Tax deductions for retail workers
In retail, what your employer asks of you and what the ATO lets you claim are often two different things. A shirt with the store's logo embroidered on it can be claimed, and so can washing it. The black pants and black shoes you must wear with it cannot, and nor can parking at the shopping centre where you work.
This page sets out what you can and cannot claim as a shop or sales assistant, checkout operator, store manager or other employee in a supermarket, department store, fashion store or other shop 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 work on your own ABN, own a shop or run your own retail business, start with a business consultation instead.
Aevum Accounting is a CPA practice and registered tax agent in Balcatta, Perth, working with retail workers across Australia.
Approved by Ben De Rosa, CPA. Last checked against the ATO's guidance on 26 September 2026.
What retail workers 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
A compulsory uniform, such as a shirt with your store's logo, if you buy it yourself.
Protective clothing, such as steel-capped boots or an apron that protects your own clothes.
Washing, dry-cleaning and repairing claimable clothing, even a uniform your employer supplies.
Gloves, face masks, sanitiser, safety glasses and other protective items you pay for.
Overtime meals, but only with an overtime meal allowance under an award or agreement.
Driving between two jobs on the same day, or between workplaces for the same employer.
Parking, tolls and taxi fares on work trips, unless your employer pays you back.
Flights, accommodation and meals you pay for when work sends you away overnight.
Conferences and training that relate to your work in retail.
A course that improves the skills you need now, such as a Certificate III in Retail.
A first aid course, if you are the designated first aid person.
The work share of your phone and internet.
Union and professional association fees.
Not deductible, however it feels
Black pants, white shirts and black shoes, even when your employer requires them.
Clothes from the store that you are asked to wear at work.
Haircuts, makeup, cosmetics and skin care, even with a grooming allowance.
The drive between home and your store, even for early morning or weekend shifts.
Parking at or near your regular workplace, such as the shopping centre car park.
Food and drink on a normal shift, even with a meal allowance.
Staff breakfasts, work dinners and other social functions, even compulsory ones.
A cold work or recall allowance. It is income, with nothing to claim against it.
Phone use that is only talking to your manager about shifts or checking payslips.
Your drivers licence, even if the job requires one.
Flu shots and other vaccinations, even if your employer requires them.
Study for a different job, such as a business course to start your own business.
Fines, including parking and speeding fines.
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 retail workers, it depends on what your employer supplies. If your uniform is supplied and you mostly claim washing it, your work expenses may sit well under $1,000. A retail course or work travel you pay for yourself can take you past it. Keep your receipts until you know which side of the line you are on.
Your salary and wages go in your tax return, including cash or bonus payments, and so does every allowance on your income statement. An allowance does not give you a deduction by itself. One that pays you for the conditions of the job, such as a cold work or recall allowance, is income with nothing to claim against it. One for certain expenses, such as overtime meals, 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, Conchita, a supermarket employee, gets an allowance of 47 cents an hour when she works in the dairy section. It is on her income statement, so she declares it, but she cannot claim a deduction, because it compensates her for working in unpleasant conditions, not for work expenses.
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.
Everyday clothing is private, even if your employer requires it and you only wear it at work. The ATO's own example is the plain white shirt and black pants worn by retail employees.
You can claim what you pay to buy, hire, repair or replace four kinds of work clothing. Protective clothing protects you from specific risks of injury or illness at work, such as steel-capped boots, aprons that protect your own clothes, or clothing for working in extreme temperatures. Occupation-specific clothing identifies a particular occupation, like a chef's chequered pants. A compulsory uniform is one your employer strictly and consistently enforces and that distinctly identifies you as working for them. A non-compulsory uniform counts only if your employer has registered it on the Register of Approved Occupational Clothing.
In the ATO's examples, Rick, who works at a supermarket, can claim the logo shirts he must buy, because they are a compulsory uniform, but not the black pants and closed black shoes his employer also requires. A set colour does not make them part of his uniform. Matt, a sales assistant in a clothing store, must wear clothes available in the store, but cannot claim them, because they are conventional clothes and not part of a compulsory uniform.
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, and that includes a uniform your employer supplies. Dry-cleaning and repairs are claimed at actual cost. In the ATO's example, Jelani washes the uniform her employer gives her as its own load twice a week for the 48 weeks she works, and claims $96.
Haircuts, cosmetics, and hair and skin care products are private, even if your employer expects you to be well groomed or pays you a grooming allowance. So are prescription glasses and contact lenses, and flu shots and other vaccinations, even if your employer requires them. Protective glasses and items, such as safety glasses, gloves, face masks or sanitiser, are claimable for their work use if they protect you from a real and likely risk of illness or injury at work, unless your employer supplies them, pays for them or pays you back.
The trip between home and your regular workplace is private, even if you live a long way away or work weekend or early morning shifts. In the ATO's example, Kyon, a store manager, cannot claim driving to and from work each day, because the cost puts him in a position to earn his income. You can also have more than one regular workplace. The ATO says that if you work in one of your employer's retail stores 3 days a week and a different store the other 2 days, both stores are regular workplaces.
You can claim driving directly between two separate jobs on the same day, as long as neither is your home, to and from an alternative workplace for the same employer on the same day, and from home straight to an alternative workplace, meaning one that is not your usual place of work. In the ATO's example, Olivia works part-time as a retail assistant at her local supermarket and as a waitress. On Mondays she drives straight from her supermarket shift to the restaurant. She can claim that trip, but not the trips between home and either job.
The ATO allows narrow exceptions for the trip from home, such as carrying bulky equipment essential to your duties when there is no secure storage for it at work. If you think one applies to you, talk to us before you claim it.
