Find the right tax category for your expenses
Quickly check which ATO category applies to your business expense. Ensure accurate tax reporting and maximize deductions.
Correctly categorizing your expenses is crucial for maximizing tax deductions and staying ATO-compliant. Each category has specific rules about what can be claimed, how much, and when. Poor categorization leads to:
This tool helps you assign the correct ATO category to each expense throughout the year, making tax time faster and ensuring you claim everything you're entitled to.
What qualifies: Expenses you incur as an employee to do your job. Must be directly related to earning employment income and not reimbursed by your employer.
Common sub-categories:
What qualifies: Costs associated with earning rental income from investment properties. Only claim for period property was rented or genuinely available for rent.
Common sub-categories:
What qualifies: Costs incurred in running a business (sole trader, partnership, company, or trust). Must be for business purposes, not private use.
Common categories:
What qualifies: Costs related to managing your investment portfolio (shares, managed funds, etc.). Cannot include capital costs.
Common sub-categories:
Note: You cannot claim brokerage fees or cost of buying/selling shares - these are capital costs affecting your CGT calculation.
This tool analyzes your expense description and suggests the most appropriate ATO category. Here's how to get accurate results:
Pro tip: Include merchant name, expense nature, and purpose in your description for best categorization accuracy.
Some expenses serve multiple purposes and must be apportioned between categories. The ATO requires you to calculate a reasonable work/business use percentage based on actual usage.
| Expense | Apportionment Method | Categories to Split |
|---|---|---|
| Mobile Phone | 4-week diary tracking work vs personal calls/data usage | Work-Related (D5) vs Not Claimable |
| Car Expenses | 12-week logbook showing business vs private km | Work-Related (D1) or Business vs Not Claimable |
| Internet Plan | Estimate percentage based on work hours vs total home usage | Home Office (D5) or Business vs Not Claimable |
| Study Course | Percentage improving current skills vs new career skills | Self-Education (D4) vs Not Claimable |
Keep records of your calculation method for 5 years. The ATO may ask you to substantiate your apportionment during an audit.
Description: "Bunnings - drill bits, safety glasses, tarps"
Suggested Category: Work-Related Expenses (D3) - Tools and Equipment
Why: Tools and protective equipment used exclusively for work. Under $300 = immediate deduction.
Description: "First National - quarterly management fee 123 Smith St"
Suggested Category: Rental Property Expenses (P13) - Property Management Fees
Why: Directly related to earning rental income, immediately deductible in same year.
Description: "Officeworks - printer ink, paper, folders for client reports"
Suggested Category: Business Expenses - Stationery and Office Supplies
Why: Consumables used in running your business. Immediately deductible.
Description: "Dry cleaning work uniform with company logo"
Suggested Category: Work-Related Expenses (D3) - Laundry/Dry Cleaning (Uniform)
Why: Laundering compulsory work uniforms is deductible. Conventional clothing is not.
Mistake: Claiming new kitchen in rental property as "Repairs and Maintenance (P11)"
Correct: Replacing entire kitchen is a capital improvement. Must claim via depreciation (P14) over multiple years. Only repairs to existing kitchen are P11.
Mistake: Claiming full mobile phone bill as "Work-Related (D5)" when used for personal too
Correct: Apportion based on actual work usage (e.g., 60%). Only claim work portion, or use 67¢/hr fixed rate which includes phone.
Mistake: Claiming home-to-work commute as "Car Expenses (D1)"
Correct: Normal commuting is never deductible. Only travel between work sites, client visits, or work errands qualify for D1.
Mistake: Claiming 2023-24 expenses in 2024-25 return because you paid late
Correct: Most expenses are claimed in the year incurred (invoice date), not when paid. Exception: prepaid expenses may need apportionment.
After categorizing your expense, you may want deeper analysis. This tool links to specialized calculators for common expense types:
Tip: All calculators support shareable URLs and CSV export, making it easy to share results with your accountant.
Track all your receipts and deductions in one place
Join 500+ Australians already tracking their tax deductions
Interactive mileage calculator with instant results, visual monthly breakdown, and CSV export. Calculate deductible travel for work or rental property trips using ATO cents-per-km method. Updated for
Interactive tax deduction checker — instantly assess ATO eligibility, see examples, and get suggested categories. Connect to calculators for deeper analysis.
Interactive rental property calculator with scenario comparison, shareable results, and expense breakdown. Compare renovation vs hold scenarios, negative gearing strategies, and share calculations wit