Tax deductions for recruitment consultants
For recruitment consultants, a lot of the tax rules come down to how you are paid. A bottle of wine for a client can be claimed if your income comes from commission or a retainer, but not if you are on a fixed salary with no commission. Taking that client to lunch cannot be claimed either way, even if you talk business the whole time.
This page sets out what you can and cannot claim as a recruitment consultant, recruiter, headhunter, candidate manager or other recruitment employee in Australia, checked against the ATO's own occupation guide. Where a rule has a catch in it, we have said so rather than left it out. It is written for employees. If you contract on your own ABN or run your own recruitment agency, start with a business consultation instead.
Aevum Accounting is a CPA practice and registered tax agent in Balcatta, Perth, working with recruitment consultants across Australia.
Approved by Ben De Rosa, CPA. Last checked against the ATO's guidance on 26 September 2026.
What recruitment consultants can claim
Before any specific deduction, an expense has to clear all three of these. The ATO calls them the three golden rules.
1. You spent the money yourself and were not reimbursed. If your employer paid for it or paid you back, it is not your deduction.
2. The expense directly relates to earning your income. Not helpful to your career in general. Directly related to the job you are doing now.
3. You have a record to prove it. Usually a receipt.
If an expense was part work and part private, you can only claim the work-related portion. And you cannot claim at all if you have no records, or if someone else paid.
The short version, before the detail. These are the claims worth checking every year.
Usually deductible
Driving from home or the office to a client, between clients, or to a seminar or other work meeting.
Parking and tolls on work trips, unless your employer pays you back.
Gifts such as a hamper or a bottle of wine, if you are paid by commission or retainer.
The work share of a LinkedIn Premium subscription, such as Recruiter Lite.
The work share of your phone and internet.
Working from home, at 70 cents per hour for 2024-25 and 2025-26, or actual costs.
A laptop, tablet or other equipment you use for work, for the work share.
A compulsory uniform with your employer's logo, if you buy it, and washing it.
Courses, seminars and conferences that relate to your current job.
Accommodation, meals and incidentals when work sends you away overnight.
Union and professional association fees.
Not deductible, however it feels
Lunches, dinners and drinks with clients or candidates, even if you talk business.
Networking breakfasts and other functions, and getting to them.
Gifts for clients if you are on a fixed salary with no commission.
Tickets to a live sporting event, even as a gift.
Suits, dresses and other office wear, even with a dress standard.
The drive between home and your regular office, and parking near it.
Parking and speeding fines, even at a client meeting.
Food and drink in your normal working hours.
Haircuts, cosmetics and skin care, even if you are expected to be well groomed.
Prescription glasses and contact lenses.
Your drivers licence, even if the job requires one.
Moving costs when you are transferred to another office.
Study for a different job, such as a business diploma to start your own agency.
Each of these is explained properly below.
From the 2026-27 income year, if you are an Australian resident earning a salary or wage, you get a standard deduction of up to $1,000 for work-related expenses. The ATO applies it automatically and you do not need receipts for it. It became law in June 2026 and starts with the 2026-27 return, which you lodge from July 2027. It does not apply to the 2025-26 return you are lodging now.
It is not a bonus on top of your normal claims. Any work-related expenses you claim reduce it dollar for dollar. Claim $600 of expenses and your standard deduction drops to $400, so you land on $1,000 either way, with more paperwork. If your work expenses are more than $1,000, you claim them the way you do now, and you need records for every dollar you claim, not just the part above $1,000. For most expenses, that means written evidence such as receipts.
Union fees and professional association memberships sit outside it. You can claim those on top of the full $1,000, as long as you keep the records. The same goes for deductions that are not work expenses, such as donations to charity, income protection premiums and your tax agent's fee.
For recruitment consultants, it depends on what your employer pays for. If your laptop, phone and LinkedIn subscription are supplied, your work expenses may sit well under $1,000. LinkedIn Premium alone can take you past it, like the $1,169.91 in the ATO's example below. Keep your receipts until you know which side of the line you are on.
Your salary, wages, commissions and bonuses go in your tax return, and so does every allowance on your income statement. An allowance does not give you a deduction by itself. One for the conditions of the job, such as working in a remote locality, has nothing to claim against it. One for certain expenses, such as a vehicle allowance, or for special skills, such as a first aid certificate, can come with a deduction, but only for deductible expenses you actually have.
