - Apportionment basis #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business staff training and development Training and development costs connected with the business or current employee duties. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep course invoices, attendee records and a note of the business purpose. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The training is connected with the business or current employee duties. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The training is connected with the business or current employee duties. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Private education or capital establishment training needs separate treatment. #### Calculation Claim the eligible business component, applying asset and travel rules to related expenses where relevant. #### Records - Course invoice - Attendee record - Business-purpose note #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business licences, registrations and memberships Recurring operational licences, permits and memberships used in carrying on an existing business. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep renewal invoices, permit records and the business connection. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The renewal, permit or membership is used in operating the existing business. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The renewal, permit or membership is used in operating the existing business. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - An initial acquisition or enduring right can be capital in nature and must be considered separately. #### Calculation Claim the deductible recurring business-use portion, subject to capital and prepayment rules. #### Records - Invoice - Registration or permit - Business connection #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business office supplies and postage Consumable stationery, postage and ordinary office supplies used in carrying on the business. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep supplier invoices and a business-use calculation for mixed-use items. #### Eligibility - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The consumable is used in carrying on the business. #### Conditions - The expense is incurred in carrying on an existing income-producing business. - Any private, capital or non-income-producing component is reasonably apportioned or excluded. - The consumable is used in carrying on the business. #### Exclusions - Do not include private drawings or personal expenses. - Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense. - Private office supplies are excluded. - A durable capital asset belongs under the asset rules rather than ordinary consumables. #### Calculation Claim the deductible business-use portion of the consumable cost. #### Records - Invoices - Business-use calculation where needed #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business bad debts Income debts written off as bad during the income year where the tax-law conditions are satisfied. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. Company continuity and ownership rules can affect bad-debt deductions. Review the current ATO business instructions before claiming. - Evidence summary: Keep debtor ledger, collection history and a decision recording when the debt was written off. #### Eligibility - The debt has been included in assessable income or satisfies the relevant money-lending rule. - The debt is genuinely bad and is written off during the income year. #### Conditions - The debt has been included in assessable income or satisfies the relevant money-lending rule. - The debt is genuinely bad and is written off during the income year. #### Exclusions - A provision, estimate or doubtful-debt allowance is not the same as a debt written off. - Continuity, ownership and business tests can affect company deductions. #### Calculation Claim the qualifying debt written off, after checking entity-specific loss and continuity rules. #### Records - Debtor ledger - Recovery history - Write-off approval #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business prepaid expenses The timing of a deduction for a business service paid in advance. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. The 12-month rule depends on taxpayer type, threshold and service period. Verify it before treating a prepaid cost as immediately deductible. - Evidence summary: Keep the agreement, invoice, payment record and service-period dates. #### Eligibility - The underlying expense is deductible and the payment is for something to be done in a later income year. #### Conditions - The underlying expense is deductible and the payment is for something to be done in a later income year. #### Exclusions - A payment for a completed service is not a prepaid expense. - Tax-shelter arrangements and other exceptions have separate rules. #### Calculation Generally spread the deduction across the eligible service period, unless excluded-expenditure or the 12-month rule applies. #### Records - Agreement - Invoice - Payment record - Service-period dates #### [ATO prepaid expenses rules](https://www.ato.gov.au/forms-and-instructions/deductions-for-prepaid-expenses-2022/general-information-about-prepaid-expenses) Reviewed against the linked source on 28 July 2026. ### Eligible business start-up costs Certain professional expenses of starting, restructuring or closing a business that can receive specific tax treatment. