Course overview

The material develops a structured approach to determining whether an expense is deductible, identifying the governing provision, applying exclusions, substantiating the claim and managing the interaction between actual work-related deductions and the 2026–27 standard deduction. It also addresses motor vehicle and travel expenses, clothing, home office costs, interest, prepayments, repairs, start-up costs and self-education.

The content is organised into five lessons that progress from general deduction principles and evidence requirements to applied expense categories and a professional review toolkit. Native Word tables, scenarios, calculations, flowcharts and the final assessment support practical application by tax agents, BAS agents, accountants and other professional advisers.

Course objectives

Explain the general deduction test, the positive and negative limbs, and the need for apportionment.
Apply the 2026–27 standard deduction and substantiation requirements to employee and business expenses.
Determine the correct treatment of motor vehicle, travel, clothing and working-from-home expenses.
Analyse interest, prepayments, telephone, repairs and business start-up expenditure using the applicable rules.
Assess self-education expenditure and complete a consistent professional deduction review.

Learning outcomes

You should be able to determine whether an outgoing has the required connection with assessable income or business activities.
You should be able to calculate the interaction between specified actual work-related deductions and the statutory standard deduction.
You should be able to select and substantiate an appropriate motor vehicle, travel or home office claim method.
You should be able to distinguish deductible revenue expenditure from private, capital, reimbursed or otherwise excluded amounts.
You should be able to document a professional deduction conclusion using the supplied tables, evidence prompts and review tools.

CPD/CPE compliance mapping

The mapping indicates how the learning outcomes align with broad technical and professional development expectations. It does not determine whether a particular activity satisfies the rules of a professional body or regulator. Lesson outcomes and CPD/CPE alignment

Lesson	CPA Australia	CA ANZ	IPA	Tax Practitioners Board
Deduction foundations and evidence	Australian taxation technical knowledge, substantiation and professional judgement.	Tax technical competence, statutory interpretation and evidence-based application.	Applied income tax knowledge and professional competence.	Tax law knowledge relevant to competent tax agent services and record keeping.
Motor vehicles and travel	Technical application of car, travel and allowance rules.	Application of calculation methods and substantiation requirements.	Practical taxation knowledge for employment and business expenses.	Competent treatment of work-related deductions and supporting records.
Clothing and working from home	Contemporary work expense knowledge and method selection.	Professional analysis of private, protective and home-office expenditure.	Applied individual taxation and compliance knowledge.	Accurate application of current work-related expense rules.
Finance and business expenditure	Interest tracing, timing, repairs and small business expenditure knowledge.	Application of revenue and capital distinctions and timing rules.	Business taxation and professional judgement.	Competent advice on business deductions and integrity requirements.
Self-education and deduction review	Self-education analysis, calculation and professional documentation.	Evidence-based tax analysis and quality-control procedures.	Professional competence in individual and business tax deductions.	Maintaining current tax knowledge and applying it accurately in client services.