Did you know you can claim a variety of work-related expenses as an IT Professional in Australia? Make sure you aren’t missing out on any eligible claims by reading our simple tax deduction guide.
These tax tips for IT professionals will help you lodge an accurate return that gets you the maximum refund you are entitled to.
Our Tax Return and Deduction Checklist for IT Professionals
We created our tax deduction checklist for IT professionals to make it easy and stress-free to lodge your return. Our guide will explain what you can and can’t claim and help you maximise your return.
Our simple tax deduction checklist for IT professionals will explain:
- The ATO’s rules for claiming deductions as an IT Professional
- What work-related expenses you can claim as an IT Professional
- What IT Professionals can’t claim in Australia
- Considerations for IT professionals when lodging their tax return
- Insider tax tips for IT professionals
What IT Professionals CAN and CAN’T Claim At a Glance
| Category | CAN Claim | CAN’T Claim |
| Vehicle Expenses | Work-related vehicle use, such as client meetings or sales calls, using the logbook method or cents per km method | Mileage driven getting from your home to the workplace |
| Clothing and Laundry Expenses | Cost of buying and cleaning specific uniforms with a distinct company logo and | Cost of work clothes or general business attire with no company emblems or cost of cleaning regular work clothes |
| Self-Education Expenses | Courses, training, or seminars related to career development | Courses unrelated to your current job or aimed at switching careers |
| Travel Expenses | Work-related travel, such as to an industry-specific conference or training | Personal travel or relocation costs |
| Home Office Expenses | A portion of running costs for working from a dedicated home office | Non-dedicated workspaces |
| Communication Expenses | Internet or phone expenses that are work-related | Personal use of phone or internet services |
IT Professionals: What You CAN Claim
The easiest way to know what you can claim as an IT professional is by following the ATO’s golden rules:
- You must have spent the money yourself and not received reimbursement
- The expense must directly relate to earning your income.
- You must provide proof of the purchase (such as a receipt)
When reading through these work-related deductions for IT Professionals, be sure the expenses fall within the above criteria.
Vehicle and Travel Expenses
- Expenses related to using your vehicle to drive to meetings or attend client visits (use the cents per km method or keep a valid logbook)
- Costs for work-related travel that requires you to stay overnight (flights, accommodation, etc.)
Home Office Expenses
- A portion of the running costs (heating, cooling, electricity) if you have a dedicated home office
- Depreciation of office furniture, phones, computers, and other equipment
Communication Expenses
- A portion of work-related phone and internet bills
Marketing and Advertising Costs
- Costs for online ads, professional website, and promotional materials
- Business cards
Office Supplies and Equipment
- Office supplies, such as planners or stationary
- Software subscription fees
- Graphic design tools
- Analytic tools
Note: For items over $300, you need to calculate the depreciation cost
Tax Agent Fees
- The cost of hiring a professional to prepare and lodge your tax return is deductible
Development and Self-Education Expenses
- Enrolling in a seminar, workshop, or course, such as a new software program, that is required for your career
- Internet or phone charges related to work
- Work equipment you purchase yourself, such as modems or laptops
- Union or professional fees
- Industry-specific publications, journals, online subscriptions, or magazines
Clothing Expenses
- Buying or renting distinctive uniforms with company logos
- Laundering or repairing required uniforms
For a printable version of our IT Professionals tax checklist, download our guide here: IT Professional Tax Checklist.
Need a tax deduction checklist for a different career? Browse our tax return checklists for various careers here: Tax Return Checklists – Industry-Specific Guides to Tax.
