6 Things Lawyers Can and Cannot Claim at Tax Time
Posted on Jun 3, 2026
If you earned income as a lawyer during the financial year, you are eligible to claim specific work-related expenses when lodging your tax return. You may already know some of the deductions you are entitled to, but are you aware of everything you can claim? For example, did you know that annual Supreme Court library fees are claimable?
We have listed six things you may not know you can, or cannot, claim on your 2025-26 tax return.
1. You cannot claim your Chanel bag or Armani suit, but you can claim a briefcase and court attire
General business clothing is not tax deductible for lawyers, but occupation-specific items such as court robes and wigs are, as are bags purchased specifically to carry work equipment.
You can claim the cost of a briefcase or large bag if it was purchased for work purposes and used to carry items such as your work laptop and work-related paperwork. General business attire, however stylish or expensive, is not claimable.
Court attire such as robes and wigs are deductible because they are considered occupation-specific and compulsory to wear in many jurisdictions. In addition to purchasing these items, you can also claim cleaning, hire, repair and replacement costs for these garments.
2. You can claim your annual practising certificate
Lawyers can claim a deduction for the cost of renewing their annual practising certificate. Considering renewal fees exceed $1,000 in many jurisdictions, this is a cost well worth claiming.
You should have recently renewed your practising certificate, or may have recently been admitted to practice. Although admission fees are not claimable, the annual renewal cost is. Keep your renewal notice or invoice as evidence of payment.
3. You cannot claim your golf membership, even if you only went to network
Club membership fees, entertainment costs such as business lunches, and attendance at sporting or social events cannot be claimed by lawyers, regardless of whether attendance was business-related or employer-directed.
Under ATO rules, club membership or sponsorship fees cannot be claimed even if the main purpose of the membership is business development. Similarly, you cannot claim the cost of entertainment, such as business lunches and attendance at sporting events, gala nights, or social functions. These are considered private expenses and are not deductible.
4. You can claim a percentage of your ChatGPT subscription
Lawyers who pay for AI tool subscriptions such as ChatGPT out of their own pocket can claim a proportion of the cost as a deduction, based on the percentage of time the tool is used for work.
If you use a paid subscription to ChatGPT or other AI tools in your work, you may be able to claim these expenses as a deduction on your tax return. To be eligible, you must have paid for the subscription yourself and not been reimbursed, and you must have a receipt proving payment.
The deductible amount is calculated based on how much time you spend using the tool for work versus personal use. Depending on how many AI tools you use professionally, this could amount to over $1,000 in deductions per year.
5. Is CPD tax deductible?
Yes. Expenses associated with completing CPD requirements are tax deductible for lawyers, including registration fees for seminars and conferences, online course fees, and fares to attend in-person training.
If you attended legal CPD seminars and conferences, or completed online training to meet your mandatory CPD requirements, you can claim the associated fees. Examples of claimable costs include fares to attend the venue where the seminar, conference, or training course is held, and registration or course fees.
LawCPD's interactive online courses fall under the training courses deduction category. This means all of LawCPD's recognised CPD courses are tax deductible and can be claimed at tax time. If you have completed online courses with LawCPD, you can find your invoices by logging in to your account.
Remember to keep records, in either paper or digital form, of all costs you wish to claim in your annual tax return. In most cases, you need to keep these records for five years from the date you lodge your tax return. You can only claim work-related expenses if you have the documents to prove the claim.
Earn CPD points while you learn. LawCPD offers recognised interactive CPD courses in practice management, ethics, and substantive law, available anywhere, anytime.
Browse all CPD courses with LawCPD6. You cannot claim your Netflix subscription, but you can claim working-from-home expenses
Lawyers who worked from home during the financial year can claim working-from-home expenses using either the ATO's revised fixed rate method (70 cents per hour for 2025-26) or the actual cost method, but streaming or personal subscriptions are not deductible.
If you worked from home during the financial year, you can use either the revised fixed rate method or the actual cost method to calculate your working-from-home expenses.
The fixed rate for 2025-26 is 70 cents per hour, covering electricity and gas, computer consumables, stationery, and data and internet costs. You must keep a record of the hours you worked from home across the full year, not just a sample period.
For more information, visit the ATO working-from-home expenses page.
Frequently asked questions
Can lawyers claim CPD course fees as a tax deduction in Australia?
Yes. CPD course fees are deductible for Australian lawyers because completing CPD points is a professional requirement directly connected to maintaining their right to practise. This includes online courses, seminars, conference registrations, and related travel costs, provided the activity relates to the lawyer's current area of practice.
Are practising certificate fees tax deductible for lawyers?
Yes. The annual renewal cost of a practising certificate is fully tax deductible as it is a mandatory cost of earning income as a lawyer in Australia. Note that initial admission fees are not deductible, only the ongoing annual renewal.
Can lawyers claim robes and wigs on tax?
