Teacher Tax Deductions Australia 2025: What Teachers Can Claim in Their Tax Return

At Investax Group, a big portion of our clients are teachers. Every year, we make it a priority to dedicate at least one of our articles to Australian educators — because we know how hard teachers work and how often they spend their own money to support their students.

As tax time approaches, many teachers reach out to us asking, “What can I actually claim on my tax return?” From lesson planning and after-hours marking to buying classroom resources or paying for professional development, teachers often go above and beyond. The good news is that many of those out-of-pocket costs can be claimed as tax deductions — as long as they directly relate to your teaching income.

This 2025 teacher tax guide breaks down what you can and can’t claim, helping you maximise your refund while staying fully compliant with the latest ATO guidelines.

Why Teachers Should Maximise Their 2025 Tax Deductions

Australia has over half a million registered teachers, most of whom spend hours outside of school preparing lessons, grading work, and engaging in professional learning. Many of these unpaid hours come with real costs — from stationery and subscriptions to self-education and home-office expenses.

By understanding what’s claimable in the 2025 tax year, you can avoid missing out on legitimate deductions and reduce your taxable income.

What Can Teachers Claim in Their 2025 Tax Return?

If an expense is directly related to your teaching job — and you paid for it yourself without reimbursement — you may be able to claim a deduction. Teachers commonly claim:

• Teaching materials and classroom supplies
• Professional development and self-education costs
• Car and travel expenses between schools
• Work-related phone and internet use
• Union and professional association fees
• Working-from-home expenses
• Compulsory uniforms or protective items

To claim any of these, you must have records showing how the cost relates to your teaching work and how you calculated any private versus work-related use.

How to Keep Records and Receipts for ATO Compliance

Record-keeping remains one of the most important parts of lodging your tax return correctly. The ATO requires evidence such as receipts, invoices, or bank statements showing:

• Supplier name and amount
• Date and nature of purchase
• Proof of payment
• How the expense relates to earning your income

If you claim for items used partly for personal reasons (like a phone or internet plan), you’ll need to show how you worked out the work-related portion — for example, by keeping a four-week usage diary.

For 2025, the ATO still allows a no-receipt to claim for work-related expenses totalling $300 or less. However, you must be able to explain how the expense was incurred. Laundry expenses up to $150 can also be claimed without receipts, provided you genuinely incurred the cost for washing or ironing eligible work clothes.

Can Teachers Claim Car and Travel Expenses?

Many teachers travel between schools, training sessions, or student activities during the day. You can claim car expenses when you:

• Drive directly between two separate jobs (e.g. from school to a tutoring job)
• Travel from your school to another school or training venue for work-related duties
• Transport bulky teaching items or equipment that can’t be safely stored at school

For the 2025 financial year, the cents-per-kilometre rate is 85 cents. You can claim up to 5,000 km per car without needing written receipts, though you’ll still need to show how you calculated your work kilometres.

Example: Sarah teaches at a Sydney high school and also tutors privately three evenings a week. She drives 120 km per week between her school and tutoring venue. Over 40 weeks, that’s 4,800 work-related kilometres. At 85c/km, Sarah can claim $4,080 as a car expense deduction.

You can also use the logbook method if your car use is more extensive. Keep a logbook for 12 continuous weeks, showing the percentage of work use versus private use, and maintain records for fuel, servicing, insurance, and depreciation.

You can’t claim trips between home and your regular school, parking at or near your usual workplace, or the cost of getting or renewing your driver’s licence.

Can Teachers Claim Clothing and Laundry Expenses?

The vast majority of Australian schools do not require teachers to wear a staff uniform. While students have strict uniform policies, teachers are generally expected to follow a professional dress code rather than wear a specific branded outfit.

Because of this, most teachers cannot claim a tax deduction for clothing expenses. Everyday professional attire — such as shirts, dresses, trousers, or shoes — is considered conventional clothing, even if you only wear it at work. The ATO classifies these as private expenses and does not allow deductions for them.

