Software engineers, data analysts and cybersecurity specialists often pay for their own gear: a second monitor, a cloud certification exam, a password manager, extra data for hotspotting. Some of that is deductible. A lot of what people claim, such as the daily commute or a laptop the employer supplied, is not.
This guide covers what employed IT professionals can claim in their 2025-26 tax return, which is being lodged now, and what changes in 2026-27 when the new standard deduction starts. It follows the ATO IT professionals guide and the ATO pages on equipment, self-education and working from home, and every figure was checked on 9 October 2026.
It is written for salaried developers, analysts, engineers, support staff and security specialists. If you contract through your own ABN or company, the rules are different, and our personal services income guide is the better place to start. Our work-related deductions overview covers the basics that apply to every employee.
Key takeaways
- Equipment costing $300 or less, used mainly for work and not part of a set costing more, can be claimed in full. Dearer items are claimed over their effective life.
- Working from home: fixed rate of 70c per work hour, which already includes internet, phone, energy and stationery.
- Certifications and courses are deductible when they relate to your current role. Study to change career is not.
- Car: 88c per km for 2025-26 and 91c per km for 2026-27, up to 5,000 km. Home to your normal workplace is private, even at night.
- Employer-supplied laptops and phones, and anything reimbursed, cannot be claimed.
- From 2026-27, a standard deduction of up to $1,000 applies automatically; claims above it need receipts for every work expense.
IT professional deductions at a glance
| Expense | Claimable? | Main condition |
|---|---|---|
| Laptop, monitor, keyboard, docking station | Yes, work share | Over $300 claimed over effective life |
| Software, apps, VPN, anti-virus subscriptions | Yes, work share | Used for your work |
| Certifications, courses, conferences | Yes | Linked to your current IT role |
| Phone and internet | Yes, work share | 4-week record of work use, or covered by the 70c rate |
| Union and professional association fees | Yes | You paid and were not reimbursed |
| Technical or professional publications | Yes | Related to your work |
| Home to normal workplace travel | No | Private, even for after-hours call-outs |
| Office clothing, music streaming, fines | No | Private expenses |
Source: ATO IT professionals deductions for work expenses, assets costing $300 or less, fixed rate method and D1 work-related car expenses 2026, checked 9 October 2026.
What equipment and software can IT workers claim?
Computers, laptops, monitors, printers and separately bought peripherals such as a mouse, keyboard, docking station or cables can be claimed for the share you use them for work. Software counts too, including apps, subscriptions, anti-virus, anti-spyware and VPNs.
How you claim depends on cost. Under the ATO $300 rule, an item costing $300 or less can be claimed in full in the year you buy it if you use it mainly for work and it is not part of a set, or a group of identical items, costing more than $300 in total. Anything dearer is claimed through decline in value over its effective life.
| Item you paid for | Example cost | How it is claimed |
|---|---|---|
| Wireless mouse used 90% for work | $80 | Full cost in the year bought |
| Second monitor used mainly for work | $280 | Full cost in the year bought |
| Annual anti-virus subscription | $149 | Claimed in the year paid |
| Laptop used 80% for work | $2,400 | Decline in value over effective life, 80% of each year |
| Laptop supplied by your employer | Nil | No deduction |
You can also claim the work share of repairs and insurance for equipment you own, and interest on money borrowed to buy it.
Can you claim certifications, courses and conferences?
Yes, when they relate to the job you have now. The ATO self-education rules allow a deduction where the study maintains or improves skills you need in your current role, or is likely to increase your income from it. The ATO example for IT is learning new software your job requires.
It is not deductible if it only relates generally to your work or helps you get a new job. The ATO example is a software programmer studying project management. Fees paid or reimbursed by your employer cannot be claimed either.
For seminars, conferences and training, you can claim registration costs and travel to the venue, plus accommodation and meals if you need to stay overnight. Our self-education expenses guide covers the detail.
How do phone and internet claims work?
You can claim only the work-related share. For an itemised mobile bill, work out your work-use percentage over a continuous 4-week period and apply it to the year. For home internet, a common basis is data used for work as a share of total household data over 4 weeks.
For example, if your household uses 240 GB in 4 weeks and 48 GB of it is for work, your work share is 20%. On a $60 monthly plan, that is $12 a month, or $132 over 11 working months. Private calls, set-up costs and anything your employer pays are not deductible.
How do you claim working from home?
Most IT workers spend some days at home. The ATO fixed rate method lets you claim 70c for every hour you work from home. That rate covers energy, internet, mobile and home phone, and stationery, so you cannot claim those separately. You need a record of the actual hours you worked at home, such as a timesheet or calendar.
