Engineer Tax Deductions Australia — What Engineers Can Claim

Updated

Engineers across all disciplines — civil, mechanical, electrical, structural, chemical, software, and others — can claim a range of work-related deductions. The most consistently valuable are Engineers Australia membership and CPD (required for Chartered status), technical reference subscriptions, PPE, and vehicle costs for site travel. This guide applies to both employed engineers and those operating as contractors or sole traders.

Engineers Australia Membership and Registration

  • Engineers Australia annual membership fee — fully deductible
  • Chartered Professional Engineer (CPEng) application and renewal fees — deductible
  • National Engineering Register (NER) registration fee — deductible
  • Engineering Technologists or Associates (IEAust) equivalent — deductible
  • State-based engineering licence registration (e.g., WA registered engineer) — deductible

CPD — Continuing Professional Development

Engineers Australia requires CPD for Chartered members. Deductible CPD:

  • Professional development courses and workshops
  • Engineering conference registration (nationally and domestically)
  • Technical seminars (structures, services, civil, electrical)
  • Webinars and online CPD modules
  • CPD diary and tracking tools

Study: Postgraduate engineering study (Masters, Graduate Certificate) may be deductible if it maintains or improves current engineering skills. Study for an initial engineering degree is not deductible.

Technical References and Subscriptions

Engineering work requires access to standards, codes, and technical guidance:

MaterialDeductible?
SAI Global — Australian Standards subscriptionsYes
Standards Australia individual document purchasesYes
Engineering handbooks and technical manuals (current edition)Yes
Structural design references (e.g., Steel Designer’s Handbook)Yes
NCC / Building Code of Australia reference serviceYes
Engineering journals and periodicalsYes

PPE — Protective Personal Equipment

PPE purchased personally for site work is deductible:

  • Hard hat (if personally purchased)
  • Safety glasses / goggles
  • Hi-vis vest and workwear (required for site)
  • Steel-capped boots
  • Hearing protection
  • Gloves

General work clothing worn on site that is not occupationally distinctive or required for safety is not deductible (plain business casual or ordinary trousers).

Vehicle — Site Travel Deductions

Travel between separate work sites on the same day is deductible:

Travel typeDeductible?
Office to construction siteYes
Between multiple sites in a dayYes
From a site directly to home (last appointment)May be deductible in some circumstances
Home to office (first trip of day)No — ordinary commute

Use the logbook method for high work-use vehicles (complete a 12-week logbook), or cents per km (88c/km, up to 5,000 km) for occasional site travel.

Tools, Equipment, and Software

  • Engineering-specific software at the personal/contractor level: AutoCAD, Revit, Tekla, STAAD.Pro — deductible at work-use proportion
  • Calculator (scientific or engineering) — deductible if purchased for work; under $300, claim in full
  • Laptop/tablet used for engineering work — depreciate at work-use proportion
  • Level, measuring tape, laser distance meter (personally purchased for site use) — deductible

Home Office

Engineers who work from home (design, modelling, report writing, CPD):

  • Fixed rate method: 67c/hour for each work-from-home hour
  • Keep a diary or log throughout the year
  • Laptop and software depreciation claimed separately

Professional Indemnity Insurance (Contractors)

Engineering contractors and consultants working independently:

  • Professional indemnity insurance premium — fully deductible
  • Public liability insurance — deductible

What Engineers Cannot Claim

  • Ordinary commute from home to office
  • General fitness costs
  • Initial engineering degree or cadetship costs
  • Equipment provided by employer

Frequently Asked Questions

Can I claim my home internet for engineering work? Yes — at the work proportion. The WFH fixed rate (67c/hour) covers internet at home. If you claim actual costs separately, use a 4-week diary to establish the work proportion.

I am a software engineer. Are my technical subscriptions deductible? Yes — platform subscriptions (GitHub, cloud computing tools, technical courses on Udemy or similar) are deductible at the work proportion, where they are directly related to your current role rather than general upskilling for a future career change.

Can I claim the cost of attending Engineers Australia state conference? Yes — if it includes legitimate CPD and is directly relevant to your current engineering practice.


This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.