Real estate agent tax return checklist for 2026

Real estate returns tend to lean the same way. Agents pour real money into the car and the marketing that wins the next listing, then under-claim both because a year of it is impossible to reconstruct in July. At the same time they load the return with the glamorous stuff the ATO flatly rejects for the role, and that is what draws a second look. This checklist is a straight run before you lodge: what an employed agent can claim, what to leave off, and the records that decide whether a claim stands. The test behind every line is constant — you paid for it yourself, it was for earning your income, no one reimbursed you, and you can prove it.

First, are you commission-entitled or fixed-salary?

Settle this before anything else, because it decides whether a whole tier of agent deductions is even open to you. Self-funded advertising and client gifts are claimable only if you earn commission, or commission plus a retainer.

Commission-entitled.Most residential sales reps clear this gate comfortably.

Fixed-salary, no commission.A salaried property manager or admin often does not, and cannot claim self-funded advertising or client gifts at all.

Know which side you sit on before you go near the marketing and gifts — see the marketing, gifts and commission chapter for exactly what the gate covers.

The car

The car is your biggest deduction and the biggest reason a real estate return gets audited, so get it right rather than optimistic.

Two methods, one car.Cents per kilometre uses a set rate the ATO resets each year, capped at 5,000 work kilometres, and you show how you worked the total out. A logbook runs twelve continuous weeks to set your work-use percentage across every running cost, and for a high-kilometre agent it usually beats the cap by a wide margin. Pick one per car — you cannot also claim fuel and servicing separately on top.

Trips between appointments count, the commute doesn't.Office to an open home, out to an inspection or an auction, or straight from home to a property you are showing instead of the office first, all deductible. Your ordinary run from home to your regular office and back is private, even on a Saturday and even for a weekend auction.

See the car and travel chapter for both methods and where the line sits.

The marketing and gifts you funded yourself

These are the claims agents most often leave on the table, and they belong to commission earners only.

Self-funded marketing.Listing upgrades on realestate.com.au and Domain, signboards and bunting, letterbox drops, professional photography and drone footage, flyers, business cards and personal branding, where you paid and were not reimbursed. You cannot claim what the agency reimbursed or the vendor paid for, and a website that builds an enduring asset may be capital, depreciated rather than claimed outright.

Client gifts, not entertainment.A settlement hamper, a bottle of wine or whisky, flowers, a gift voucher or a pen set that the client takes away is a deductible gift. The moment it is consumed on the spot or becomes an experience — a lunch, event tickets, a round of golf — it is entertainment and it is never deductible, even if you talked shop the whole time.

Handing over a sealed bottle works; taking the client to lunch does not.

Licences, fees, study and the running costs

These apply whether or not you earn commission, and several sit on quiet direct debits that are easy to forget.

Licence and certificate renewal.Renewing your certificate of registration or licence while you are employed is deductible. The initial certificate that got you into the job is not, and neither is the police check.

Institute and association fees.REIA and your state institute (REIV, REINSW, REIWA and the rest), plus union or association membership.

Self-education for your current role.An auctioneering course, negotiation or marketing CPD, anything that maintains or improves the skills your current job uses, along with the textbooks and course fees. Study to get into real estate or change careers is out.

The work share of your phone.Based on a representative few weeks of actual use, not a round guess. Under $50 total and incidental needs no records; above that you itemise.

Subscriptions.CoreLogic or RP Data and the industry journals tied to your duties. General newspapers only for the genuinely work-specific content.

Home-office running costs.The electricity, heating and cooling, and the decline in value of equipment when you prep listings or do admin from home, by the fixed-rate or actual method. Running costs only.

The myths to leave off

These feel like the cost of doing the job, but the ATO does not allow them for the role, and putting them on a return is how an agent invites scrutiny:

The corporate wardrobe. Business shirts, dresses, corporate shoes, the lot. Conventional clothing is private even when your agency requires it and you only wear it to work.
Haircuts, makeup and grooming. Non-deductible flat out, even if you receive a grooming allowance or your principal expects you polished for opens.
Client lunches, coffees and event tickets. Entertainment, never deductible, no matter how much business gets done over the table. Relabelling a meal as a gift does not save it.
The home-to-office commute. Private, whatever the hour and however far you live from the office.
The initial licence and the police check. The costs of getting into the job, not of doing it.
Prescription glasses and contacts. Private, even worn all day at the desk.
Rent, mortgage interest and other occupancy costs. An employee cannot claim occupancy, only the running costs above. The occupancy claim is a business concession for an ABN, not for you.

The records that decide a real estate claim

Every line above is only as good as the evidence behind it. The rule is plain: keep written evidence for each claim, and once your total work-related claims pass $300 you need it for all of them, not just the amount over the line. The trouble is never the big items. It is the drip of small marketing spends and the kilometres between opens across twelve months that no one keeps a shoebox for.

Your car log or kilometre diary, behind whichever method you use.
Receipts for marketing spend and gifts, plus proof you funded them and weren't reimbursed by the agency or vendor.
Licence renewal notices and institute fee statements, which run on direct debit and are easy to miss.
A note of your phone's work-use share, worked out from a representative period.

The ATO's own myDeductions app will log the basics at no cost.

The bottom line

One honest pass through this list gets you the two claims agents keep missing — the driving between opens and the marketing you fund yourself — and keeps you off the three that get returns flagged: the wardrobe, the haircut, and the client lunch dressed up as a gift. Sort the commission gate first, keep the car log and the receipts as you go, and claim what you paid for and can prove. You spend real money chasing the next listing. This makes sure the return reflects it.

Add up your deductions

See what your car, self-funded marketing, gifts and fees come to at tax time.

Deductions calculator →

General information only, not tax advice. Check the ATO or a registered tax agent for your situation.