Does this expense really relate to your job?
The single biggest question in a work-related deduction is whether the expense has a close enough connection to how you actually earn your income. Just being asked by your employer to spend money isn't enough on its own. Here's a plain-English way to think it through.
The "close connection" test
For an expense to be deductible against your salary or wages, it has to have a genuine, direct link to the duties you're paid to perform. The clearer the connection between the cost and the way you do your job, the stronger the claim.
Quick self-check
- Would you still spend this money if you didn't do this job?
- Does the cost help you carry out your current duties (not a future or hypothetical role)?
- Is it something your employer would reasonably expect you to have or pay for?
- Can you explain the work purpose in one clear sentence?
If you can answer yes to most of those, you're probably in "directly related" territory. If you're mainly saying "my boss suggested it" or "it might help one day", that's a warning sign.
Examples that pass the test
Kai works on live construction sites and buys steel-cap boots that his employer requires. There's a direct link to the duties he's paid to do, and they're not ordinary shoes he'd wear off the job.
Ash's role requires more advanced SQL. Their employer confirms the skills are needed for the current position, and Ash pays for the course themselves. The self-education directly relates to their current income-earning duties.
Examples that don't
Rowan pays for a graphic design bootcamp because they'd like to change careers. Because the study isn't linked to their current income-earning role, it isn't deductible.
Lee attends a paid industry dinner "in case it leads to work". Without a direct link to their existing duties, the cost isn't claimable.
Why occupation matters
The ATO publishes occupation and industry guidance because what counts as "directly related" varies enormously between roles. A nurse's shoes, a chef's knives, a real estate agent's advertising and a teacher's classroom resources are all treated differently. That's why Night Tax always asks about your job first — so its deduction prompts match your actual duties.
How Night Tax helps
Once Night Tax knows your occupation and how you work, its AI uses tailored prompts to test each expense against the close connection rule. If a cost is borderline, it asks you a couple of clarifying questions instead of guessing. A registered tax agent reviews everything before lodgement.
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Night Tax always applies ATO rules on substantiation and compliance. AI suggestions are reviewed by a registered tax agent before lodgement.