In the ATO's example, Bronwyn, a recruitment consultant, is paid 50 cents a kilometre to use her own car for work, and her income statement shows a $1,280 car allowance for 2,560 kilometres. She declares the $1,280, then claims $2,253 from her own trip records at the cents per kilometre rate of 88 cents, not the allowance amount.
An allowance that shows only on your payslips, such as an overtime meal or travel allowance, does not need declaring if you spend all of it on deductible expenses and do not claim them. The allowance must also be within the ATO's reasonable amount. If your employer pays you back the exact amount you spent, that is a reimbursement. You do not declare it and you cannot claim the expense.
The trip between home and your regular office is private, even if you live a long way away or work late.
You can claim trips in the course of your work, such as from home or the office to a client, between clients, or to a seminar or other work meeting away from the office, including one with a candidate. In the ATO's example, Kirsten, a recruitment consultant, can claim driving from home to a client's office, on to another client, and then to her normal workplace. The ATO's general guidance also lets you claim the drive straight home from a client at the end of the day, as long as you do not work there regularly.
Cents per kilometre. 88 cents per kilometre for 2024-25 and 2025-26, and 91 cents for 2026-27, capped at 5,000 work kilometres per car per year. You still need a record of how you worked out the kilometres. The alternative is a 12-week logbook and your actual costs.
If your car is salary packaged under a novated lease, you cannot claim its running costs, because it is usually your employer that leases the car and makes it available to you. You can still claim work-related parking and tolls you pay yourself.
Parking at or near your regular office, and tolls between home and work, are private. In the ATO's example, Cynthia, a recruitment consultant, can claim the parking and tolls she pays driving from her office to visit clients, unless her employer pays her back. Taxi, ride-share and public transport fares for work trips are deductible too, but not between home and your regular office.
Fines are never deductible, including a parking fine you get at a client meeting. Your drivers licence is private, to get or to renew, even if the job requires one.
You cannot claim entertainment or social functions, even compulsory ones, and even if you discuss work at them. That covers work breakfasts, lunches and dinners, cocktail parties, sporting events and similar functions, and travel to and from them. Food and drink in your normal working hours is private too.
In the ATO's examples, Paul, a recruitment consultant, cannot claim the client lunches he forgets to put on his company credit card and pays for himself. Nor can Vanessa, a client attraction manager, who meets potential new clients at lunches, cocktail parties and dinners and talks about work there. Trevor's employer pays the $35 for a quarterly networking breakfast for recruitment consultants, and Trevor cannot claim his parking or other costs of going.
Gifts are different. The ATO says you can claim gifts you buy for work, such as a Christmas hamper, wine, gift vouchers, flowers or a pen set, if you are a recruitment consultant entitled to receive your income from commission or a retainer. You cannot claim them if you earn a fixed income and are not entitled to commission, or if the gift is entertainment, such as tickets to a live sporting event.
In the ATO's example, Tasneem, an employer relationship manager on a fixed salary with no commission, cannot claim the bottles of wine she gives the executives of a major telecommunications company to thank them for a successful recruitment drive. If you are on a base salary plus commission, talk to us before you claim a gift. From 2026-27, gifts you buy for work count against the $1,000 standard deduction like your other work expenses. The ATO lists gifts and donations outside the $1,000, but as one of your other deductions, such as a donation to charity, not as a work expense.
Everyday clothing is private, even if your employer requires it and you only wear it at work. The ATO's own example is the business attire worn by recruitment consultants. Rhia, a key account manager in the ATO's example, cannot claim the blouses, skirts and dresses she buys to meet her employer's dress standards.
You can claim what you pay to buy, hire, repair or replace a compulsory uniform, one your employer strictly and consistently enforces and that distinctly identifies you as working for them, or a non-compulsory uniform your employer has registered on the Register of Approved Occupational Clothing.
Washing claimable clothing can be worked out at $1 a load for work clothing only, or 50 cents a load if you mix in personal items. Dry-cleaning and repairs are claimed at actual cost. In the ATO's example, Michelle, a recruitment consultant, washes her compulsory logo shirt with other clothes twice a week for 48 weeks, and claims 96 loads at 50 cents, $48.
