Recruiters and HR staff spend plenty on the job: driving to client offices, a premium recruiting subscription, a short course in workplace investigations, the hours spent screening candidates from home. Some of that is deductible. Client lunches, networking nights and business suits are not, even though they feel like work.
This guide covers what employed HR and recruitment professionals can claim in their 2025-26 tax return, which is being lodged now, and what changes for 2026-27 when the new standard deduction starts. It follows the ATO recruitment consultants guide and, for HR roles, the ATO office workers guide, and every figure was checked against ATO pages on 9 October 2026.
It is written for salaried recruitment consultants, talent acquisition specialists, HR coordinators, advisers and managers. Our work-related deductions overview covers the rules every employee needs to know.
Key takeaways
- Car trips in the course of your work, such as office to a client site: 88c per km for 2025-26 and 91c for 2026-27, up to 5,000 km.
- Home to your normal office is private, and so is parking at your normal workplace.
- Premium recruitment subscriptions, union and professional association fees can be claimed for the work-related portion.
- Client and candidate lunches, galas and networking evenings are entertainment and not deductible.
- Working from home: fixed rate of 70c per work hour, with a record of actual hours.
- From 2026-27, a standard deduction of up to $1,000 applies automatically, and claims above it need written evidence for every work expense.
HR and recruitment deductions at a glance
| Expense | Claimable? | Main condition |
|---|---|---|
| Car trips between workplaces or to an alternative workplace | Yes | Not home to your normal office |
| Parking and tolls on work trips | Yes, work share | Not parking at your normal workplace |
| Premium recruitment subscriptions | Yes, work share | Not paid or reimbursed by employer |
| Union and professional association fees | Yes | You paid and were not reimbursed |
| Courses, seminars, conferences | Yes | Relate to your current role |
| Phone, internet, working from home | Yes, work share | Records of work use or hours |
| Business lunches, networking events | No | Entertainment |
| Suits, grooming, flu shots | No | Private, even if expected by employer |
Source: ATO recruitment consultants deductions, office workers deductions, fixed rate method and D1 work-related car expenses 2026, checked 9 October 2026.
Can recruiters claim car, parking and travel costs?
Yes, for trips you make in the course of your work. You can claim using your own car to travel between workplaces for the same employer on the same day, between separate jobs on the same day, and from home directly to an alternative workplace such as a training venue. A day of driving from your office to client sites and back fits within the ATO rule that work kilometres are those travelled in the course of earning your income.
Trips between home and your normal office are private, even if you live far away, work late or work split shifts. Parking at your normal workplace is private too, as are taxis, ride share or public transport from home to work.
Use the cents per km method or a logbook, not both. With either, you cannot also claim fuel, servicing or insurance for that car. If you travel and stay overnight for work, the ATO overnight travel rules let you claim accommodation, meals, fares and incidentals your employer did not pay.
Which client and candidate costs are deductible?
This is where many recruiters go wrong. The ATO lists business lunches, galas and networking evenings as entertainment or social functions that employees cannot claim. The test is not whether it helped you win a placement.
| Cost | Deductible? | Why |
|---|---|---|
| Driving from your office to a client site | Yes | Travel in the course of your work |
| Parking at the client site | Yes | Work-related trip |
| Parking at your normal office | No | Private commuting cost |
| Coffee or lunch with a candidate | No | Entertainment |
| Ticket to an industry awards night | No | Social function |
| Premium recruitment subscription | Yes, work share | Used to earn your income |
Source: ATO recruitment consultant expenses and car expenses pages.
Can you claim subscriptions, memberships and equipment?
The ATO recruitment guidance lists premium recruitment subscriptions, such as LinkedIn Recruiter Lite, as claimable for the work-related portion. Union and professional association fees, including HR institute memberships, are deductible, as are technical or professional publications.
For equipment such as a headset, monitor or laptop, the ATO $300 rule applies. An item costing $300 or less that you use mainly for work, and that is not part of a set costing more, can be claimed in full. Dearer items are claimed over their effective life. Employer-supplied laptops and phones cannot be claimed. Phone and internet costs are claimable for the work share, backed by a 4-week record of work use.
Can HR and recruitment staff claim study?
Yes, when it relates to the job you have now. Under the ATO self-education rules, a course, seminar or conference is deductible if it maintains or improves skills you need in your current role, or is likely to increase your income from it.