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. This area has specific statutory conditions. Review the current ATO business instructions before claiming. - Evidence summary: Keep professional invoices, business plans and details of the proposed or existing business. #### Eligibility - The expenditure is eligible under the business-related capital-expenditure rules and the taxpayer satisfies the entity and turnover conditions. #### Conditions - The expenditure is eligible under the business-related capital-expenditure rules and the taxpayer satisfies the entity and turnover conditions. #### Exclusions - Not all start-up or capital costs are immediately deductible. - Costs of acquiring a business or creating a capital asset require separate analysis. #### Calculation Use the relevant capital-expenditure provision and its timing rules. Do not treat every start-up cost as an immediate deduction. #### Records - Detailed invoices - Business purpose - Entity and turnover evidence #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Research and development tax incentive review A company tax-offset review for notional deductions relating to eligible, registered research and development activities. - Category: Finance and tax - Taxpayer types: company - Income years: 2025-26, 2026-27 - Rule status: review. This is a tax-offset review, not an ordinary expense deduction. It remains outside the worksheet deduction total. - Evidence summary: Keep contemporaneous activity records, hypotheses, experiments, outcomes, AusIndustry registration, expenditure ledgers, total-expense and aggregated-turnover calculations, and apportionment workpapers. #### Eligibility - The claimant is an eligible R&D entity. Core activities must use a systematic progression from hypothesis through experiment, observation and evaluation to generate new knowledge where the outcome could not be known in advance. - A supporting activity must be directly related to a core activity. If it produces goods or services, directly relates to production or is otherwise listed by the legislation, its dominant purpose must be supporting the core activity. - The activities are registered with AusIndustry for the income year and the claimed notional deductions relate to those eligible activities. - Total eligible notional deductions are at least $20,000, unless the below-threshold amount is eligible expenditure to a non-associated registered research service provider or an eligible Cooperative Research Centre contribution. - The company completes the applicable R&D incentive schedule and company tax return labels. #### Conditions - The claimant is an eligible R&D entity. Core activities must use a systematic progression from hypothesis through experiment, observation and evaluation to generate new knowledge where the outcome could not be known in advance. - A supporting activity must be directly related to a core activity. If it produces goods or services, directly relates to production or is otherwise listed by the legislation, its dominant purpose must be supporting the core activity. - The activities are registered with AusIndustry for the income year and the claimed notional deductions relate to those eligible activities. - Total eligible notional deductions are at least $20,000, unless the below-threshold amount is eligible expenditure to a non-associated registered research service provider or an eligible Cooperative Research Centre contribution. - The company completes the applicable R&D incentive schedule and company tax return labels. #### Exclusions - Registration does not by itself make an activity or expenditure eligible. - Ordinary business activity, ineligible expenditure and unsupported overhead allocation must not be included. - Expenditure to an associate generally cannot produce the notional deduction until it is paid. - An amount used as a notional R&D deduction is not also claimed as an ordinary business deduction. #### Calculation Classify eligible activities first and calculate the related notional deductions. If aggregated turnover is below $20 million and the entity is not controlled by exempt entities, the refundable offset rate is the corporate tax rate plus 18.5 percentage points. Otherwise, the non-refundable offset starts with the corporate tax rate and adds an 8.5% premium for notional deductions up to 2% of total expenses and a 16.5% premium above that intensity. For notional deductions above $150 million, the excess receives only the corporate tax rate. Apply the below-$20,000 exceptions, associate-payment rule, feedstock, recoupment and other integrity adjustments before completing the schedule. #### Records - AusIndustry registration - Activity and experiment records - R&D expenditure ledger - Apportionment method - Aggregated turnover and total expenses - R&D incentive schedule #### [ATO research and development tax incentive](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/incentives-and-concessions/research-and-development-tax-incentive-and-concessions/research-and-development-tax-incentive) Reviewed against the linked source on 28 July 2026. ### Farm management deposit deduction A deduction for an eligible individual primary producer who makes a qualifying farm management deposit by the end of the income year. - Category: Finance and tax - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep the FMD provider statement, deposit date, primary-production income calculation and complete balance across all providers. #### Eligibility - You are an individual carrying on a primary production business in Australia when the deposit is made. - The deposit is held under a qualifying agreement for one individual owner with an eligible FMD provider and is made by 30 June of the income year. - The deductible amount does not exceed taxable primary-production income for the year. - The deposit is at least $1,000 and total FMD balances across all providers do not exceed $800,000. #### Conditions - You are an individual carrying on a primary production business in Australia when the deposit is made. - The deposit is held under a qualifying agreement for one individual owner with an eligible FMD provider and is made by 30 June of the income year. - The deductible amount does not exceed taxable primary-production income for the year. - The deposit is at least $1,000 and total FMD balances across all providers do not exceed $800,000. #### Exclusions - No deduction is available where taxable non-primary-production income exceeds $100,000 for the income year. - A company or partnership cannot own an FMD or claim this deduction, although an eligible individual partner or beneficiary may qualify. - A deposit repaid within 12 months generally loses concessional treatment unless a natural-disaster or severe-drought exception applies. Transfers between providers and qualifying reinvestments have separate timing rules. - Bankruptcy, death or ceasing primary production without recommencing within the statutory period can deny the deduction. #### Calculation The deduction is the eligible deposit made in the income year, limited to taxable primary-production income and the scheme limits. Previously deducted amounts repaid are assessable income, subject to the transfer, reinvestment, disaster and drought rules. #### Records - FMD provider statement - Deposit and repayment dates - Primary and non-primary production income - All-provider FMD balance #### [ATO farm management deposits scheme](https://www.ato.gov.au/forms-and-instructions/primary-producers-information-2022/farm-management-deposits-scheme) Reviewed against the linked source on 28 July 2026. ### Environmental protection expenditure Capital expenditure on qualifying environmental protection activities connected with a current or former income-producing activity. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep site reports, invoices, contamination or pollution evidence, activity history and recoupment records. #### Eligibility - The expenditure is incurred on a qualifying environmental protection activity for a site used, or formerly used, in an income-producing activity. - The dominant purpose is preventing, fighting or remedying pollution, or treating, cleaning up, removing or storing waste. #### Conditions - The expenditure is incurred on a qualifying environmental protection activity for a site used, or formerly used, in an income-producing activity. - The dominant purpose is preventing, fighting or remedying pollution, or treating, cleaning up, removing or storing waste. #### Exclusions - Land acquisition, construction of a building or structure and an environmental impact assessment are generally not deductible under this rule. - Private, domestic and unrelated capital expenditure is excluded. #### Calculation Claim qualifying environmental protection expenditure under the specific capital-expenditure rule, reduced for private or non-taxable use and adjusted for recoupments. #### Records - Environmental report - Detailed invoices - Site and business-use history - Recoupment records #### [ATO guide to depreciating assets 2025](https://www.ato.gov.au/law/view/document?LocID=%22SAV%2FDEPRECIATING%2FATH7%22&PiT=99991231235958) Reviewed against the linked source on 28 July 2026. ### Landcare operations Capital expenditure on qualifying landcare operations for Australian land used in primary production or another eligible rural business. - Category: Business operations - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep land-use, approved-plan, contractor, expenditure and non-taxable-use records. #### Eligibility - The land is in Australia and is used for primary production or an eligible taxable rural-land business other than mining or quarrying. - The work is a qualifying landcare operation, such as eligible pest, weed, erosion, salinity, drainage or approved fencing work. #### Conditions - The land is in Australia and is used for primary production or an eligible taxable rural-land business other than mining or quarrying. - The work is a qualifying landcare operation, such as eligible pest, weed, erosion, salinity, drainage or approved fencing work. #### Exclusions - Where the water-facility or carbon-sink-forest rule applies to the same expenditure, the statutory priority rule must be followed. - Private or non-taxable land use reduces the deduction. #### Calculation Claim qualifying capital expenditure in the income year incurred, reduced for non-taxable use and adjusted for any recoupment. #### Records - Land-use evidence - Approved land management plan where required - Invoices - Recoupments and private-use calculation #### [ATO landcare operations](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/primary-producers/livestock-and-other-assets/deductions-and-offsets-for-capital-expenditure/landcare-operations) Reviewed