Work vs private: what you can't claim.
Some costs feel like they should be tax deductible, but they aren't. The ATO treats them as private, domestic or capital, no matter how work-adjacent they seem. Here's a friendly guide to the usual suspects — and how to handle costs that are a bit of both.
The everyday costs that aren't deductible
- Your normal drive between home and work
- Everyday clothing, even if you only wear it at the office
- Buying your lunch or coffee during the workday
- Childcare so you can go to work
- Haircuts, makeup and general grooming
- Fines and infringements (including parking tickets while working)
- Gym memberships (unless fitness is a genuine occupational requirement)
- Buying your own drinks at work functions
Why the commute isn't claimable
Travelling from home to your regular workplace is treated as private travel — it puts you in a position to earn income rather than being part of earning it. Work travel between jobs, to a client site, or carrying bulky equipment you can't leave at work can still be claimable.
Priya drives 25km to her main office each day (private — not deductible). During the day she then drives 40km to visit two clients before returning to the office. That 40km of client travel is work-related and can be claimed.
Ordinary clothing is private
Even if your boss says "wear something smart", regular business clothes, suits and plain shoes are private. Only compulsory uniforms with distinctive branding, occupation-specific clothing (like chef whites) or protective gear generally qualify.
Capital vs revenue
If you buy a bigger item that lasts more than a year — a laptop, a power tool, office furniture — it's usually a capital asset. You typically claim depreciation over its effective life rather than the full cost in one year. Night Tax AI works this out automatically once you tell it what you bought.
Mixed-use expenses
Lots of costs are a blend of work and private. You can still claim the work-related portion, but you need a reasonable method to work out the percentage.
- Phone plans: keep a 4-week diary of work vs personal calls, texts and data
- Home internet: base the claim on how much you use it for work
- Laptops and tablets: apportion based on work vs personal use
- Cars: use a valid logbook or the cents-per-kilometre method
- Home office: use the fixed rate method or the actual cost method
If your employer covers or reimburses a cost, it isn't yours to claim. Night Tax always asks so you don't accidentally double up.
How Night Tax keeps you on the right side of the line
The AI is trained to spot mixed-use situations and prompt you for the extra information needed to apportion correctly. If a cost is clearly private, it will tell you kindly and move on. A registered tax agent then 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.