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🏠 Sales & Property

Real Estate Agent Tax Deductions
Australia 2026

Licensed Sales Agents & Property Managers — your complete ATO-aligned 2026 guide.

Last updated: May 2026

14 Fully deductible

5 Partial

1 Not deductible

Real estate agents have one of the most expense-heavy roles in Australia: you fund your own marketing, drive constantly between properties, wear good clothes (sometimes), and pay for endless training to keep your licence current. The good news is most of those expenses are deductible — but the ATO watches this industry closely because real estate agents have historically over-claimed clothing, entertainment, and home office costs.

The 3 ATO golden rules

To claim a work-related deduction, you must meet all three:

You paid for it personally and weren't reimbursed.
The expense directly relates to earning your income.
You have a record (usually a receipt).

💡 Tap any deduction below to expand the full ATO reasoning, claiming guidance, and records you need to keep.

✓Fully deductible14 items

These expenses are claimable at 100% of the cost. Keep your receipts and claim them on your return.

🪪

Real Estate Institute licence renewal

Annual real estate licence renewal fees are deductible.

📋 Why this matters

Subscriptions and memberships to industry bodies, unions, and professional associations are deductible when they relate to your current employment under Section 8-1 of ITAA 1997. Mandatory licences and registrations required to perform your job (AHPRA, electrical licence, real estate licence, etc.) are also fully deductible.

✅ How to claim

Claim the full annual fee in the year you paid it. Claim under item D5 (Other work-related expenses).

📁 Records to keep

Invoice or receipt from the association/regulator showing the amount and period of cover.

💡 Pro tipIf you joined mid-year, claim only the portion you paid (not the full annual fee). If your employer reimbursed you, you cannot claim — even partially.

🎓

CPD courses (mandatory for licence)

CPD required to maintain your real estate licence is deductible.

📋 Why this matters

✅ How to claim

Claim the full annual fee in the year you paid it. Claim under item D5 (Other work-related expenses).

📁 Records to keep

Invoice or receipt from the association/regulator showing the amount and period of cover.

💡 Pro tipIf you joined mid-year, claim only the portion you paid (not the full annual fee). If your employer reimbursed you, you cannot claim — even partially.

📄

REI state body membership

REINSW/REIV/REIQ membership fees relevant to your role are deductible.

📋 Why this matters

✅ How to claim

Claim the full annual fee in the year you paid it. Claim under item D5 (Other work-related expenses).

📁 Records to keep

Invoice or receipt from the association/regulator showing the amount and period of cover.

💡 Pro tipIf you joined mid-year, claim only the portion you paid (not the full annual fee). If your employer reimbursed you, you cannot claim — even partially.

👔

Compulsory branded uniform

Distinctive employer-branded clothing is deductible (conventional business attire is not).

📋 Why this matters

The ATO accepts deductions for clothing that is 'occupation specific' (clearly identifies you as belonging to a particular profession), 'protective' (provides protection from work-related risks), or a 'compulsory uniform' (distinctive to your employer, registered on the ATO Register of approved uniforms, and enforced by a strict workplace policy). Conventional clothing — even if your employer requires it — is never deductible.

✅ How to claim

Claim the full purchase cost in the year of purchase. Keep your receipt. If you bought items in multiple transactions, total them on your return under 'Work-related clothing, laundry and dry cleaning expenses' (item D3).

📁 Records to keep

Receipt showing date, vendor, item and amount. Photo of the item (showing logo/distinctive features) helps in an ATO review.

💡 Pro tipIf your total work-related clothing, laundry and dry cleaning claim is $300 or less for the year, you don't need written evidence — but the ATO can still ask you to explain how you calculated it.

💾

CRM and sales tracking software

Software used for client and listing management is deductible.

📋 Why this matters

This expense is fully deductible because it directly relates to earning your income as a real estate agent and meets the three ATO tests: (1) you paid for it personally, (2) it's directly connected to your work, (3) it's not private or domestic in nature. Software used for client and listing management is deductible.

✅ How to claim

Claim the full amount in the year of purchase under the appropriate item on your tax return (typically D5 'Other work-related expenses' for most items).

📁 Records to keep

Keep your receipt or invoice for at least 5 years from the date you lodge your return. The ATO can request substantiation at any time during that window.

