ATO myDeductions App Guide 2025: Track Expenses All Year
Stop scrambling for receipts at tax time. The free ATO myDeductions app makes it easy to track work expenses, car trips, and deductions all year long.
IntuitiveCalc Team
Financial Content Specialist
The ATO myDeductions app is a free, official Australian Tax Office tool that helps you track deductions throughout the year. No more digging through shoe boxes of receipts at tax time - just snap photos, log trips, and export everything when you're ready to lodge.
Why Use myDeductions?
- 100% free - no subscriptions or premium features
- Official ATO app - accepted by tax agents and myTax
- Simple photo receipts with automatic date/amount detection
- Trip tracker for work-related car travel
- Export directly to your tax return or tax agent
Table of Contents
Getting Started with myDeductions
Download the App
The myDeductions app is available free on both iOS and Android:
Initial Setup
When you first open the app, you'll need to:
- Accept terms - Standard privacy and terms of use
- Set a PIN - 4-digit code to protect your data
- Choose your profile - Employee, sole trader, or rental property owner
- Start the financial year - Usually auto-detects current year
No myGov Login Required
myDeductions works completely offline and doesn't require linking to your myGov account to record expenses. You only need myGov when exporting to myTax at tax time.
Tracking Work Expenses
Recording expenses is quick and easy with the app's camera and smart detection features.
How to Add an Expense
- 1 Tap the + Add button on the home screen
- 2 Choose Expense (or Trip, Income, etc.)
- 3 Take a photo of the receipt or select from gallery
- 4 App auto-detects date and amount (verify it's correct)
- 5 Select the category (e.g., uniform, tools, travel)
- 6 Add a description explaining work connection
- 7 Tap Save
What Makes a Good Record
The ATO requires records to substantiate deductions. A good record includes:
| Element | What to Record | Example |
|---|---|---|
| Date | When expense incurred | 15/03/2025 |
| Amount | GST-inclusive price paid | $189.00 |
| Supplier | Who you paid | Officeworks Parramatta |
| Description | What you bought | Laptop bag for work |
| Work Connection | Why it's deductible | For carrying work laptop between offices |
Always Add Work Connection
The description field is crucial. Don't just write "laptop bag" - explain why it's work-related. This protects you in an ATO audit.
Recording Car Trips
The app has a built-in trip recorder that uses your phone's GPS to track work-related car travel. This is perfect for the cents per kilometre method (88c/km for 2024-25).
Starting a Trip
Option 1: GPS Tracking
- 1. Tap + Add > Trip
- 2. Tap "Start Trip"
- 3. Drive to destination
- 4. Tap "End Trip"
- 5. Add description & save
Option 2: Manual Entry
- 1. Tap + Add > Trip
- 2. Enter start location
- 3. Enter end location
- 4. App calculates distance
- 5. Add description & save
What Trips Can You Claim?
| Deductible | Not Deductible |
|---|---|
| Between work locations | Home to regular work |
| Client visits from office | Work to home |
| Picking up work supplies | Personal errands |
| Attending work training | Private trips during lunch |
| Home to work (if carrying bulky tools) | Trips reimbursed by employer |
Cents Per Km Example
Work trips logged in myDeductions: 2,450 km
Rate for 2024-25: 88 cents per km
Deduction: 2,450 x $0.88 = $2,156
*Maximum 5,000 km using this method
Expense Categories Explained
myDeductions includes pre-set categories matching the ATO's deduction labels. Here's what goes where:
| Category | What to Include | Examples |
|---|---|---|
| Work from Home | Home office expenses | Desk, chair, % of electricity, internet |
| Car Expenses | Work-related car costs | Fuel, rego, insurance (if logbook) |
| Clothing/Laundry | Uniforms, protective clothing | Hi-vis, steel caps, occupation-specific |
| Self-Education | Courses related to current job | Course fees, textbooks, stationery |
| Tools & Equipment | Items used for work | Power tools, laptop, software |
| Phone & Internet | Work % of usage | Mobile plan, home internet |
| Travel | Work trips (not commuting) | Flights, accommodation, meals |
| Union Fees | Professional memberships | Union dues, association fees |
| Other | Anything else work-related | Tax agent fees, income protection |
$300 Receipt Rule
For work expenses totaling $300 or less (excluding car, travel, meal allowance), you don't need receipts - but you still need to have spent the money and have some record (like bank statement or myDeductions entry).
Rental Property Records
If you own an investment property, myDeductions has a dedicated rental property section to track income and expenses.
What to Record
Income
- Rent received
- Bond kept
- Insurance payouts
- Other payments from tenants
Expenses
- Property management fees
- Council rates
- Insurance premiums
- Repairs and maintenance
- Interest (track separately)
Property Manager Statements
If you use a property manager, they'll provide an annual summary. You can still use myDeductions for out-of-pocket expenses like repairs you pay directly.
Using Data at Tax Time
When tax time comes (July onwards), you have several options for using your myDeductions data:
Option 1: Export to myTax
- Open myDeductions app
- Tap Export/Share
- Choose Upload to ATO
- Sign in to myGov
- Data pre-fills in myTax
- Review and adjust amounts as needed
Option 2: Share with Tax Agent
- Tap Export/Share
- Choose Email or PDF
- Send to your tax agent
- They import into their system
Option 3: Manual Entry
View your totals by category in the app and manually enter into myTax or give to your accountant.
Best Practice: Export Early
Export your data before you start a new financial year in the app. This ensures you have a backup of all records from the completed year.
Pro Tips for Maximum Refunds
1. Record Immediately
Don't wait - snap the receipt as soon as you buy something. It takes 10 seconds and saves hours at tax time.
2. Backup Regularly
Export a PDF backup monthly or quarterly. If your phone dies, you won't lose everything.
3. Use Detailed Descriptions
"Laptop bag for carrying work computer between office and client sites" is better than just "bag".
4. Track Everything
Even small expenses add up. That $15 work parking, $8 stationery - track it all.
5. Set Reminders
Weekly reminder to check for any receipts you might have missed logging.
6. Know Your Profession
Different professions have different deductions. Nurses can claim scrubs, tradies can claim tools, teachers can claim resources.
Common Mistakes to Avoid
1. Claiming Without Evidence
Even if you don't need receipts for <$300, you need some record that you actually spent the money.
2. Claiming Personal Expenses
If it's not directly for work, it's not deductible. Generic clothing (even suits) isn't claimable.
3. Forgetting to Apportion
Phone used 50% for work? Only claim 50%. Internet used 20% for work? Only claim 20%.
4. Not Recording Car Trips
Many people forget to log work car trips. At 88c/km, those add up fast.
Related Calculators & Resources
Income Tax Calculator
See how deductions reduce your tax bill.
WFH Deductions Guide
Complete guide to home office deductions.
Tax Return Checklist
Everything you need for tax time.
Deductions by Profession
Specific deductions for your job type.
Key Takeaways
- 1. myDeductions is 100% free - download from App Store or Play Store
- 2. Snap receipts immediately - don't wait until tax time
- 3. Use the trip tracker for work car travel (88c/km)
- 4. Always add work connection in descriptions
- 5. Export regularly as backup
- 6. Upload directly to myTax or share with your tax agent
Disclaimer: This guide provides general information about using the ATO myDeductions app as of January 2025. It is not tax advice. Your specific deductions depend on your individual circumstances. Please consult a registered tax agent or the ATO website for advice specific to your situation.