Tax Deductions for Real Estate Agents & Property Managers (2025–26)

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

Sales agents, property managers and other real estate employees often spend their own money on marketing and client gifts. Many of those costs are deductible only if you earn commission or a retainer.

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

What you can claim

If you're paid commission or a retainer

• Advertising and marketing for properties and yourself.
• Decorating properties for open homes (for example, flowers).
• Client gifts such as hampers, wine or vouchers (not entertainment).
• Wages you pay an assistant, if you're paid commission only.

Other costs

• Marketing equipment such as a camera or drone (work-use portion).
• Renewal of your registration certificate or licence (not the first one, and not a police check to get the job).
• Business cards and stationery.

Car expenses between workplaces

Driving between two workplaces, from your usual workplace to an alternative site, or to a client or supplier during the day is claimable. Normal trips between home and work are private, even if you live far away or work early or late. Use the cents per km method (88c per km for 2025–26, up to 5,000 km; 91c for 2026–27) or a logbook. See our car expenses guide.

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

• Club or golf memberships.
• Entertainment gifts such as sporting or theatre tickets.
• Prescription glasses.
• Fines.
• Conventional business attire.

Leased vs financed cars

How you claim a car depends on whether it's leased, on hire purchase or owned. With hire purchase you're treated as the owner, so you claim decline in value and interest rather than the payments. If you drive more than 5,000 work kilometres, a logbook usually gives a bigger claim.

Worked example

Example (illustrative figures only – not real client data): Hamish is a sales agent paid a retainer plus commission. His logbook shows 65% work use of his car.

2026–27 comparison: $11,150 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.

Checklist before you lodge

• Confirm your pay includes commission or a retainer before claiming marketing and gifts.
• Keep a 12-week logbook.
• 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 marketing or gifts while on a salary only.
• Claiming sports tickets as gifts.
• Claiming car lease payments on a hire purchase agreement.

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

• Sales and marketing
• Car expenses
• all occupation and industry guides

ATO sources for this guide

• ATO: Real estate employees – income and work-related deductions
• ATO: Cents per kilometre method
• ATO: Trips you can and can't claim
• 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.