💡 Pro tipIf you weren't reimbursed by your employer and the expense relates to earning your income, claim it. Better to claim small amounts than miss out — Australians collectively under-claim by hundreds of millions each year.

🎯

Marketing co-contributions for listings

Marketing you fund personally for your listings is deductible.

📋 Why this matters

This expense is fully deductible because it directly relates to earning your income as a real estate agent and meets the three ATO tests: (1) you paid for it personally, (2) it's directly connected to your work, (3) it's not private or domestic in nature. Marketing you fund personally for your listings is deductible.

✅ How to claim

Claim the full amount in the year of purchase under the appropriate item on your tax return (typically D5 'Other work-related expenses' for most items).

📁 Records to keep

Keep your receipt or invoice for at least 5 years from the date you lodge your return. The ATO can request substantiation at any time during that window.

🚩

Open home signage and flags

Signage you purchased for your listings is deductible.

📋 Why this matters

This expense is fully deductible because it directly relates to earning your income as a real estate agent and meets the three ATO tests: (1) you paid for it personally, (2) it's directly connected to your work, (3) it's not private or domestic in nature. Signage you purchased for your listings is deductible.

✅ How to claim

Claim the full amount in the year of purchase under the appropriate item on your tax return (typically D5 'Other work-related expenses' for most items).

📁 Records to keep

Keep your receipt or invoice for at least 5 years from the date you lodge your return. The ATO can request substantiation at any time during that window.

📇

Business cards and personal branding

Self-funded marketing materials are deductible.

📋 Why this matters

✅ How to claim

Claim the full amount in the year of purchase under the appropriate item on your tax return (typically D5 'Other work-related expenses' for most items).

📁 Records to keep

Keep your receipt or invoice for at least 5 years from the date you lodge your return. The ATO can request substantiation at any time during that window.

📚

Reference materials and industry subscriptions

Real estate publications and data subscriptions are deductible.

📋 Why this matters

This expense is fully deductible because it directly relates to earning your income as a real estate agent and meets the three ATO tests: (1) you paid for it personally, (2) it's directly connected to your work, (3) it's not private or domestic in nature. Real estate publications and data subscriptions are deductible.

✅ How to claim

Claim the full amount in the year of purchase under the appropriate item on your tax return (typically D5 'Other work-related expenses' for most items).

📁 Records to keep

Keep your receipt or invoice for at least 5 years from the date you lodge your return. The ATO can request substantiation at any time during that window.

🏨

Conference fees (AREC, real estate events)

Industry conferences are deductible.

📋 Why this matters

Self-education expenses are deductible when the course (a) maintains or improves the skills you currently use to earn your income, OR (b) is likely to result in increased income from your current role (Taxation Ruling TR 2024/3). It's NOT deductible when the course leads to a new career, new field, or just 'general' knowledge.

✅ How to claim

Claim under item D4 (Work-related self-education expenses). Includes course fees, textbooks, stationery, internet, depreciation on a computer used for study, and travel from work (NOT home) to the place of study.

📁 Records to keep

Course enrolment confirmation, receipts, and ideally a written statement from your employer or in your records showing how the course relates to your current role.

💡 Pro tipGovernment-subsidised courses (HECS/HELP) — the loan repayments themselves are NOT deductible. But upfront fees you paid (not loaned) are. Also, the $250 'non-deductible' threshold was abolished from 1 July 2022 — every dollar of self-education is now claimable from day one.

🛡️

Professional indemnity insurance (self-paid)

Professional indemnity insurance is deductible if not covered by employer.

📋 Why this matters

✅ How to claim

Claim the full annual fee in the year you paid it. Claim under item D5 (Other work-related expenses).

📁 Records to keep

Invoice or receipt from the association/regulator showing the amount and period of cover.

💡 Pro tipIf you joined mid-year, claim only the portion you paid (not the full annual fee). If your employer reimbursed you, you cannot claim — even partially.

🛡️

Income protection insurance

Income protection premiums paid outside super are deductible.

📋 Why this matters

Income protection insurance premiums are deductible because the policy protects your taxable income — if you can't work, the policy pays you a taxable benefit. Set out in TR 95/29 and ITAA 1997 Section 8-1. This applies ONLY to premiums paid outside super (if your insurance is inside your super fund, the fund claims it, not you).