Haircuts, cosmetics, and hair and skin care products are private, even if you get a grooming allowance or your employer expects you to be well groomed. So are prescription glasses and contact lenses. Protective glasses, such as anti-glare glasses, are claimable for their work use if you wear them to reduce a real and likely risk of illness or injury at work.
You can claim the work-related portion of a LinkedIn Premium subscription, if there is a sufficient connection between your duties as a recruitment consultant and the features it provides. In the ATO's example, Braeden, a recruitment consultant, buys a Recruiter Lite subscription in October at $129.99 a month. Its features, such as advanced search and automatic candidate tracking, help him do his job, and he uses it for nothing else, so he claims $129.99 for 9 months at 100% work use, $1,169.91.
Phone, data and internet costs are deductible for the work-related use of your own phone or devices. In the ATO's example, Madison's itemised bills show 210 of her 350 calls over 4 weeks, or 60%, were for work, so she claims 60% of her $69 a month plan for the 11 months she works, $455.40. Simon uses his home internet for work emails, appointments and extra work. A 4-week diary shows 30% work use, so he claims 30% of $120 a month for 11 months, $396. If anyone else used the connection, he would have to reduce his claim.
Keep your bills and a record of how you worked out your work use. A phone your employer provides and pays for is not claimable, and calls to family and friends are private.
Working from home counts only when you do your job from home, not minimal tasks such as occasionally checking emails or taking calls, and it adds to your running costs. The fixed rate method is 70 cents per work hour for 2024-25 and 2025-26, with a record of your actual hours, not an estimate. It covers energy, internet, phone use, stationery and computer consumables, so you cannot claim those separately. The alternative is your actual costs. Coffee, tea and milk are private, and as an employee you generally cannot claim rent, mortgage interest, rates or house insurance.
In the ATO's example, Winston, a recruitment consultant, works from home 2 days a week, records 792 hours for 2024-25 and claims $554.40, plus $425 for the decline in value of a $1,700 desktop computer he uses 50% for work.
Laptops, tablets and other equipment you use for work are deductible for the work share, but not items your employer or someone else supplies. An item costing $300 or less can be claimed in the year you buy it, if you use it mainly for work and it is not part of a set, or one of several identical or substantially identical items, costing more than $300 together. Above that, you claim its decline in value over its effective life. In the ATO's example, Melissa buys a $779 iPad on 1 July to take on client visits and uses it only for work. The ATO's effective life for a tablet is 2 years, so she claims $389.50 in the first year, not the full cost at once.
Repairs to work equipment are deductible for the work share, and so are diaries and pens you use for work, such as for notes in client meetings, unless your employer provides them or pays you back.
Self-education is deductible if it directly relates to your current job and either maintains or improves the skills and knowledge you need for your current duties, or is likely to increase your income from your current job. It is not deductible if it only relates to your job in a general way, or helps you get a new job or change jobs. Study loan repayments are never deductible, and neither are fees under HECS-HELP.
In the ATO's examples, Stephanie, a new recruitment consultant, can claim the Recruitment Consulting Certificate her employer suggests, because it improves the skills she needs now. Isabelle, at a niche recruitment agency, can claim a Certificate IV in Employment Services, because her manager confirms a promotion and pay rise when she completes it. Damon, a recruitment consultant who wants to start his own firm, cannot claim a Diploma in Business.
Seminars, conferences and training courses that relate to your work are deductible, including registration, fares and, if you stay overnight, accommodation and meals, unless your employer pays.
When work requires you to sleep away from home overnight, you can claim accommodation, meals and incidentals, but not what your employer provides or pays you back for. In the ATO's example, Jennifer declares the $150 a night travel allowance her employer pays for meals and incidentals on a 5-night conference trip to Madrid. As long as her claim does not exceed the reasonable amount, she needs no receipts, but she notes her spending in her work diary. If you pay for accommodation overseas yourself, you need receipts for all of it, whether or not you get an allowance. From 2026-27, travel allowance expenses you claim count against the $1,000 standard deduction, and the reasonable amount exception still applies.