Equipment and furniture are separate. You can claim the decline in value of a desk, chair or monitor you bought on top of the fixed rate. You cannot claim coffee, tea, children’s devices or anything your employer paid for. Our home office deductions guide compares the fixed rate with the actual cost method.
Can you claim car and travel costs?
Normal trips between home and work are private, even if you work unusual hours. The ATO IT guide gives the example of travelling at night to reboot servers. You can claim trips between two separate jobs on the same day, between workplaces for the same employer on the same day, and from home to an alternative workplace such as a client site.
Use either the cents per km method (88c for 2025-26, 91c for 2026-27, up to 5,000 km) or a logbook. With either method you cannot also claim fuel, servicing or insurance for that car. If your employer pays a car allowance, it is income and you claim your own expenses, as the ATO income and allowances page explains. An on-call allowance is income but does not give you a deduction on its own.
What changes in 2026-27?
From the 2026-27 return, Australian residents with salary or wage income get a standard deduction of up to $1,000 without receipts. Work expenses such as equipment, working from home and car costs reduce it dollar for dollar. Union and professional association fees do not, so you claim those on top.
If your work expenses come to more than $1,000, you claim the actual amounts and need written evidence for all of them. The $300 no-receipt limit no longer applies from 1 July 2026. The ATO guidance relies on a draft ruling, LCR 2026/D5, so details may change.
Worked example: a software engineer in 2025-26
Sam earns $110,000 as a software engineer and works from home two days a week. In 2025-26 he paid for these himself and was not reimbursed:
- Working from home: 46 weeks x 2 days x 8 hours = 736 hours x 70c = $515.20
- Cloud certification exam for the platform his team uses: $450
- Second monitor, used mainly for work: $280
- Professional association membership: $300
Total: $515.20 + $450 + $280 + $300 = $1,545.20. He does not claim his internet or mobile separately because the 70c rate covers them.
At his marginal rate of 30% plus the 2% Medicare levy, the tax saving is $1,545.20 x 32% = $494.46. A $2,400 laptop he bought would be claimed separately over its effective life.
Rule of thumb: If your employer supplied it, paid for it or reimbursed it, it is not your deduction. If it is for a job you do not have yet, it is not deductible either.
Common mistakes IT professionals make
- Double claiming internet: claiming home internet on top of the 70c fixed rate.
- Writing off expensive gear at once: only items costing $300 or less can be claimed in full; a $2,400 laptop is depreciated.
- Claiming employer-supplied devices: no deduction for a laptop or phone your employer provides.
- Career-change study: a course aimed at a different role, such as moving from programming into project management, is not deductible.
- Mixing car methods: using cents per km and also claiming fuel or servicing for the same car.
FAQ about tax deductions for IT professionals
Can I claim my AWS, Azure or security certification?
Usually yes, if the certification maintains or improves the skills you need in your current IT job, or is likely to increase your income from it. Exam fees, course fees and study materials can be claimed. It is not deductible if it is aimed at moving into a different kind of job, or if your employer paid or reimbursed the cost.
Can I claim my home internet as well as the 70c rate?
No. The fixed rate of 70c per work hour already covers internet, phone, energy and stationery, so you cannot claim those separately as well. If you would rather claim internet on its own, use the actual cost method and work out your work-use share from a 4-week representative record of household use.
Can I claim a laptop my employer gave me?
No. You cannot claim decline in value or running costs for equipment your employer supplies, or anything your employer pays for or reimburses. You can only claim the work share of equipment you bought yourself. A laptop costing more than $300 is claimed over its effective life, not all at once.
Can I claim travel when called out at night to fix a server?
Not if you are travelling from home to your normal workplace. The ATO says normal home-to-work trips are private even when you work unusual hours, such as travelling at night to reboot servers. Trips between two workplaces, or from home to an alternative workplace, can be claimed.
Do I need receipts for my 2026-27 claims?
From 2026-27 a standard deduction of up to $1,000 applies automatically. If your work expenses come to less than that, you can take the standard deduction without records. If you claim more, you need written evidence for every work expense you claim, because the old $300 no-receipt limit no longer applies.
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This article is general information only and is not personal tax or legal advice. Figures and rules were checked against the ATO IT professionals guide, self-education, seminars and training, assets costing $300 or less, working from home, car expense and standard deduction pages on 9 October 2026. Rates and thresholds change, so confirm the current position before acting.