✅ How to claim

Claim the annual premium under D15 (Other deductions — gifts, donations, cost of managing tax affairs, premiums for income protection insurance).

📁 Records to keep

Insurance policy document and proof of premium payment (bank statement, receipt).

💡 Pro tipLife insurance, total and permanent disability (TPD), and trauma insurance premiums are NOT deductible — only income protection. If your premium covers multiple types, ask your insurer for a breakdown.

🧾

Cost of managing tax affairs

Tax agent fees paid last year are deductible on this year's return.

📋 Why this matters

Fees you pay a registered tax agent (or accountant) for preparing and lodging your tax return are deductible in the year you paid them. Set out in Section 25-5 of ITAA 1997.

✅ How to claim

Claim under item D10 (Cost of managing tax affairs). This is one of the few deductions claimed on the return for the SAME year you paid (not the year being lodged).

📁 Records to keep

Tax agent invoice and proof of payment.

💡 Pro tipThe fee you paid LAST YEAR to lodge LAST YEAR's return is claimable on THIS YEAR's return. Travel to your tax agent's office is also deductible. So is the cost of tax software (etax.com.au, TaxFox, etc.).

🅿️

Parking and tolls (inspections, client meetings)

Parking and tolls during work-related travel are deductible.

📋 Why this matters

This expense is fully deductible because it directly relates to earning your income as a real estate agent and meets the three ATO tests: (1) you paid for it personally, (2) it's directly connected to your work, (3) it's not private or domestic in nature. Parking and tolls during work-related travel are deductible.

✅ How to claim

Claim the full amount in the year of purchase under the appropriate item on your tax return (typically D5 'Other work-related expenses' for most items).

📁 Records to keep

Keep your receipt or invoice for at least 5 years from the date you lodge your return. The ATO can request substantiation at any time during that window.

◐Partially deductible5 items

These costs are split between work and private use. You can only claim the work-use percentage — keep a 4-week diary or 12-week logbook to support the apportionment.

📱

Mobile phone (work-related use)

Work-related calls, messages and data are deductible at the work-use percentage based on a 4-week log.

📋 Why this matters

Your phone is a private asset that you sometimes use for work. The ATO requires you to identify the 'work-use percentage' based on actual usage records, and only that percentage of your bill is deductible. This is set out in TR 98/14 and PCG 2017/D7. The work-use must be 'reasonable and verifiable' — you can't just claim 50% because it feels right.

✅ How to claim

Keep a representative 4-week diary recording every work-related call, text and data session. Calculate the percentage of total usage. Apply that percentage to your annual bill. Claim under D5 (Other work-related expenses).

📁 Records to keep

Your phone bill plus a 4-week usage diary. The diary should record date, duration/data, and whether each item was work or private.

💡 Pro tipCommon mistake: claiming 100% work-use. The ATO almost never accepts this for employees because you'd need separate work and personal phones. Be realistic — 30-50% is typical for most jobs.

🌐

Home internet (work-related use)

The work-related proportion of your home internet is deductible based on usage records.

📋 Why this matters

Like your phone, your home internet is a shared private/work asset. Only the work-use percentage of the bill is deductible under TR 93/30. The ATO accepts apportionment based on time spent on work activities online, data usage logs, or other reasonable methods.

✅ How to claim

Track 4 weeks of typical internet use. Estimate the work-related percentage (work-from-home, CPD courses, work emails after hours). Apply to your annual internet bill. Claim under D5.

📁 Records to keep

Internet bill plus a usage diary or written estimation of work-related hours/data.

💡 Pro tipIf you use the ATO's 70c/hour 'fixed rate' method for working from home, you CANNOT separately claim internet — it's already included in the 70c rate. You'd need to use the 'actual cost' method to claim internet separately.

💻

Laptop or computer (work use)

The work-related percentage of a personal laptop used for work is deductible; items over $300 are depreciated.

📋 Why this matters

This is a 'mixed-use' expense — partly for work, partly private. The ATO requires you to identify the work-use portion using a 'reasonable and verifiable' method (TR 93/30). Only the work portion is deductible. The work-related percentage of a personal laptop used for work is deductible; items over $300 are depreciated.