Yes. Court attire such as robes and wigs are deductible for lawyers because they are occupation-specific clothing that is compulsory in many jurisdictions. You can also claim cleaning, hire, repair, and replacement costs for these items. General business clothing such as suits or formal wear is not deductible.
Can lawyers claim AI tool subscriptions such as ChatGPT on tax?
Yes, in part. Lawyers who pay for AI tool subscriptions out of their own pocket can claim the work-related proportion of the cost. You must have a receipt proving payment and must not have been reimbursed by your employer. The deductible amount is based on the percentage of time the tool is used for work versus personal use.
What is the working-from-home rate for lawyers in 2025-26?
The ATO's revised fixed rate for working-from-home deductions in the 2025-26 income year is 70 cents per hour. This covers electricity and gas, computer consumables, stationery, and internet costs. You must keep a record of hours worked from home across the full financial year.
Can lawyers claim business lunches or entertainment on tax?
No. Business lunches, attendance at sporting events, gala nights, and other entertainment costs are not tax deductible for lawyers. Under ATO rules these are considered private expenses regardless of whether they had a business development purpose or attendance was directed by an employer.
Please note this article is general advice only based on the ATO deduction guide and ATO lawyer deductions guide. Tax rules change regularly. Always consult a registered tax agent or accountant for advice specific to your circumstances. Dollar thresholds and ATO guidance are current as of the 2025-26 financial year.
Editor's note: This article was originally published in June 2019, updated in May 2024, and has been updated in June 2026 for accuracy and comprehensiveness.
If you’ve earnt income as a lawyer during the financial year, you are eligible to claim specific work-related expenses when lodging your tax return. You are probably aware of some deductions you are entitled to as a lawyer, but are you aware of everything you can claim? For example, did you know that annual Supreme Court library fees are claimable?
We have listed some other things you may not know you can - or can’t - claim for your tax return.
Please note this article is general advice only based on the ATO deduction guide and ATO lawyer deductions.
1. Unfortunately, you can’t claim your Chanel bag or Armani Suit
However, you can claim the cost of a briefcase (or large handbag) if it was purchased for work purposes and used to carry items such as your work laptop and work-related paperwork.
Likewise, although general business attire is not claimable, court attire such as robes and wigs are. This is because they are considered to be occupation-specific and compulsory to wear in many jurisdictions. In addition to these purchases, you can also claim cleaning, hire, repair and replacement costs for these garments.
2. You can claim your annual practising certificate
You should have recently renewed your practising certificate, or might even have recently been admitted to practice (congratulations!). Although admission fees are not claimable, you can claim a deduction for the cost of renewing your annual practising certificate. Considering the costs of renewal exceed $1,000 in many jurisdictions, this is a cost well worth claiming.
3. You can’t claim your golf membership, even if you only reached the green to network
Under the ATO rules, club membership or sponsorship fees cannot be claimed, even if the main purpose of the membership is business development. Similarly, you cannot claim the cost of entertainment, such as business lunches and attendance at sporting events, gala or social nights. Whether your attendance was made compulsory by your employer or not, these events are considered private and thus not claimable.
4. You can claim a percentage of your ChatGPT subscription
If you use a paid subscription to ChatGPT or other AI tools for your work - you may be able to claim these expenses as a deduction on your tax return. So long as you have paid for the subscription yourself (and have not been reimbursed) and have a receipt proving you've paid, you can claim a proportion of the costs based on how much time you spend on this tool for work. Depending on how many AI tools you use in your work, this could potentially exceed $1,000 in deductions each year.
5. Is CPD tax deductible?
Yes, some expenses associated with your CPD training are tax deductible. For example, if you attended legal CPD seminars and conferences or completed online training to meet your mandatory requirements, you can claim the associated fees. Examples of related fees include fares to attend the venue where the seminar, conference, or training course is held or registration costs.
Remember to keep records - in either paper or digital form - of all costs you wish to claim in your annual tax return. In most cases, you need to keep these records for 5 years from the date you lodge your tax return. You can only claim work-related expenses if you have the documents to prove your claim.
LawCPD's interactive online courses fall under the training courses deduction category. This means all our legal CPD courses are tax deductible and can be claimable at tax time. If you have completed online courses with LawCPD, you can find your invoices by logging in to your account.
Please note that this is general advice only. For detailed information, visit the ATO deduction guide.
Other resources you might like:
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- [Insight] Legal Industry 2024 Report - 5 Key Issues for 2024
- [CPD Course] The Balance Sheet Barrier
6. You can’t claim your Netflix subscription, but you can claim working-from-home expenses
If you worked from home during the financial year, you can either use the revised fixed rate method or the actual cost method to calculate your working-from-home expenses.
Expenses claimable using either method include electricity and gas, computer consumables, stationery, and data and internet. It is essential you keep comprehensive records for both methods to claim your expenses.
For more information on claiming working-from-home expenses, visit the ATO working-from-home expenses page.
Editor's note: This article was originally published in June 2019 and has been updated in May 2024 for accuracy and comprehensiveness.
