Nurses Are Among Australia’s Most Overworked — and Undertaxed — Professionals

If you’re a registered nurse, enrolled nurse, midwife, or nursing student in Australia, there’s a good chance you’re leaving money on the table every time you lodge your tax return. Nurses are on the front line of Australia’s healthcare system — working long shifts, buying their own equipment, paying out of pocket for registration fees and continuing education, and travelling between hospitals or clinics. Many of those costs are deductible. Most nurses don’t claim all of them.

This guide walks through every major nurse tax deduction available under Australian law for the 2025-26 financial year. I’m Mina Baselyous — CPA and Chartered Tax Adviser at Pinnacle Accounting & Advisory in Melbourne — and I’ve helped many healthcare professionals maximise their refunds by understanding exactly what the ATO allows and what it doesn’t.

Whether you work in a public hospital, a private clinic, an aged care facility, or through a nursing agency, this guide has you covered.

What Counts as a Tax Deduction?

Before diving into the specifics, it helps to understand the ATO’s three golden rules for deductions. An expense is deductible if:

• You incurred it in earning your income — there’s a direct connection between the expense and your work as a nurse.
• It’s not private or domestic — personal expenses (groceries, gym, haircuts) don’t count, even if they indirectly help you perform your job.
• You haven’t been reimbursed — if your employer paid for it, you can’t also claim it as a deduction.

You must also keep adequate records — generally receipts or bank statements — for any claim over $300, and you need a record of all claims regardless of amount.

For full ATO guidance, see the ATO’s deductions page.

Uniforms and Protective Clothing

This is one of the most commonly misunderstood deductions for nurses. You can claim:

• Compulsory uniforms — scrubs or nursing attire that are specific to your employer (e.g., have a logo, required colour scheme, or are stipulated in your employment agreement). If your employer says “wear these blue scrubs with our logo,” that’s deductible.
• Protective footwear — non-slip nursing shoes or steel-capped boots required for your ward or operating environment.
• Compression stockings — if they’re medically required for your role (e.g., long shifts in surgical units), these may be claimable as protective clothing.
• Laundry costs — $1 per load for work-related clothing (up to $150 without receipts). If you’re washing scrubs separately from personal clothing, track the loads. Over $150, you’ll need receipts.

You cannot claim plain clothing you choose to wear to work — even if it’s all black and you only wear it for nursing shifts. If it’s not specific to your employer and could be worn on the street, the ATO says no.

AHPRA Registration and Professional Memberships

Registered nurses in Australia must maintain their registration with the Australian Health Practitioner Regulation Agency (AHPRA). The annual AHPRA registration renewal fee is 100% tax deductible because it’s a direct requirement for you to practise as a nurse.

Other deductible memberships and registrations include:

• Australian Nursing and Midwifery Federation (ANMF) union fees — fully deductible as a work-related expense
• Australian College of Nursing (ACN) membership fees
• Specialty college fees — such as ACORN (perioperative nurses), ACEM (emergency), ACCCN (critical care), or any other specialty professional body you belong to
• Professional indemnity insurance — if you pay this personally (rather than through your employer), it is fully deductible

Keep the annual renewal notices and membership invoices — they’re straightforward to claim and add up quickly.

Professional Development and Self-Education

Nurses are required to complete Continuing Professional Development (CPD) each year to maintain AHPRA registration. That requirement creates a direct link to deductibility. You can claim:

• CPD course fees and registration costs
• Conferences and seminars — including travel and accommodation to attend (see car travel section)
• Textbooks and study materials directly related to your current nursing work
• Journal subscriptions — nursing or medical journals relevant to your specialty
• Internet usage for study — the work-related proportion of your home internet connection

One important distinction: self-education expenses are deductible only if the study is connected to your current job, not if you’re studying to enter a completely new career. For example:

• A registered nurse studying for a Graduate Certificate in Intensive Care Nursing — deductible (directly connected to current nursing work)
• A hospital cleaner studying to become a nurse — not deductible (qualifying for new employment)
• An enrolled nurse studying to become a registered nurse — this is a grey area, and we’d recommend getting specific advice from a registered tax agent like Pinnacle before claiming

If you’re unsure whether your course qualifies, reach out to our team for tailored advice before lodgement.

