Tax Deductions for Real Estate Agents in Australia

Real estate agents in Australia spend heavily on vehicles, phones, marketing, and professional development – but many don’t claim everything they’re entitled to. Whether you’re a salaried agent, a commission-only salesperson, or running your own agency, understanding the full range of tax deductions for real estate agents in Australia can make a significant difference to your bottom line. This guide covers every major category.

Disclaimer: This article provides general information only and does not constitute tax advice. Consult a registered tax agent for advice specific to your circumstances.

Common Tax Deductions for Real Estate Agents

Real estate is a high-expense profession. Between driving to inspections, marketing listings, and maintaining a professional presence, costs add up quickly. Here are the key deductions you should be claiming.

Phone and Internet

Real estate agents are on the phone constantly – calling vendors, fielding buyer enquiries, coordinating with conveyancers, and messaging colleagues. You can claim the work-related percentage of your phone and internet costs:

• Mobile phone – for most agents, work use is 60–90%. Keep a diary for a representative four-week period to establish your percentage. An agent paying $80/month with 80% work use can claim $768 per year.
• Internet – if you work from home preparing listings, managing CRM systems, or responding to emails. Claim the work-related portion.
• Tablet or iPad data plan – if you use a tablet for property presentations or digital contracts.

Marketing and Advertising

Marketing costs are a significant expense for agents, and they’re fully deductible if you pay for them yourself (rather than the vendor or agency covering them):

• Online advertising – paid ads on realestate.com.au, Domain, Facebook, Instagram, Google Ads
• Signage – for sale boards, open inspection signs, pull-up banners
• Photography and videography – professional property photography, drone footage, virtual tours
• Business cards and stationery – printing costs for cards, letterheads, envelopes
• Direct mail – letterbox drops, “just listed” and “just sold” flyers
• Personal branding – costs for maintaining your professional brand (website, logo design, social media content creation)

An agent spending $200/month on social media ads, $500/year on business cards and print materials, and $150/month on their personal website is looking at over $4,300 per year in marketing deductions.

Clothing

Clothing deductions are one of the most misunderstood areas for real estate agents. The ATO is strict about what qualifies:

• Branded uniforms – clothing with your agency’s logo that is not suitable for everyday wear is deductible. A polo shirt with your agency name embroidered on it qualifies.
• Occupation-specific clothing – items that are distinctly associated with your job and not conventional wear.
• What you can’t claim – plain suits, business shirts, dresses, or shoes, even if you only wear them for work. The ATO does not consider conventional business attire to be a deduction, regardless of cost.

If your agency requires you to wear branded clothing, claim the purchase cost and the laundry costs. Laundry claims under $150 don’t require written evidence.

Client-Related Expenses

Some client-related costs are deductible, but the rules are nuanced:

• Meals during property inspections or client meetings – where the meal is directly related to earning income and is modest, a portion may be deductible. Note that entertainment expenses are generally not deductible unless they fall under specific exceptions.
• Gifts to clients – small gifts (e.g., a bottle of wine at settlement) may be deductible as a business expense if they are modest and directly related to earning income. Keep receipts and note the client and purpose.
• Client entertainment – the rules around entertainment expenses are complex. Broadly, entertainment is not deductible unless you’re providing it in the course of your business and it falls under the fringe benefits tax regime. Speak to your tax agent about what applies to your situation.

Insurance and Professional Fees

• Professional indemnity insurance – required by most states for licensed agents
• Public liability insurance – if you’re self-employed or running your own agency
• Licence renewal fees – state-based real estate licence fees are deductible
• Professional memberships – Real Estate Institute fees (REIV, REINSW, REIWA, REI in your state) are fully deductible
• Union or professional association fees – if you belong to a relevant body

Home Office Deductions

Many real estate agents do admin work, prepare contracts, and follow up leads from home. The ATO allows two methods:

Fixed Rate Method (67 cents per hour)

• Claim 67 cents for every hour you work from home
• Covers electricity, internet, phone, stationery, and computer consumables
• You still claim equipment depreciation separately
• Keep a record of your hours (diary, calendar, or timesheet)

An agent working from home 15 hours per week for 48 weeks would claim $482.40 per year under this method.

Actual Cost Method

• Calculate the actual costs attributable to your home workspace
• Requires detailed records of bills and a dedicated workspace
• Can result in a higher deduction if your costs are significant

For a deeper look, check out our home office deduction calculator guide.

Vehicle and Travel Expenses

Vehicle expenses are often the single largest deduction for real estate agents. Between open inspections, vendor meetings, property appraisals, and settlement appointments, agents can easily drive 20,000–30,000 business kilometres per year.

The ATO offers two methods:

Cents per Kilometre Method

• 85 cents per business kilometre (2023-24 rate)
• Capped at 5,000 km per year
• Maximum claim of $4,250
• Too low for most agents who drive extensively

Logbook Method

• Keep a logbook for a minimum of 12 consecutive weeks
• Calculate your business-use percentage
• Claim that percentage of all running costs: fuel, registration, insurance, servicing, repairs, tyres, loan interest, and depreciation

For high-kilometre agents, the logbook method is essential. An agent with a $50,000 car, 25,000 km per year, and a 70% business-use percentage could be looking at $8,000–$12,000 or more in annual vehicle deductions – far beyond the $4,250 cap of the cents per kilometre method.

Tip: A logbook is valid for five years as long as your circumstances don’t change significantly. Set one up during a representative period, and you’re covered.

Other travel expenses include:

• Parking – at open inspections, client meetings, and agency events
• Tolls – if you use toll roads regularly for work
• Public transport and ride fares – for work-related travel

Equipment and Tools

Real estate agents rely on technology to manage listings, communicate with clients, and close deals:

• Laptop or tablet – for CRM systems, listing management, digital contracts. Items over $300 are depreciated; items $300 or less are claimed immediately.
• Printer and scanner – for contracts, brochures, and property documentation
• Camera – if you take your own property photos (depreciated over effective life)
• Measuring tools – laser measurers, tape measures for property appraisals
• Open inspection equipment – sign holders, iPad stands, brochure holders
• CRM and property management software – subscriptions to platforms like Rex, AgentBox, or VaultRE

Record-Keeping Tips for Real Estate Agents

The ATO requires records to be kept for five years. For agents with high volumes of receipts – fuel, parking, marketing, client expenses – staying on top of records is critical.

• Scan receipts on the spot – after every fuel stop, parking payment, or supply purchase, scan the receipt immediately. Paper receipts from thermal printers fade within months.
• Maintain a vehicle logbook – start one during a representative 12-week period and keep it for five years.
• Keep a phone-use diary – record your work and personal phone use for four representative weeks.
• Store marketing invoices – keep copies of all advertising, signage, and printing invoices.
• Note the purpose of client expenses – for any meal or gift, record the client name, purpose, and business context.

For more general tips on maximising deductions, check out our guide on 5 tax deduction tips every freelancer should know.

Track Real Estate Agent Deductions with Taxr

Real estate agents are always on the move, which makes it easy for receipts to pile up, fade, or disappear. Taxr is built for professionals on the go – scan each receipt with your phone the moment you get it, let the AI extract the details and auto-categorise the expense, and export everything for your tax agent at EOFY. No shoeboxes, no spreadsheets, no missed deductions. Download Taxr and start claiming everything you’re entitled to.