Taxi, ride-share and public transport fares for work trips, such as from your regular workplace to another work location, are deductible, unless your employer pays you back. Parking at or near your regular workplace, and tolls between home and work, are private. In the ATO's example, Katie, a sales assistant at a makeup store, cannot claim the $15 a day she pays to park in the shopping centre close to work. Parking and tolls on work trips are deductible. Fines never are, even ones you get while working.
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. Your drivers licence is not deductible, to get or to renew, even if the job requires one.
Food, drink and snacks during your normal working hours are private, even if you receive a meal allowance.
Overtime meals are deductible only if you buy and eat the meal while working overtime, you receive a separate overtime meal allowance under an industrial law, award or agreement, not one folded into your salary and wages, and you declare it as income, even if it shows only on your payslips. In the ATO's example, Carl, who works at a sports shoe store, gets a $20 overtime meal allowance under the award on 20 overtime shifts, shown as $400 on his income statement. He generally spends $15 on his meal, so he declares $400 and claims $300.
The reasonable amount is $38.65 for 2025-26 and $40 for 2026-27. If your claim is no more than that, you do not need receipts, but you must still be able to show what you spent and how you worked it out.
Entertainment and social functions are private, even compulsory ones, and so is getting to and from them. In the ATO's example, Rachael, a new retail sales assistant with a makeup company, cannot claim her transport, food and drinks at a social breakfast her company organises for new employees to network with colleagues.
You can claim accommodation, meals and incidentals when your work requires you to travel and sleep away from home overnight, but not a room or meals your employer provides, or costs your employer pays you back for. In the ATO's examples, George, a retail assistant, flies to Sydney at his manager's request to meet the regional manager, paying his own flights, accommodation and meals with no travel allowance. He can claim them, but needs written evidence of all of it. Lorena, who manages a regional women's wear franchise, flies to Perth once a month for a head office meeting. Her employer pays her flights and accommodation and gives her a travel allowance for meals. She can claim what she spends on meals if she declares the allowance, and if each meal costs less than the reasonable amount, she does not need receipts.
A travel allowance on your income statement must be declared. One that is not on it, does not exceed the ATO's reasonable amount and is fully spent on the travel can be left out, but then you cannot claim those costs. If you receive a travel allowance and your claim is within the reasonable amount, you do not need receipts, except for overseas accommodation, but you must still be able to show you spent the money. Claim more and you need receipts for all of it, not just the part above.
From 2026-27, travel allowance expenses you claim count against the $1,000 standard deduction, and the reasonable amount exception still applies.
Seminars, conferences and training courses that relate to your work in retail are deductible, including fares, registration and, if you stay overnight, accommodation and meals, unless your employer pays. In the ATO's example, Reeta, a retail assistant at a clothing franchise, can claim a conference she attends to learn about the new stock her company is getting. If a trip is partly private, you can only claim the work part, and if you go mainly for a holiday, only direct costs such as registration.
Phone, data and internet costs are deductible for the work-related use of your own phone or devices. 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.
Using your phone just to sort out your shifts does not count. The ATO says a casual cannot claim calls or texts when an employer asks them to work, or when they check on work availability. Its retail summary also rules out phone and internet use where the only work use is talking to your manager about your shifts or checking your payslips. In the ATO's phone example, another George, who manages a hardware store, uses his mobile to call his staff and area manager about roster changes and leave. He works out that 30 of his 300 calls, or 10%, are for work, so on a $49 a month plan over the 10.6 months he works, he claims $51.94.
Self-education is deductible if it directly relates to your current job and maintains or improves the skills you need for your current duties, or is likely to increase your income from your current job. It is not if it only relates to your job in a general way, or helps you get a different job. In the ATO's examples, Billy, a sales assistant in a clothing outlet, can claim a Certificate III in Retail focused on engaging with customers, selling products and handling complaints. Jane, a shop assistant who would like to go into business for herself, cannot claim her Business Administration course. Study loan repayments are never deductible, and neither are fees under HECS-HELP.
A first aid course is deductible if you are a designated first aid person and need it to assist in emergency work situations, unless your employer pays for it or reimburses you. 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, and a record of how you worked out your phone and internet work use. 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.
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Can I claim my work clothes and shoes?
Only some of them. A compulsory uniform, such as a logo shirt you have to buy, can be claimed, and so can washing it. Plain black pants, white shirts and black shoes are conventional clothing, so they are private, even when your employer requires them. So are clothes from the store that you are asked to wear at work.
Can I claim washing a uniform my employer supplies?
Yes, if it is claimable clothing, such as a compulsory uniform. You can work it out at $1 a load for work clothing only, or 50 cents a load if you mix in personal items. In the ATO's example, Jelani washes the uniform her employer gives her as its own load twice a week for 48 weeks and claims $96. If you also get a laundry allowance, you declare it as income.
Can I claim parking at the shopping centre?
Not where you regularly work. Parking at or near your regular workplace is private, and in the ATO's example, a sales assistant cannot claim the $15 a day she pays to park in the shopping centre close to work. Parking and tolls on work trips are deductible, unless your employer pays you back.
Can I claim my phone if I only use it to sort out my shifts?
No. The ATO says you cannot claim phone and internet use where the only work use is talking to your manager about your shifts or checking your payslips. If you use your own phone for your duties, such as a manager calling staff about roster changes, you can claim the work share, with your bills and a record of how you worked it out.
How does the $1,000 standard deduction work for retail workers?
From the 2026-27 return, you get up to $1,000 automatically, with no receipts needed. Any work expenses you claim reduce it, including washing your uniform, 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 fees go on top either way.
Do you work with retail workers 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 retail workers yet, 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.
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 hospitality workers, security guards and office workers.