Tax Deductions for Retail Workers (2025–26)

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

Shop assistants, checkout operators, visual merchandisers, store managers and pharmacy assistants usually have small but genuine deductions. From 2026–27, many retail workers will be better off with the $1,000 standard deduction.

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

What you can claim

Retail costs

• Compulsory uniforms with your employer's logo, and laundering them.
• Protective items you buy (for example, non-slip shoes or gloves for stock handling).
• Union fees.
• Overnight travel when your employer requires you to work away (for example, a store opening).

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.

Working from home

If you genuinely do some of your work at home, you can use the fixed rate of 70c per hour (2025–26) with a record of your actual hours, or the actual cost method. See our working from home guide.

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

• Vaccinations, including flu shots.
• Fines.
• Travel between home and the store.
• Plain black or white clothing, even if it's the dress code.
• Grooming, makeup and hair.

Worked example

Example (illustrative figures only – not real client data): Chloe works in a department store. She buys non-slip shoes, launders her logo uniform and pays union fees.

2026–27 comparison: only $248 of these expenses reduce the standard deduction. On similar figures in 2026–27, it would usually be simpler to accept the automatic $1,000 standard deduction and not claim those items, while still claiming the $330 of union or professional fees on top.

Checklist before you lodge

• Check whether your uniform is compulsory and has a logo.
• 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 flu shots.

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

• Hospitality workers
• Work clothing
• all occupation and industry guides

ATO sources for this guide

• ATO: Retail 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: Working from home expenses
• ATO: Fixed rate method
• 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.