EOFY Deduction Strategies for Employees (2025-26): Maximise Before 30 June

General information only. This is not tax or financial advice. Consult a registered tax agent for advice specific to your situation.

The last few weeks before 30 June are the final opportunity to incur deductible expenses that reduce your 2025-26 taxable income. This guide covers practical strategies for employees, focusing on actions that are both legitimate and worthwhile.

Buy work equipment before 30 June

If you need work-related equipment, purchasing it before 30 June means the deduction falls in the current year.

• Items costing $300 or less can be claimed as an immediate deduction in the year of purchase (no depreciation required)
• Items over $300 must be depreciated over their effective life, but the depreciation clock starts when you first use the item for work — buying and using before 30 June means you start claiming sooner
• Common items: laptop, monitor, desk, office chair, headset, work-specific software licences
• The item must be genuinely used for work, and if also used privately, only the work-related portion is deductible

Do not buy things you do not need. A $299 item you do not use for work is not a deduction — it is just spending.

Finalise your WFH diary

The ATO expects records to support work-from-home claims regardless of which method you use.

• Fixed rate method (67 cents per hour): You need a record showing actual hours worked from home for the full year. This can be a timesheet, roster, time-tracking app, or a diary.
• If you have not been keeping a log, start now. Even a few weeks of records is better than none, and you may be able to use other evidence (calendar entries, email timestamps) to reconstruct earlier periods.
• Review your records for completeness before the year ends — gaps in your log weaken your claim if audited.

Prepay union and professional fees

Union fees and professional association memberships are deductible if they relate to your current employment. Paying the next year’s membership before 30 June brings the deduction forward.

• Annual union membership renewals are a common candidate
• Professional body fees (CPA, Engineers Australia, Law Society, etc.) paid before 30 June count in 2025-26
• Subscriptions to work-related journals or publications also qualify

Prepay income protection insurance

Premiums for income protection insurance held outside of super are generally tax deductible. If your policy renewal falls near the end of the financial year, paying early locks in the deduction.

• Only income protection (income replacement) premiums are deductible — not life insurance, TPD, or trauma cover held outside super
• If the prepayment covers a period of 12 months or less ending before 30 June of the following year, the full amount is deductible upfront

Self-education expenses

If you are undertaking study that is directly connected to your current employment (not study to get into a new field), expenses incurred before 30 June are deductible in 2025-26.

• Course fees, textbooks, stationery, and student union fees
• Travel to attend classes (if not reimbursed by your employer)
• Computer and internet costs related to study
• The course must have a sufficient connection to your current work — a nurse studying an advanced nursing qualification qualifies; a nurse studying accounting to change careers does not

Charitable donations timing

Donations of $2 or more to organisations registered as deductible gift recipients (DGRs) are tax deductible. If you plan to make donations, doing so before 30 June means the deduction applies to 2025-26.

• Check the ABN Lookup DGR register to confirm the organisation qualifies
• Keep receipts for all donations
• Workplace giving through payroll is already allocated to the year it is deducted from your pay
• Donations to GoFundMe or similar platforms are generally not deductible unless the funds go to a registered DGR

The $300 substantiation threshold (commonly misunderstood)

There is a persistent myth that you can claim up to $300 in work-related expenses without receipts. This is not quite right.

• You do not need written evidence (receipts) for work-related expenses totalling $300 or less in a category, but you still need to be able to show how you calculated the claim
• The ATO can still ask you to explain and justify any claim
• This is not a free $300 — you must have actually spent the money on work-related items

Action items before 30 June

• Purchase any work equipment you genuinely need (aim for items under $300 for immediate full deduction)
• Complete or reconstruct your WFH hours diary for the full year
• Prepay union fees or professional association memberships
• Prepay income protection insurance if renewal timing allows
• Pay self-education expenses for current courses before 30 June
• Make charitable donations to DGR-registered organisations
• Organise receipts and records for all claimed expenses

Key dates

• 30 June 2026 — Last day to incur deductible expenses for the 2025-26 income year.
• 1 July 2026 — Expenses from this date onward fall into the 2026-27 year.

Next step

• Compare WFH deduction methods with the Work From Home Deductions Calculator
• Estimate your refund or tax payable with the Tax Return Calculator

This is general information only. Rules and thresholds can change. Check with the ATO or a registered tax agent for your specific situation.