The tax deductions benefit calculator shows how much your work-related deductions reduce your income tax liability. The tax saving from a deduction depends on your marginal tax rate — a $1,000 deduction saves more tax for a higher income earner than for someone paying a lower marginal rate.
Work-related deductions reduce taxable income dollar for dollar, and the resulting tax saving is the deduction amount multiplied by the marginal tax rate applicable to that portion of income. Understanding this relationship helps workers appreciate the real after-tax value of their legitimate deduction claims.
Common work-related deductions include motor vehicle expenses, home office running costs, professional development and self-education expenses, professional membership fees, and tools and equipment used in work.
The ATO requires that deduction claims be supported by adequate records including receipts or invoices, vehicle log books for vehicle claims, and documentation demonstrating the direct connection between the expense and income-earning activities.
Deduction amounts and tax savings shown are estimates based on occupation averages sourced from ATO Taxation Statistics and income tax rates for 2025-26. Individual deduction entitlements vary based on specific work circumstances and available records.