Tax Deductions for Hospitality Workers (2025–26)

Updated for the 2025–26 income year, with 2026–27 changes noted. Reviewed 19 October 2026.

Chefs, cooks, kitchen hands, bar staff, baristas, waiters and hotel staff can claim more than they might think: knives, protective gear, licence renewals and laundry are common deductions.

This guide covers 2025–26 tax returns (lodged from July 2026) and flags what changes in 2026–27. It follows the ATO's Hospitality industry workers – income and work-related deductions guide, rewritten in plain language with practical examples.

What you can claim

Hospitality-specific costs

• Non-slip shoes, aprons, chef's whites and checks, cut-resistant gloves and other protective items.
• Knives and kitchen tools you buy for work ($300 rule applies), plus sharpening.
• Renewal of responsible service of alcohol or gaming certificates and food safety certificates you need for your current job (not the first).
• Hiring equipment you're required to supply.
• Taxis or ride-share between two workplaces on the same day.
• Award transport payments: if you receive them, you can claim the matching transport expense.

Uniforms, protective clothing and laundry

Compulsory uniforms, registered non-compulsory uniforms, occupation-specific clothing and protective clothing are claimable, along with the cost of washing them: the ATO accepts $1 per work-only load and 50c per mixed load. Plain conventional clothing (black pants, a white shirt, business attire) is not claimable, even if your employer requires it.

Overtime meals

You can claim an overtime meal only if you received an overtime meal allowance under an industrial award or agreement and it is included in your income. Without receipts, you can claim up to the ATO's reasonable amount ($38.65 per meal for 2025–26), but you need receipts if you claim more. Meals during normal hours aren't deductible.

Phone, internet and devices

Claim the work-related percentage of your mobile phone, data and home internet. Work it out from a 4-week representative period of your itemised bills, and keep those bills. Devices over $300 are depreciated.

Training and self-education

Course fees, textbooks and seminars are claimable if they maintain or improve the skills you use in your current job, or are likely to increase your income from it. Study to get a new job, or general interest courses, can't be claimed, and neither can study loan (HELP) repayments. You can't claim costs your employer pays or reimburses.

Union and professional fees

Union fees and subscriptions to professional or trade associations related to your work are claimable. These don't reduce the 2026–27 standard deduction, so you can claim them on top of it.

What you can't claim

• Black pants, jeans, white shirts or other conventional clothing, even if your employer requires them.
• Meals and drinks during your shift.
• Travel between home and work, including late at night.
• Your first RSA or food handling certificate.

Worked example

Example (illustrative figures only – not real client data): Luca is a chef in a restaurant. He buys his own knives and non-slip shoes, launders his chef's whites, and works overtime with an award meal allowance.

2026–27 comparison: $1,190.50 of these expenses are the kind that reduce the new standard deduction. Because that is more than $1,000, claiming the actual expenses (with records) would give a bigger deduction than the standard deduction. The $300 of union or professional fees can be claimed either way.

Checklist before you lodge

• Keep receipts for knives and footwear.
• Check any overtime meal allowance on your income statement.
• Check your income statement in myGov is marked 'tax ready' and every allowance is included.
• Remove any expense your employer paid for or reimbursed.
• Apportion anything used privately and keep a note of how you worked out the percentage.

Common mistakes to avoid

• Claiming black clothing.
• Claiming meals eaten at work during normal hours.
• Claiming the first RSA course.

Record keeping

• You must have spent the money yourself and not been reimbursed, the expense must be directly related to earning your income, and you need a record to prove it.
• Keep receipts, invoices or bank statements for 5 years from when you lodge. The ATO app's myDeductions tool or photos of receipts are fine.
• If you use something for both work and private purposes, you can only claim the work-related portion – keep a diary or other evidence of how you worked that out.
• 2025–26: if your total work-related claims are $300 or less you don't need written evidence (but must be able to show how you worked the amount out), and laundry claims up to $150 can be made without written evidence using the ATO rates.
• From 2026–27: those $300 and $150 exceptions are removed. A new standard deduction of up to $1,000 applies automatically for eligible employees; if your actual work-related expenses are higher, you can claim them instead with records.

When to see an accountant

Talk to a registered tax agent if:

• you're unsure whether an expense is private or work-related, or your claims are much higher than last year;
• you have an ABN, side business or rental property as well as your job;
• you have received an ATO letter, review or amended assessment.

Related guides

• Retail workers
• Work clothing and laundry
• all occupation and industry guides

ATO sources for this guide

• ATO: Hospitality industry workers – income and work-related deductions
• ATO: Clothing, laundry and dry-cleaning expenses
• ATO myTax 2026: Work-related clothing, laundry and dry-cleaning
• ATO: Overtime meal expenses
• ATO: TD 2025/4 reasonable amounts (2025-26)
• ATO: Mobile phone, mobile internet and other devices
• ATO: Phone and internet expenses
• ATO: Self-education expenses
• ATO: Seminars, conferences and training courses
• ATO: Union fees and subscriptions
• ATO: Professional memberships and accreditations
• ATO: Records you need to keep
• ATO: Standard deduction for work-related expenses
• ATO: Copyright notice

This guide is written in our own words. It draws on information published by the Australian Taxation Office, and some short phrases are quoted with attribution. Source material: © Australian Taxation Office for the Commonwealth of Australia. Top Accountants is not endorsed by, or affiliated with, the ATO.