The ATO has released an employees' guide for work expenses to help employees decide whether their expenses are deductible, and what records they need to keep to substantiate them. 

The Guide says that not all expenses associated with employment are deductible and explains:

  • how to determine if an expense is deductible against an employment income; 
  • how to apportion expenses if they are only partly deductible; 
  • how to work out whether an employee can claim a deduction in the year incurred the expense or whether he or she needs to claim a deduction for a decline in value over a number of years; and 
  • what records an employee needs to keep. 

The Guide also debunks some myths about work expense deductions.