Moving for work is private. In the ATO's example, Cathy cannot claim her relocation costs or rent when her employer transfers her from Canberra to Sydney.
Union and professional association fees are deductible, and if they are on your income statement, that is your evidence.
For the 2025-26 return you are lodging now: receipts for everything you claim, your income statement and payslips, which show your allowances, kilometre records or a logbook for car claims, a record of how you worked out your phone, internet and LinkedIn work use, and a record of your hours if you work from home. Two shortcuts still apply this year. If your total work-related expenses, other than car, travel allowance and overtime meal allowance claims, are $300 or less, you can claim them without receipts. If your laundry claim, not counting dry cleaning, is $150 or less, you do not need written evidence of it. In both cases you still have to be able to show that you spent the money and how you worked out the figure.
From 2026-27, those shortcuts end for everyone. If you claim more than the standard deduction, you need written evidence, such as receipts, for your work-related expenses. Some exceptions continue, including travel allowance and overtime meal allowance claims within the ATO's reasonable amounts, and car claims at cents per kilometre. For those, you still need records that show how you worked out the claim. For laundry worked out at the ATO's per-load rates, its current guidance is to keep a record of how many loads you washed, whether each was a work-only or mixed load, and evidence that you paid for the laundry.
The ATO's myDeductions tool in their app is a reasonable way to keep records through the year. We cannot access it directly, but you can export from it and send it to us. A shared Drive, OneDrive or Dropbox folder works just as well.
Individual tax return by email: $330. In person at Balcatta or online: $440.
Add a rental property, a sole trader schedule, or share and crypto trading: $100 each.
Business consultation, 60 minutes: $400.
All prices include GST, and we agree the fee before we start. See the full price list.
Can I claim taking a client or candidate to lunch?
No. The ATO does not let employees claim entertainment, including work breakfasts, lunches, dinners and cocktail parties, even if you discuss work or the event is compulsory. In the ATO's example, a recruitment consultant who pays for client lunches with his own card, instead of the company card, cannot claim them.
Can I claim gifts for my clients?
Only if you are entitled to receive your income from commission or a retainer. Then the ATO says you can claim gifts you buy for work, such as a Christmas hamper, wine, flowers or a pen set. You cannot claim gifts on a fixed salary with no commission, or gifts that are entertainment, such as tickets to a live sporting event. If you are on a base salary plus commission, talk to us before you claim.
Can I claim my LinkedIn Premium subscription?
Yes, the work-related portion, if its features connect to your duties as a recruitment consultant and your employer does not pay for it. In the ATO's example, a consultant who uses Recruiter Lite only for work claims $129.99 a month for 9 months, $1,169.91. If you also use it privately, claim the work share only.
Can I claim driving to client meetings?
Yes, from your office to a client or another work meeting, between clients, and from home straight to a client's office. The drive between home and your regular office is private, and so is parking near it.
How does the $1,000 standard deduction work for recruitment consultants?
From the 2026-27 return, you get up to $1,000 automatically, with no receipts needed. Any work expenses you claim reduce it, including a LinkedIn Premium subscription, so it helps most when your work expenses are under $1,000. If they are over, claim them as normal and keep records for every dollar. Your union and professional association fees go on top either way.
Do you work with recruitment consultants outside Perth?
Yes. We are based in Balcatta and we work with clients across Australia, by email or online appointment. See our pricing page for how the two options differ, or book an appointment.
There is no episode of the Aevum Accounting Podcast just for recruitment consultants, but two are relevant to you. The Thousand Dollar Deduction (episode 54) explains the new standard deduction, and its written companion is The $1,000 Instant Tax Deduction: What It's Actually Worth. Your Tax Return, Your Way: Email or Appointment (episode 51) helps you choose how to lodge with us, and its companion is Email or Appointment.
This page is written for employees. If you run your own recruitment agency, Clients, Gifts and the Footy is written for business owners, and its companion is Are Client Gifts Tax Deductible?. Neither changes what an employee can claim. For advice on your own business, book a business consultation.
We are a CPA practice and registered tax agent, TPB registration 26302591. You can check our credentials, meet the team, or book an appointment.
Also worth reading: tax accountants Perth for how we work with individuals, and our guides for sales and marketing staff, real estate agents and office workers.