Tool deductions

 Author: JayATO(Community Support)Community Support

26 Feb 2026

Hi @Deokbae,

You're on the right track. To claim tool deductions in the ATO app or myTax, use the 'Other work-related expenses' section. There isn't a separate category specifically labelled 'tools'.

When you add your expense in the 'Other work-related expenses' section, you'll be able to enter a description (such as 'tools') and the amount you're claiming.

If your tools cost more than a certain amount, you can use the Depreciation and capital allowances tool to work out the decline in value, rather than claiming the full cost upfront. You can access this tool when you're adding your other work-related expenses.

The steps are:

• in myTax, go to the Deductions section and select 'Other work-related expenses'
• select 'Add' to create a new expense entry
• enter a description (like 'tools') and the amount
• if needed, use the Depreciation and capital allowances tool for items that decline in value over time
• select 'Save'.

Remember, you'll need to keep records of your tool purchases for five years from the date you lodge your tax return. The myDeductions tool in the ATO app can help you keep track of these expenses, including storing photos of your receipts.

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