However, there are limited circumstances where teachers can claim clothing-related costs:

• If your employer requires you to wear a compulsory uniform with the school’s logo or a distinctive design registered with AusIndustry.
• If you purchase protective clothing or footwear necessary for specific duties, such as supervising outdoor sports or science labs.

Laundry expenses are only deductible when they relate to eligible work clothing (such as a registered uniform or protective gear). If this applies to you, the ATO allows simplified claims — $1 per load if washing only work clothes or 50c per load if mixed with personal laundry.

For everyone else, the cost of professional clothing remains non-deductible, even when it’s worn exclusively at school.

Are Self-Education and Professional Development Costs Deductible?

If your study directly relates to your current teaching role — for example, a Master of Education or short course that builds your classroom or leadership skills — you can claim:

• Course and tuition fees (excluding HELP/HECS repayments)
• Textbooks, stationery, and academic journals
• Student services or amenities fees
• Computer, software, and internet costs used for study
• Depreciation for assets costing over $300 (e.g. a laptop)
• Home-office running costs if you study from home

Can Teachers Claim Working From Home Expenses in 2025?

Many teachers prepare lesson plans, mark papers, or attend online meetings from home. If you use your home as a workspace, you can claim a deduction for the additional running costs.

For the 2025 income year, the ATO’s fixed-rate method is 70 cents per hour. This covers electricity, gas, internet, phone usage, stationery, and computer consumables. To use this method, you must:

• Keep a record of the total hours worked from home (such as a diary, roster, or timesheet).
• Retain at least one bill or receipt for each type of expense included in the rate.

Alternatively, if you have a dedicated home office, you can use the actual cost method, which may result in a higher deduction but requires detailed records for expenses like electricity, furniture depreciation, and equipment.

Example:
Amelia works from home two evenings a week for three hours each night during the school term (40 weeks). That’s 240 hours in total. At 70 cents per hour, she can claim $168 as a working-from-home expense for the year.

You can’t claim general household items like coffee, tea, or furniture for personal comfort, nor anything reimbursed by your employer.

Other Work-Related Deductions Teachers Shouldn’t Miss

In addition to car, clothing, and home-office expenses, teachers often overlook several legitimate claims:

• Phone and Internet Use – Keep usage records to show the work-related portion.
• Excursions and Camps – You can claim costs related to supervising students on camps or school trips if you pay them yourself.
• First Aid Courses – If you’re the designated first-aid officer, course fees are deductible.
• Seminars and Conferences – Claim registration and related travel if directly connected to your teaching.
• Teaching Aids and Materials – Items like posters, games, musical instruments, or educational subscriptions can be deducted.
• Union and Professional Fees – Annual fees paid to the Teachers Federation or other professional bodies are deductible.
• Protective Equipment – Gloves, masks, hand sanitiser, or similar items used due to health and safety requirements.

What Teachers Can’t Claim in Their 2025 Tax Return

Some expenses, while related to school life, are considered private and not deductible:

• Everyday travel from home to school
• Gifts or rewards for students
• Morning tea or coffee for colleagues
• Vaccinations or medical checks
• Costs reimbursed by your employer
• Clothing that isn’t part of a registered or compulsory uniform

Claiming ineligible expenses can attract ATO attention, so it’s best to keep claims honest and well-documented.

What’s Next

Australian teachers work tirelessly to educate and inspire the next generation — often at personal cost. Understanding what you can and can’t claim can make a big difference when tax time arrives.

If you’re unsure about your eligible deductions or need help preparing your 2025 teacher tax return, our team at Investax Group specialises in helping educators maximise their refunds while staying ATO-compliant.

Join the growing number of teachers who trust Investax to handle their tax returns with care and precision. Let us help you claim every dollar you deserve this year.

General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on our website, Investax Group, its officers, representatives, employees and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.