against the linked source on 28 July 2026. ### Water facilities, fencing and fodder storage assets Specific primary-production capital allowances for qualifying water facilities, fencing assets and fodder storage assets. - Category: Home and assets - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep construction or acquisition invoices, first-use dates, primary-purpose evidence, asset classification and recoupment records. #### Eligibility - The expenditure is incurred on constructing, manufacturing, installing or acquiring a qualifying asset primarily and principally for a primary production business on Australian land. - The asset meets the specific water-facility, fencing-asset or fodder-storage definition. #### Conditions - The expenditure is incurred on constructing, manufacturing, installing or acquiring a qualifying asset primarily and principally for a primary production business on Australian land. - The asset meets the specific water-facility, fencing-asset or fodder-storage definition. #### Exclusions - Stockyards, pens and portable fences are not fencing assets for this concession. - A second-hand commercial water facility can be excluded unless the no-prior-deduction condition is established. - Do not claim the same asset under simplified depreciation and the specific primary-production allowance. #### Calculation Apply the asset-specific primary-production deduction period and start-date rule, then reduce for non-taxable use and recoupments. #### Records - Asset invoice - First-use date - Primary-purpose evidence - Prior-owner evidence for second-hand water facilities #### [ATO Guide to depreciating assets 2025](https://www.ato.gov.au/law/view/document?LocID=%22SAV%2FDEPRECIATING%2FATH7%22&PiT=99991231235958) Reviewed against the linked source on 28 July 2026. ### Horticultural plants and grapevines Decline in value of eligible horticultural plants and grapevines used in a primary production business. - Category: Home and assets - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep establishment expenditure, first-commercial-season, effective-life, destruction and recoupment records. #### Eligibility - The plant or grapevine is owned and used in a primary production business to produce assessable income. - The establishment expenditure and first commercial season can be identified. #### Conditions - The plant or grapevine is owned and used in a primary production business to produce assessable income. - The establishment expenditure and first commercial season can be identified. #### Exclusions - Land, ordinary trading stock and expenditure already recognised under another capital-allowance rule are excluded. - Partnership expenditure can require allocation to partners rather than a partnership deduction. #### Calculation Calculate decline in value from the applicable start time using the statutory rate or effective-life treatment for the plant or grapevine. #### Records - Establishment invoices - First commercial season - Effective-life support - Ownership and partnership records #### [ATO Guide to depreciating assets 2025](https://www.ato.gov.au/law/view/document?LocID=%22SAV%2FDEPRECIATING%2FATH7%22&PiT=99991231235958) Reviewed against the linked source on 28 July 2026. ### Rural electricity and telephone connections Specific capital deductions for qualifying electricity supply or telephone line expenditure connected with eligible rural income-producing land. - Category: Home and assets - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep provider agreements, connection invoices, land-use evidence, ownership or lessee records and private-use calculations. #### Eligibility - The expenditure is incurred on a qualifying electricity connection or telephone line for eligible Australian land used to produce assessable income. - The taxpayer is the eligible land user, owner, lessee or other entity covered by the specific provision. #### Conditions - The expenditure is incurred on a qualifying electricity connection or telephone line for eligible Australian land used to produce assessable income. - The taxpayer is the eligible land user, owner, lessee or other entity covered by the specific provision. #### Exclusions - Private household use and expenditure recognised as the cost of another asset are excluded or apportioned. - Partnership expenditure can be allocated to partners under the specific rules. #### Calculation Apply the specific statutory write-off period and apportionment for the qualifying connection expenditure. #### Records - Connection agreement - Invoices - Land-use evidence - Ownership or lease records #### [ATO Guide to depreciating assets 2025](https://www.ato.gov.au/law/view/document?LocID=%22SAV%2FDEPRECIATING%2FATH7%22&PiT=99991231235958) Reviewed against the linked source on 28 July 2026. ### Taxation of financial arrangements deductions Losses and deductions from financial arrangements calculated under the TOFA accruals, realisation, fair-value, retranslation, hedging or financial-reports methods. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review - Evidence summary: Keep financial arrangement contracts, elections, tax timing calculations, accounting records and transition workpapers. #### Eligibility - The TOFA rules apply to the taxpayer or an election brings the financial arrangement within TOFA. - The selected statutory method produces a deductible loss or expense for the income year. #### Conditions - The TOFA rules apply to the taxpayer or an election brings the financial arrangement within TOFA. - The selected statutory method produces a deductible loss or expense for the income year. #### Exclusions - Do not claim the same financing loss under both TOFA and another interest, forex or investment rule. - Excluded short-term, private and other specifically excluded arrangements do not use this calculation. #### Calculation Calculate the gain or loss under the applicable TOFA method, including accrual, realisation, retranslation, fair-value, hedging and transitional adjustments. #### Records - Financial arrangement register - TOFA elections - Method calculation - Accounting and tax reconciliation #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Business and company tax losses Review whether a carried-forward business or company tax loss can be deducted in the current income year. - Category: Finance and tax - Taxpayer types: individual, company - Income years: 2025-26, 2026-27 - Rule status: review. This review prevents carried-forward losses from being mixed with current expense deductions in the workspace total. - Evidence summary: Keep prior-year returns, loss schedules, ownership and control records, business activity records and non-commercial-loss calculations. #### Eligibility - A tax loss was validly incurred and remains available after prior applications. - The taxpayer satisfies the applicable continuity, business continuity or non-commercial-loss tests. #### Conditions - A tax loss was validly incurred and remains available after prior applications. - The taxpayer satisfies the applicable continuity, business continuity or non-commercial-loss tests. #### Exclusions - A capital loss is not an ordinary tax loss and cannot reduce ordinary income. - A sole trader's non-commercial business loss can be deferred unless an objective test or Commissioner discretion applies. - Do not claim a company loss where ownership, control or business-continuity requirements are not met. #### Calculation Identify the available carried-forward tax loss, apply integrity and continuity tests, then deduct only the amount permitted against current assessable income. Retain any unapplied balance. #### Records - Prior-year tax returns - Loss register - Ownership and control records - Business continuity or non-commercial-loss tests #### [ATO business income and deductions](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business) Reviewed against the linked source on 28 July 2026. ### Home-based business running expenses Additional running costs for a sole trader or partnership operating a business from home. - Category: Home and assets - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: conditional - Evidence summary: Keep bills, work-hours or usage records, and a reasonable calculation excluding normal private living costs. #### Eligibility - You operate a business from home and incur additional running costs because of that business use. #### Conditions - You operate a business from home and incur additional running costs because of that business use. #### Exclusions - Normal private living costs are excluded. - Occupancy costs have additional place-of-business conditions. #### Calculation Use a reasonable method that excludes private costs and is supported by records. #### Records - Bills - Usage or work-hours records - Calculation of business portion #### [ATO home-based business expenses](https://www.ato.gov.au/api/public/content/0-8551e46a-7b10-44c9-b5b4-7fc8bd0b32d5) Reviewed against the linked source on 28 July 2026. ### Home-based business occupancy expenses Occupancy costs where part of a home has the character of a place of business. - Category: Home and assets - Taxpayer types: individual - Income years: 2025-26, 2026-27 - Rule status: review. Occupancy claims can affect the main-residence capital-gains-tax outcome. Review the ATO guidance before adding an amount. - Evidence summary: Keep home-cost records, floor-area or use calculations, and evidence that the area is a place of business. #### Eligibility - The home area has the character of a place of business, such as being clearly identifiable, not readily adaptable for private use, used exclusively or almost exclusively for business, or regularly visited by clients. #### Conditions - The home area has the character of a place of business, such as being clearly identifiable, not readily adaptable for private use, used exclusively or almost exclusively for business, or regularly visited by clients. #### Exclusions - A general study or desk in a living area usually supports running expenses rather than occupancy expenses. - A claim can affect capital-gains-tax treatment on sale of the home. #### Calculation Claim only the eligible business-use portion of occupancy costs after considering the capital-gains-tax consequences. #### Records - Home-cost records - Floor-area or usage calculation - Evidence of place-of-business characteristics #### [ATO home-based business expenses](https://www.ato.gov.au/api/public/content/0-8551e46a-7b10-44c9-b5b4-7fc8bd0b32d5) Reviewed against the linked source on 28 July 2026. ## Discovery files - [Concise AI index](https://deductit.com.au/llms.txt) - [XML sitemap](https://deductit.com.au/sitemap.xml) - [Crawler policy](https://deductit.com.au/robots.txt)