IT Professionals: What You CAN’T Claim
- Self-education expenses that are not directly related to earning your income, such as a course related to switching careers
- Uniforms that do not include anything unique to your work, such as a company logo, or everyday business clothing
- Mortgage, rent, or insurance costs, even if you work from home
- Everyday business clothing without company emblems
- Grooming and personal care costs
- Childcare fees
- Travel costs from your home to the workplace
- Entertainment and social events or work parties
- Traffic fines, late fees, parking tickets, speeding fines, or other violations while driving for work
- Career courses or training that do not pertain to your current career
- Any expense your employer has already reimbursed
- Home office expenses without a dedicated workspace
- Employer contributions to your superannuation fund
- Donations to non-registered charities
- Medical costs, life insurance premiums, prescription glasses, or medical treatments
- Driver’s licence fees
- Fitness and gym memberships
For exact rules on what IT Professionals can and can’t claim, we recommend the ATO’s page: IT professionals – income and work-related deductions | Australian Taxation
Things to Consider for Tax Returns for IT Professionals
Here are some considerations to make it as stress-free as possible to lodge your return as an IT Professional:
- Include all sources of income from the financial year (wages, salary, bonuses, commissions, etc.)
- Stay informed on ATO’s current tax laws
- If you claim vehicle expenses for work-related travel, maintain an accurate logbook (learn more here: Car Logbook for Tax: A Guide to Tax-Smart Record Keeping)
- Get familiar with the ATO app, which is full of helpful tax tools such as their free recording-keeping tool: myDeductions tool
- Keep a designated area for storing bank statements, receipts, invoices, and credit card statements for work-related expenses
- Do not claim a work-related expense if you were reimbursed for it
- Consider lodging your return by the end of July so you aren’t stuck trying to file last minute
4 Tax Tips for IT Professionals
Here are 4 insider tax tips for IT professionals:
- #1. Work with a registered tax professional
- #2. Keep detailed proof and accurate records of all work-related expenses
- #3. Do not claim any expenses you receive reimbursement for
- #4. Correct any mistakes right away
IT Professional Tax Tip #1. Register with a Tax Professional
We know the rules and regulations surrounding taxes can be overwhelming to understand. The thought of making a mistake and losing good standing with the ATO can be stressful. Registering with a tax professional can take all that weight off your shoulders.
Our goal is to make lodging a return something you look forward to rather than dreading. We take all the stress and worry out of tax season and replace it with peace of mind. We’ve helped hundreds of clients lodge accurate returns with the maximum refund they were entitled to and we’d love to help with yours.
IT Professional Tax Tip #2. Maintain Detailed Expense Records
Even if you are eligible to claim an expense, you must have proof. Without proof, such as a receipt, credit card statement, or invoice, the deduction is not valid.
Save and organize all receipts, statements, and invoices for work-related expenses. You can keep physical copies for your records or take photos to maintain digital records.
IT Professionals Tax Tip #3. Do Not Claim Expenses You Receive Reimbursement For
We emphasize this tax tip often: Do NOT claim an expense if you were reimbursed for it.
Claiming an expense you were reimbursed for is an inaccurate claim. This puts you at risk of fines and penalties from the ATO.
To maintain good standing with the ATO:
- Always provide clear proof of any expenses
- Make sure it is something you purchased yourself
- Make sure you did not receive any reimbursement
IT Professionals Tax Tip #4. Correct Mistakes Immediately
Mistakes happen and the ATO understands this. Notifying them immediately and making sure the mistake is rectified will help minimise fees and penalties.
If you file your tax return yourself and notice a wrong address, misspelling, or incorrect expense, contact the ATO or a tax professional immediately.
To avoid tax mistakes in the first place, consider registering with a tax professional. Our licensed tax specialists guarantee a return that is 100% and lodged on time.
Learn tips to avoid common tax mistakes with our guide here: Tax Filing Errors to Dodge: Expert Tips for Avoiding Common Mistakes.
Hand the Hard Work Over to Our Tax Accountants
Our goal is to help Australians understand that tax season doesn’t have to be stressful. Our Australian tax accountants guarantee:
- A 100% accurate return that is compliant with all ATO regulations
- The maximum refund you are entitled to
- Convenient, stress-free online tax preparation in just a few easy steps
Contact us to get your instant online tax refund in just a few simple steps. Get in touch Email our licensed tax professionals at support@taxreturn.com.au, phone us on 0499 829 829 (0499 TAX TAX), or fill out our online contact form.
