From work-from-home records to vehicle expenses, here’s what engineers should double-check before lodging their tax return this EOFY.
Tax time can be far from straightforward for engineers, with multiple work locations and varied income streams increasing the risk of errors.
As EOFY approaches, engineers should pause to review their claims carefully and avoid common traps, according to Mark Chapman, Director of Tax Communications at H&R Block Australia.
“For engineers, the key issue is substantiating deductions, particularly where work arrangements involve a combination of office-based work, working from home and travel to various project sites,” he told create.
At the same time, the ATO’s growing data-matching capabilities mean income from multiple employers, consulting work, investments and side businesses is becoming more visible, he added.
It’s therefore more important than ever to ensure every deduction engineers claim is legitimate and supported by clear records.
Before lodging your return, he recommends asking yourself the following questions.
1. Can I prove the hours I’ve worked from home?
While work-from-home deductions are available for engineers working under hybrid arrangements, the ATO expects taxpayers to demonstrate actual hours worked from home, Chapman said.
Engineers claiming home office expenses can generally choose between the fixed-rate method and calculating their actual expenses. While the fixed-rate method simplifies the process, it still requires taxpayers to keep detailed records.
“We’re seeing continued scrutiny of work-from-home claims, particularly where taxpayers rely on estimates,” he said. “The most effective approach is to maintain contemporaneous records throughout the year rather than attempting to reconstruct work patterns at tax time.”
Acceptable evidence can include timesheets, electronic diaries, calendar records, rosters and time-tracking applications.
2. Am I claiming travel or simply commuting?
Engineers who use their own car to travel between worksites can generally claim vehicle expenses using either the cents-per-kilometre method or the logbook method.
The cents-per-kilometre method tends to be the simpler option. For 2025-26, the ATO allows 88 cents per km for up to 5000 work-related km.
The logbook method might produce a larger deduction for engineers who spend significant time travelling between sites, offices and client locations.
Under the logbook method, claims can include expenses such as fuel, maintenance, registration, insurance and depreciation, apportioned according to work-related use.
However, one of the most common mistakes Chapman sees is taxpayers claiming ordinary commuting expenses.
“Travel between project sites may be deductible in certain circumstances, but travel from home to a regular workplace generally remains private and non-deductible,” he said.
3. Have I claimed all eligible professional development expenses?
Education and training costs are a common consideration for engineers at tax time.
Tax-deductible expenses can include course fees, textbooks, stationery, parking, internet usage and some travel costs, provided they’re not reimbursed by your employer and the course directly links to your existing role.
“While these costs are often deductible where they maintain or improve existing professional skills, the tax treatment can vary depending on the nature of the course and its connection to current employment,” Chapman said.
If you’re undertaking further study or professional development, it’s worth reviewing whether those costs have a sufficient connection to your current employment.
4. Do I have records for my work-related expenses?
Work-related expenses such as professional memberships, tools, software, technical publications, protective equipment and compulsory uniforms are often tax-deductible for engineers.
Generally, there needs to be a clear connection between the expense and your current employment. For example, protective clothing such as high-visibility gear, safety glasses and steel-capped boots may be deductible where required for work, while ordinary clothing, even if worn to work, is generally not.
Similarly, tools and equipment can usually be claimed where they are used to earn your income, but any private use must be excluded from the claim.
Even where expenses are clearly work-related, Chapman stressed that taxpayers need more than a transaction to support a claim.
“The most common misconception is that bank statements alone are sufficient evidence,” he said. “While they may prove that money was spent, they often do not establish what was purchased or whether the expense was work-related.”
Tax invoices and receipts will be the strongest evidence should the ATO ever request substantiation.
5. Was I reimbursed for any of these expenses?
Before claiming any work-related expense, engineers should consider whether their employer has already covered some or all of the cost.
“We continue to see issues where taxpayers claim expenses without retaining receipts or assume employer-required costs are automatically deductible without considering whether they have been reimbursed,” Chapman said.
As a general rule, if an employer reimburses an expense, a deduction is not available because the employee has not personally incurred the cost.
This is particularly relevant for training, travel, equipment purchases and professional memberships.
6. Could I support every claim if the ATO asked questions?
While most taxpayers will never face a formal audit, the ATO’s increasing use of data analytics means it’s becoming easier to identify claims that seem inconsistent with a taxpayer’s occupation or income level.
“This doesn’t mean taxpayers should avoid legitimate deductions, but it does reinforce the importance of having evidence available to support every claim made.”
For engineers, a good checklist might include:
- Receipts and tax invoices
- Professional membership invoices
- Training and CPD records
- Work-from-home records
- Vehicle logbooks (where relevant)
- Travel records and itineraries
- Equipment and software purchase records
- Employer reimbursement records
- Calendar entries or diary records supporting work activities
The ATO generally requires records supporting deductions to be retained for at least five years.
“The most important message for engineers heading into EOFY 2026 is that the ATO expects claims to be both legitimate and substantiated,” Chapman said. “The days of relying on broad estimates or reconstructed records are rapidly disappearing.”