✅ How to claim

Determine the work-use percentage based on a representative period (typically a 4-week diary for ongoing costs like phone/internet, or a 12-week logbook for vehicle costs). Apply that percentage to the total cost.

📁 Records to keep

Keep both the original invoice/bill AND your diary or logbook showing how you calculated the work-use percentage. Both are required if the ATO asks.

💡 Pro tipThe ATO accepts reasonable estimates supported by your records. Don't claim 100% work use of shared assets — it's the #1 red flag in their review systems.

🚗

Car expenses (logbook method, between properties)

Travel between properties, inspections and the office is deductible; commute is not.

📋 Why this matters

Work-related vehicle expenses are deductible when you use your car for work (not commuting). Eligible: travelling between workplaces, to clients, to other work locations during your shift. Ineligible: home-to-work commute. Two methods are allowed: cents-per-kilometre (88c/km in FY25, max 5,000km, no logbook needed) OR logbook method (12-week logbook gives a work-use %, applied to all car costs).

✅ How to claim

Decide which method gives the bigger claim. For under 5,000 work km/year, cents-per-km is simpler. For above, the logbook method is almost always better because there's no cap.

📁 Records to keep

For cents-per-km: a diary or reasonable basis showing work km. For logbook: 12 consecutive weeks of every trip (date, odometer start/end, purpose), plus all receipts for the year (fuel, rego, insurance, servicing, depreciation). Logbook is valid for 5 years.

💡 Pro tipCommon audit trap: claiming home-to-work travel because you 'check emails on the way' or 'carry tools.' Only the bulky-tools exception (no secure storage at site, tools too heavy for public transport) makes commute deductible — and the ATO is strict on what 'bulky' means.

🏠

Home office running costs

Electricity, gas, and depreciation of office furniture used for work are deductible (70c/hr fixed rate or actual cost method).

📋 Why this matters

When you work from home, you incur additional running costs (electricity, gas, internet, phone, depreciation of office furniture and equipment). The ATO offers two methods to claim these under PCG 2023/1: the 'fixed rate' method (70c per hour worked from home, covers all running costs except depreciation of furniture/equipment) or the 'actual cost' method (calculate each cost individually, more work but often higher).

✅ How to claim

Keep a record of hours worked from home (a timesheet, calendar entries, or work-from-home log). For the fixed rate: hours × $0.70 = deduction. For actual cost: apportion each utility bill by % of home used for work + work hours.

📁 Records to keep

Hours worked from home is MANDATORY from 1 March 2023 — estimates are no longer accepted. Use a diary, app log, or work calendar.

💡 Pro tipFor most employees, the 70c/hour fixed rate is simpler and gives a similar result to actual cost. But if you have a dedicated home office and high electricity bills (FIFO workers, content creators), actual cost can be substantially more — worth the extra paperwork.

✗Not deductible1 items

Common audit traps. Claiming these can trigger ATO review and penalties. Knowing what NOT to claim is just as important.

👔

General clothing (non-uniform)

Conventional clothing worn to work is not deductible, even if your employer requires it.

📋 Why this matters

✅ How to claim

📁 Records to keep

Receipt showing date, vendor, item and amount. Photo of the item (showing logo/distinctive features) helps in an ATO review.

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Frequently asked questions

What's the simplest way to track real estate agent deductions during the year?

Keep a separate folder or app (like Receipt Bank or your phone's notes) and capture every work-related receipt as you spend. The 'shoebox approach' costs most real estate agents thousands in lost refunds each year.

Can I claim something my employer reimbursed?

No. If you've been reimbursed (or it was salary-packaged), you can't claim a deduction for it as well.

Do I need receipts for everything?

You need a receipt or written record for any deduction. For laundry up to $150 and small expenses up to $300 in total, you can use the ATO simplified methods without keeping every receipt.

What's the difference between deductible and partial?

Fully deductible means you can claim 100% of the cost. Partial means it's split between work and private use — you can only claim the work-use percentage based on a diary or logbook.

How long do I need to keep my receipts?

Five years from the date you lodge your tax return. The ATO can ask for records anytime in that window.

Source: This guide is based on published ATO occupation guidance, current tax rulings, and the Income Tax Assessment Act 1997. For your specific circumstances, consult a registered tax agent. Always verify rules at ato.gov.au.