From tools of the trade to self-education, here’s how engineers can make the most of their eligible deductions this EOFY.
As the end of the financial year approaches, engineers must turn their problem-solving skills to the task of preparing an accurate, justified and well-documented tax return.
Whether you’re working on-site or managing projects from the office, knowing what you can legitimately claim is essential to maximising your return while staying compliant with ATO expectations.
From tools of the trade to ongoing professional development, there are several work-related expenses engineers may be able to claim.
As you prepare to submit your return, keep in mind that accurate records and clear links to your current role are essential, especially as the ATO continues to use more advanced analytics to crack down on unusual claims.
“If you have incurred a work-related expense, and you have the paperwork to prove it, don’t hesitate to claim it,” said Mark Chapman, Director of Tax Communications at H&R Block Australia. “But don’t embellish deductions. You can only claim what you’ve spent.
“If your claim rings alarm bells, myTax will give you a stern warning inviting you to rethink that deduction. Ignore that message, and you could be headed for an audit.”
To help engineers make the most of their entitlements and avoid common tax pitfalls, Chapman spoke with create to unpack some of the most relevant deductions for engineers in 2025.
1. Car expenses
If you use your own car to travel between worksites, you may be able to claim some of those costs at tax time. There are two ways to do this: the cents-per-kilometre method or the logbook method.
“It is important to note that you must own or lease the car to claim under either of the methods,” Chapman said. “If your car is owned by your employer or is part of your salary package, then you are unable to claim anything.”
The cents-per-kilometre method is the simpler option. For 2024-25, the ATO allows 88 cents per kilometre for up to 5000 work-related km. This method does not apply to commuting between home and a regular workplace, but does apply to travel between different work locations.
“Because the 5000 km limit applies per vehicle, if you change your car during the course of the year, you may be able to claim a further 5000 km for the new vehicle,” he said.
For those with higher travel volumes, the logbook method could yield a bigger deduction.
“[With this method], your claim is based on the business-use percentage of each car expense. This is determined by a logbook that must have been kept for a minimum 12-week period, and must be updated every five years.”
Through this logbook, engineers can claim all expenses related to operations of the car, including fuel, maintenance, registration, insurance and depreciation.
“There are a number of logbook apps available which can record your journeys using your phone GPS system,” he said. “Don’t forget to exclude holidays and other periods of absence from work from your claim.”
2. Working from home expenses
Engineers who work from home can claim deductions using one of two methods.
One option is to file an expense claim that can include energy costs, cleaning costs, internet, depreciation and equipment or furniture costing less than $300.
“You must keep all receipts and invoices, show how you’ve apportioned expenses between domestic use and work use and keep a four-week diary of your working from home, which you can then extrapolate over the whole tax year,” Chapman said.
Alternatively, engineers can claim the ATO’s 70 cents per hour fixed-rate deduction of 70 cents per hour worked from home.
“You don’t need detailed substantiation [for this method], but you do need to have a complete record of all your hours worked from home for the entire tax year – for example, a diary, timesheets or rosters.”
3. Tools and equipment
Work-related tools and devices such as laptops, hand tools or calculators may be tax-deductible for engineers.
“The cost should be written off immediately if it’s less than $300. Only the work-related portion can be deducted – if it is used 100 per cent for work, the whole cost can be deducted, if it is used for both work and private use, an appropriate apportionment needs to be arrived at.”
Engineers operating a business may also be eligible to fully expense assets under temporary full expensing provisions, which continue to apply for the 2024-25 financial year subject to any policy updates.
4. Protective clothing and uniforms
Deductions may be available for occupation-specific clothing and protective gear such as high-vis jackets, steel-capped boots, safety glasses and other items needed for on-site work.
To be deductible, the clothing must be explicitly required for the job and not suitable for everyday use.
Engineers who buy compulsory uniforms with a company logo may also be eligible to claim expenses related to their purchase and upkeep, including laundry.
“You may be able to claim for a single item of distinctive clothing if it’s compulsory for you to wear it at work,” Chapman said.
“[However], you can’t claim the cost of purchasing or cleaning clothes you bought to wear for work that are not specific to your occupation, such as a business suit.”
5. Education and training
Self-education expenses that directly relate to your current engineering role may also be deductible.
“Most of us want to better ourselves at work, and a large part of doing that is equipping yourself with the skills you need to advance your career,” Chapman said. “Self-education expenses are tax deductible when the course you undertake leads to a formal qualification and has a sufficient connection to your current employment.”
This can include qualifications like a Master of Engineering as well as short courses, online modules or certifications that enhance your professional skills or income potential in your current job.
Eligible expenses can include course fees, textbooks, stationery, parking, internet usage and some travel costs, provided they’re not reimbursed by your employer and the course directly links to your existing role.
Additional deductions to consider
Engineers can also look into claiming voluntary superannuation contributions. Personal concessional contributions up to the current annual cap of $30,000 may be deductible, provided a valid notice of intent is lodged with your super fund.
Taxpayers should also ensure they are keeping appropriate records throughout the year. The ATO’s myDeductions tool is one convenient way to track expenses, receipts and travel details in real time, helping to avoid a last-minute scramble at the end of June.
While the ATO’s tax tools are invaluable, Chapman cautioned engineers to avoid relying on pre-filled data.
“These days, with the push of a button, you can pre-fill lots of your income information straight from the ATO’s systems,” he said. “Take care though, and don’t assume that income data is correct or complete. Particularly if you are lodging early, always use your own information as the key source data.”
Is the next financial year time for a career change? Engineers Australia members can access the official jobs board.