It is not deductible if it only relates generally to your job, or is aimed at a new career. The ATO examples are a recruitment consultant studying to become an engineer, and an office assistant studying a Bachelor of Business. An HR adviser doing a short course in employment law or workplace investigations is the kind of study that usually qualifies. Our self-education expenses guide has more examples.
How do you claim working from home?
Many HR and recruitment roles are hybrid. The ATO fixed rate method lets you claim 70c per hour worked from home, covering energy, internet, phone and stationery. You need a record of the actual hours you worked at home, such as a timesheet or calendar. You cannot claim coffee, tea, children’s devices or anything your employer paid for. Our home office deductions guide compares this with the actual cost method.
What about commissions, allowances and 2026-27?
Commissions and bonuses are part of your salary and wages and appear on your income statement. A car allowance is income too, and you claim your actual car costs, not the allowance amount. Reimbursements are not income, and you cannot claim the reimbursed cost, as the ATO income and allowances page explains.
From the 2026-27 return, Australian residents with wage income get a standard deduction of up to $1,000 without receipts. Work expenses reduce it dollar for dollar, but union and professional association fees do not. If your work expenses exceed $1,000, you claim the actual amounts and need written evidence for all of them. The guidance relies on draft ruling LCR 2026/D5 and may change. Our guide to claims without receipts explains the 2025-26 rules.
Worked example: a recruitment consultant in 2025-26
Mia earns $90,000 in salary plus $15,000 in commission, a total of $105,000. In 2025-26 she paid for these herself and was not reimbursed:
- Car trips from her office to client sites: 1,800 km x 88c = $1,584
- Parking at client sites: $240
- Professional association membership: $450
- Industry conference registration in her home city: $350
- Working from home one day a week: 46 weeks x 7.5 hours = 345 hours x 70c = $241.50
Total deductions: $1,584 + $240 + $450 + $350 + $241.50 = $2,865.50.
At her marginal rate of 30% plus the 2% Medicare levy, the tax saving is $2,865.50 x 32% = $916.96. She did not claim client lunches, her suits or parking at her own office.
Rule of thumb: If it feels like hospitality, networking or looking the part, it is almost always private. If it is travel, tools or training for the job you do now, it may be deductible.
Common mistakes HR and recruitment professionals make
- Claiming client lunches: entertainment is not deductible for employees, even if it led to a placement.
- Claiming office parking: parking at your normal workplace is private.
- Claiming business attire: suits and grooming are conventional and private.
- Double claiming internet: it is already included in the 70c fixed rate.
- Claiming a career-change course: study aimed at a new profession is not deductible.
FAQ about tax deductions for HR and recruitment professionals
Can I claim lunch with a client or candidate?
No. The ATO recruitment consultant guidance says entertainment and social functions, such as business lunches, galas and networking evenings, are not deductible for employees. This applies even if the meeting led to a placement. If your employer reimburses the cost, it is not your deduction either, and the reimbursement is not your income.
Can I claim my LinkedIn premium subscription?
The ATO recruitment consultant guidance lists premium recruitment subscriptions, such as LinkedIn Recruiter Lite, as claimable for the work-related portion. If you also use it for personal job hunting or networking, apportion the cost. If your employer pays for the subscription or reimburses you, you cannot claim it.
Can I claim my work suits?
No. Business attire is conventional clothing, so it is not deductible even if your employer expects you to dress formally. Grooming, such as hairdressing, cosmetics and skin care, is also private. Only a compulsory, distinctive uniform or a non-compulsory uniform on the Register of Approved Occupational Clothing can be claimed.
Are my commissions taxed differently?
No. Commissions and bonuses are part of your salary and wages and appear on your income statement, so they are taxed at your normal marginal rate. A large commission in one year can push part of your income into a higher bracket, which also makes each dollar of legitimate deduction worth more.
Can HR staff claim an HR qualification?
Yes, if the course maintains or improves the skills you need in your current HR role, or is likely to increase your income from that role. Study that only relates generally to your job, or that is aimed at a new career, is not deductible. Fees paid or reimbursed by your employer cannot be claimed.
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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 recruitment consultants guide, office workers guide, self-education, working from home, overnight travel, car expense and standard deduction pages on 9 October 2026. Rates and thresholds change, so confirm the current position before acting.
