Tax deductions for retail workers (2025-26)

If you work in retail — as a sales assistant, checkout operator, store manager, visual merchandiser or similar — you can claim work-related expenses you paid for yourself that directly relate to earning your income, as long as you have a record. The catch most retail workers run into is clothing: a plain shirt and black pants your employer makes you wear are not deductible, but a shirt with the store's logo embroidered on it usually is. This page sets out what the ATO says retail employees can and can't claim for the 2025-26 income year.

Before you claim: this is general information based on the ATO’s occupation guidance for 2025–26 returns — not tax advice. A deduction stands or falls on your circumstances and your records. A registered tax agent can advise on your situation.

Start with the number: your take-home pay

What retail workers can claim

Tick what you genuinely paid for this year, then print or save the list. Nothing leaves your device.

• Compulsory and registered uniforms — You can claim the cost to buy, hire, repair or replace a compulsory uniform your employer strictly enforces that distinctly identifies you with your employer or its products (for example, a shirt with the store name or logo). You can also claim a non-compulsory uniform only if your employer has registered it on the Register of Approved Occupational Clothing. You can't claim if your employer buys or replaces it for you.
• Protective clothing and footwear — You can claim clothing with genuine protective features worn to protect you from a real risk of injury or illness at work — for example, steel-capped boots, aprons that protect your clothing, or clothing for working in extreme temperatures. Plain jeans, drill shirts, shorts, socks and ordinary closed shoes are not protective.
• Laundering work clothing — You can claim the cost to wash, dry and iron eligible work clothing (protective, occupation-specific or a compulsory/registered uniform). The ATO accepts $1 per load for work clothing only, or 50c per load if mixed with personal items. If your total laundry claim is $150 or less you don't need receipts, but you must still show how you worked it out — it isn't automatic. Dry-cleaning and repairs are claimed at actual cost.
• Protective items and equipment — You can claim personal protective equipment such as gloves, face masks, hand sanitiser and protective glasses (anti-glare, safety glasses or goggles) where you use them to protect against a real and likely risk of injury or illness — for example, working in close proximity to customers. You can't claim if your employer supplies, pays for or reimburses these items.
• Work-related phone, data and internet — You can claim the work-related portion of using your own phone, data and internet — for example, calls and messages to staff or managers about rosters and leave. If your work use is incidental and the total claim is $50 or less, you don't need detailed records; above $50 you need evidence of what you spent and records (such as an itemised bill) showing your work use. You can't claim personal calls or if your employer provides the phone and pays for usage.
• Union and professional association fees — You can claim union fees and professional association fees you pay. If the amount is shown on your income statement or payment summary, that can be your evidence.
• Self-education and training that relates to your current job — You can claim self-education expenses (course or tuition fees, textbooks, stationery, and decline in value of study equipment) if the study directly relates to your current retail role and maintains or improves your skills, or is likely to increase your income from that role — for example, a Certificate III in Retail. You can't claim study that only relates generally to your work or is to get a new job, and HECS-HELP/HELP loan repayments are never deductible.
• Seminars, conferences and training courses — You can claim the cost of work-related seminars, conferences and training courses, including fares and registration. If you must travel and stay away overnight, you can also claim accommodation and meals. If the trip is part private (for example, a holiday tacked on), you can only claim the work-related portion.
• Overtime meals — You can claim a meal you buy and eat while working overtime, but only if you receive an overtime meal allowance under an industrial law, award or agreement, it is shown as a separate allowance on your income statement, and you include that allowance as income. You can claim up to the ATO's annual reasonable amount without keeping receipts (but must still show you spent the money).
• Work-related car and transport — You can't claim normal home-to-work trips, but you can claim work travel — for example, driving between two different jobs on the same day, between separate stores for the same employer, or from home to a work seminar. Use the cents per kilometre method (capped at 5,000 work km) or the logbook method, and keep records of your car use. Work-related taxi, ride-share, public transport and parking/tolls on work trips are also claimable.
• Overnight travel expenses — You can claim accommodation, meals and incidentals when your work genuinely requires you to travel and sleep away from home overnight — for example, attending an interstate conference. You can't claim where your employer provides or reimburses the cost, or where you weren't required to stay overnight.
• Working from home running costs — If you do genuine work from home (such as rostering or online training), you can claim the additional running costs. For 2025-26 use the fixed rate of 70c per hour, or the actual cost method (see the working-from-home note).

The retail-specific claims

• The logo test on uniforms — The line between deductible and not turns on distinctiveness. A shirt with the store's name or logo embroidered on it is a deductible compulsory uniform; the plain black pants and black shoes your employer also requires are still conventional clothing and not claimable, even though the same employer mandates them.
• Clothing you sell or model is not deductible — Sales assistants in clothing stores often have to buy and wear stock from the store. Even though it's a condition of the job, the ATO treats this as conventional clothing and it can't be claimed.
• Cold-work and similar allowances are taxed but not deductible — Allowances paid to compensate for unpleasant conditions (for example, a per-hour allowance for working in the cold/dairy section) must be declared as income, but they don't fund a deductible expense, so there's nothing to claim against them.
• Anti-glare / protective glasses for the shop floor — While prescription glasses and contacts are private, retail workers can claim protective glasses (anti-glare, safety glasses or goggles) used to reduce a genuine risk of injury or illness at work — a deduction specific to those exposed to such risks.
• First aid training for designated first-aiders — If you are your store's designated first aid person and need first aid training to assist in emergencies at work, you can claim the course (unless your employer pays for or reimburses it).

The claims that get bounced

• Conventional clothing — plain shirts, black pants, ordinary shoes — even if your employer requires a specific colour and you only wear them at work
• Clothing or stock you buy and wear from the store you work in, even when it's a condition of employment
• Normal trips between home and your regular workplace, even if you live far away or work weekends or early mornings
• Parking, tolls or public transport for the normal home-to-work commute
• Grooming — hairdressing, cosmetics, hair and skin care products — even if you receive a grooming allowance or are expected to look well presented
• Meals, drinks and snacks during your normal working hours, even with a meal allowance (overtime meals under an award are the exception)
• Child care, school fees and your children's education costs while you're at work
• The cost of getting or renewing your driver's licence, even if it's a condition of employment
• Fines and penalties, such as parking or speeding fines on the way to or during work
• Vaccinations such as the flu shot, even if your employer requires them
• Prescription glasses or contact lenses needed for work (only protective eyewear qualifies)
• Entertainment and social functions — work lunches, social nights, networking breakfasts — even if attendance is compulsory
• HECS-HELP / HELP and other study loan repayments
• Any expense your employer paid for or reimbursed you for