Hospitality tax deductions for 2025-26: what a casual can claim by 31 October, and why your black pants don't count

The black pants and white shirt your venue told you to buy are worth $0 on your tax return. The ATO says so by name: its clothing guidance, last updated on 14 September 2026, lists a bartender's black trousers and white shirt as something you can't claim, and it doesn't matter that the uniform policy made them compulsory.

A fair bit of what a bar or cafe casual spends is claimable, though, and 2025-26 is the last year the old no-receipt limits apply. Here's the list the ATO actually works from, a two-venue claim worked through to the cent, and what changes on next year's return.

Short version: you can claim a logo shirt, an apron, non-slip shoes, renewing (not getting) your RSA, and driving directly from one job to another. You can't claim black pants, a plain white shirt, grooming, food on shift, or the trip from home. If you lodge yourself, the due date is 31 October, which is a Saturday this year, so it rolls to Monday 2 November 2026. A deduction saves you your tax rate, not its face value. This is general information, not tax advice.

Why your black pants don't count

The ATO's test is about the clothing, not your manager's policy. Work clothing is only deductible if it's occupation-specific, protective, a compulsory uniform, or a registered non-compulsory uniform. Everything else is conventional clothing, and that stays a private expense even if you only ever wear it at work.

The ATO's hospitality guide draws the line with a barista. Pablo's cafe requires a shirt with its logo embroidered on it, black pants and closed black shoes. He can claim the shirts. He can't claim the pants or the shoes, because being told what colour to wear doesn't turn everyday clothes into a uniform.

What a bar or cafe casual can and can't claim

Two on that list catch people out. The ATO's phone guidance says a casual can't claim calls or texts when an employer contacts you to ask you to work, or when you ring around checking what's available. The drive home after a late close is private too: the ATO's own example is a waitress whose only bus stops running at 7pm, and she still can't claim it, which makes it worth knowing who pays for the ride home instead.

A worked claim across two venues

Here's a casual who works Saturday lunch at a Surry Hills cafe, then drives straight to a Saturday night shift at a Newtown pub, with a 2025-26 taxable income between $18,201 and $45,000. Two payers come with their own tax and super maths, so this is just the deductions. Prices are example amounts. The rules and rates are the ATO's.

$345.80 of deductions puts $55.33 back in your pocket. A deduction is worth your tax rate, not the price tag.

Add about $6.92 if you also pay the 2% Medicare levy. On a working holiday maker's 15c rate, the same claim is worth $51.87. And if your whole year came in under the $18,200 tax-free threshold, deductions don't change your tax at all.

Notice what this casual doesn't need: receipts. The clothing and laundry add up to $205, under the ATO's $300 limit for 2025-26, so they only need to show they spent the money and how they got each figure. Car expenses sit outside that limit with their own rules, so keep a note of how you worked out the kilometres.

2025-26 is the last year of no-receipt claims

From 2026-27, eligible Australian tax residents who earn income from work get a standard deduction of up to $1,000 without keeping receipts. The ATO says the measure is now law, started on 1 July 2026, and doesn't apply to the 2025-26 return you're lodging now.

The catch is spelled out in the ATO's draft ruling LCR 2026/D5, published 26 August 2026. Itemise clothing or laundry next year and every dollar comes off your standard deduction, and you'll need written evidence, although the $1 a load method only needs a record of how many loads you did. The standard deduction is for Australian tax residents, so a working holiday maker who isn't one should be keeping receipts already, since 2026-27 started on 1 July.

How to lodge before the deadline

1. Open myTax through myGov. It pre-fills most of your income, so check every venue you worked at is there, including the one you left in March.
2. Work through the checklist above. Count laundry loads and between-job kilometres off your old rosters, and write down how you got each number.
3. Keep the records for 5 years from the day you lodge. Photos of receipts count, and the myDeductions tool in the ATO app will store them for you.
4. Lodge by Monday 2 November 2026 if you're doing it yourself. If your return ends in a tax bill, payment is due by 21 November, and interest can apply after that.
5. Using a registered tax agent? Engage them before 31 October. Agents can lodge for their clients later than 31 October, but you have to be on their books by then.

Shifts that show the pay before you say yes

Tax time is when most casuals piece together what the year actually paid. Shiftly is free workforce management for Australian venues with an on-demand staffing network built in, so the roster fills itself instead of a manager ringing around at 4pm. Workers on the network get offered nearby shifts, see the venue, hours and pay before accepting, and get paid fast once the shift's done. Shiftly facilitates the match and isn't anyone's employer: the venue engages you directly as an independent contractor, so you'll need an ABN and you handle the tax on that income, which works differently to the employee claims above. Find shifts on Shiftly.

Frequently asked questions

Is RSA tax deductible?

Only the renewal. The ATO says you can't claim the cost of getting your initial RSA certificate, because it's a cost of getting a job, but you can claim the cost of renewing it during the period you're working. If the venue paid for it or reimbursed you, there's nothing to claim.

How does the $1 per load laundry deduction work?

The ATO accepts $1 for a load of only claimable work clothing and 50c for a load mixed with your own clothes. Only claimable clothing counts, so washing black pants and a plain white shirt earns nothing. For 2025-26, laundry claims of $150 or less don't need written evidence, but you still need to be able to show how you worked out the number of loads.

Can working holiday makers claim tax deductions?

Yes. Working holiday maker rates apply to taxable income, which is your income after deductions, so a genuine work expense cuts your tax at 15c in the dollar on income up to $45,000. The catch is you only see that money by lodging, and the ATO doesn't require a working holiday maker earning under $45,001 to lodge at all. The backpacker tax guide covers the rest of the maths.

What happens if I miss the 31 October deadline?

Lodge as soon as you can. If you're lodging yourself and you owe tax, payment is still due by 21 November, and interest can apply to anything unpaid after that. If you're struggling to lodge or pay on time, the ATO asks you to contact it as soon as possible rather than going quiet.