Tax Deductions for Real Estate Agents (Australia 2025-26)

General information only. Speak with a registered tax agent for advice.

Real estate agents can claim a broad range of work-related deductions — but the ATO watches this group closely because commission-based income creates large year-to-year swings that can mask inflated claims. The core rule is the same as every occupation: an expense must have a direct connection to earning your income, must not be reimbursed by your employer or principal, and must be backed by records. If an expense is partly private, you can only claim the work portion.

What you can claim

Deduction	Typical range	Key rule
Car expenses — inspections, open homes, client meetings	$2,000–$8,000	Logbook method (12-week log, updated every 5 years) or 88c/km up to 5,000 km. Home-to-office travel is NOT deductible.
Mobile phone (work portion)	$300–$900	Keep a 4-week usage diary. Most agents claim 70–90% work use. Apportion the plan cost plus any handset depreciation.
Internet (work portion)	$100–$400	Apportion based on work vs personal use. Usually 30–60% for agents who work from home part of the time.
Professional development and CPD	$200–$800	Must be directly connected to your current role as an agent. Registration, travel to courses, and course materials all qualify.
Licensing and membership fees	$300–$700	Real estate licence renewal fees, state-based registration, REIV/REIA membership dues.
Home office expenses	$200–$800	Use the ATO fixed rate of 67c/hour for all hours worked from home, or claim actual running costs. Keep a diary of hours.
Work-related stationery and printing	$100–$400	Printed listing brochures, for-sale signage you personally fund, and stationery not supplied by your office.
Marketing materials (self-funded)	$200–$1,000	Only if you personally pay and are not reimbursed. Get written confirmation from your principal if amounts are disputed.
Tools and equipment	$50–$500	Lockboxes, tape measures, phone stands, and similar items. Items over $300 must be depreciated over their effective life.
Sunscreen and sun protection	$50–$150	Outdoor open homes justify claiming sunscreen, sunglasses, and hats used while working outside.
Tax agent fees	$150–$400	The fee your tax agent charges to prepare your return is fully deductible in the year you pay it.
Self-education (directly role-related)	$500–$2,000	A short course on negotiation, property law, or sales technique qualifies. A degree to change careers does not.

What you cannot claim

• General business suits and professional clothing. A suit or dress you wear to client meetings is not a uniform. The ATO is explicit: conventional clothing is a private expense, even if your employer expects you to dress well.
• Client entertainment and meals. Australia has no deduction for entertainment under s 32-5 of ITAA 1997. Taking a vendor or buyer to lunch is not deductible, regardless of the business purpose.
• Client gifts above trivial value. A small branded item (under ~$30) may be acceptable as a promotional expense if it carries your logo, but cash, wine, or gift cards are not deductible.
• Parking at your regular workplace. Parking fees at your principal agency office are not deductible. Parking at a property inspection or client meeting is deductible.
• Home-to-office travel. The commute from home to your agency is a private expense regardless of how far you travel or how early you start.

Worked example

Emma is a licensed agent in Melbourne earning $95,000 in commissions and salary in 2025-26. She maintains a logbook showing 72% work use of her car and works from home two mornings per week.

Item	Amount
Car expenses (logbook, $12,500 total car costs × 72%)	$9,000
Mobile phone (85% work, $1,200 annual plan)	$1,020
Internet (40% work, $900 annual)	$360
Licensing renewal and REIV membership	$620
CPD courses	$450
Home office (67c × 200 hours)	$134
Stationery and marketing materials	$380
Tax agent fee	$275
Total deductions	$12,239

At Emma’s marginal rate of 32% (30% + 2% Medicare), these deductions reduce her tax by approximately $3,916.

ATO audit triggers

• Unusually high car claims relative to income. The ATO benchmarks agents against peers. Claiming $15,000+ in car expenses on $70,000 income without a logbook is a red flag.
• No apportionment on phone and internet. Claiming 100% of a mobile plan or home internet bill suggests the agent hasn’t genuinely split private and work use.
• Marketing expenses without documentation. Large self-funded marketing claims require invoices and evidence that the expense was not reimbursed by the agency.
• Commission income with very low deductions in high-earning years, then large deductions in low years. This pattern can look like timing manipulation to the ATO’s data-matching systems.

Records you need

• Logbook for car claims — 12 consecutive weeks, recording start and end odometer, destination, and business purpose for every trip.
• Phone and internet usage diary — a 4-week representative sample is acceptable; note work calls and work browsing separately.
• Receipts and invoices for all expenses over $300, and strongly advisable for any amount.
• Written confirmation from your principal or agency confirming you were not reimbursed for expenses you are claiming.
• Home office diary — dates and hours worked from home if using the fixed-rate method.

Key takeaways

• Your biggest deduction is almost always car travel — invest the time in a proper 12-week logbook because it consistently produces higher claims than the cents-per-kilometre method for high-km agents.
• Phone apportionment is scrutinised. A defensible 4-week diary beats a round number.
• You cannot claim entertainment or conventional clothing, no matter how normal it is to the industry.
• Keep all records for at least 5 years from the date you lodge your return.

Sources

• ATO: Deductions you can claim
• ATO: Occupation and industry specific guides

Next step

• Estimate your refund with the Tax Return Calculator
• Model taxable income in the Income Tax Calculator

Occupation guides

• Tax for Real Estate Agents — car travel, phone, open-home costs
• Tax for Property Managers — car travel, inspections, clothing