Work-Related Car Travel

Car travel is one of the larger deductions available to nurses — but there are strict rules about what qualifies. The ATO is very clear: your regular commute from home to your usual place of work is not deductible.

What you can claim:

• Travel between two workplaces on the same day — e.g., leaving your main hospital and driving to a clinic or aged care facility for an agency shift
• Travel to CPD training or conferences where the venue is not your regular workplace
• Travel for community or home visits — district nurses and community health nurses who travel between patient homes during a shift can claim this travel
• Travel to pick up or deliver equipment or supplies for your employer

There are two methods for calculating car deductions:

• Cents per kilometre: 88 cents per km for 2024-25; 92 cents per km for 2025-26. You can claim up to 5,000 km per year without a logbook. Keep a diary or app record showing each journey, purpose, and distance.
• Logbook method: If your work-related driving exceeds 5,000 km per year, a logbook can give a higher deduction. Maintain the logbook for at least 12 continuous weeks to establish your business-use percentage.

Agency nurses who work across multiple hospitals in a week often have substantial car deduction entitlements — it’s worth tracking carefully.

Tools and Equipment

Any tools or equipment you purchase for work that your employer does not provide are deductible. Common examples for nurses include:

• Stethoscope
• Blood pressure cuff
• Nursing watch (fob watch)
• Medical scissors and forceps
• Penlight torch
• Pulse oximeter
• Drug reference guides or apps (paid subscriptions)

The rule is straightforward:

• Items costing $300 or less can be fully deducted in the year of purchase
• Items costing over $300 must be depreciated over their effective life (e.g., a high-end stethoscope costing $500 would be claimed over several years)

If you use the item partly for work and partly personally, you can only claim the work-related portion. Keep the receipt and note the percentage of work use.

Phone and Internet

Most nurses use their personal phone for work — checking rosters, communicating with ward staff, accessing medication reference apps, or reviewing patient handover notes. The work-related portion of your phone and internet bill is deductible.

The ATO recommends keeping a usage diary for four consecutive weeks to establish the percentage of work versus personal use. That percentage then applies to your annual bill.

For most nurses, the work-related proportion sits somewhere between 25% and 50%, depending on your role. A nurse coordinator or team leader who uses their phone heavily for rostering and communication may have a higher percentage than a bedside nurse with limited phone use during shifts.

Home Office Expenses

For many nurses, this deduction won’t apply — you can’t claim a home office deduction just because you look at your roster or occasionally send a work email from home.

However, if you genuinely work from home — for example, you do documentation, clinical charting, or education in a dedicated home workspace — you can claim a deduction using the fixed rate method: 70 cents per hour for every hour you work from home. This covers electricity, internet, and stationery used while working from home.

To claim this, you must:

• Keep a record of the actual hours you work from home (a diary or calendar entries)
• Have a genuine work-from-home arrangement — not just occasional tasks

Nurse educators, clinical nurse consultants, and nurses who complete significant documentation at home are the most likely to qualify.

Union Fees and Professional Subscriptions

Union fees are one of the most straightforward nurse tax deductions. If you’re a member of the Australian Nursing and Midwifery Federation (ANMF) or any other union, those fees are fully tax deductible.

Professional subscriptions that are relevant to your nursing work are also deductible — including:

• Medical and nursing journal subscriptions
• Clinical app subscriptions (e.g., AMH, MIMS, Epocrates) used for patient care
• Online CPD platform subscriptions

If you’re not sure whether a subscription qualifies, the key question is: “Do I need this to do my job?” If the answer is yes, it’s likely deductible.

What Nurses Cannot Claim

Just as important as knowing what to claim is knowing what not to claim. The ATO audits healthcare workers regularly, and incorrect deductions attract penalties.

Nurses cannot claim:

• Ordinary clothing — even if you only wear it for nursing shifts. Scrubs without a logo that could be worn outside work are not deductible.
• Grooming and personal care — haircuts, skincare products, manicures, or perfume, even if you present professionally at work.
• Home-to-work travel — your commute is a private expense regardless of how far you live from the hospital.
• Meals and snacks — food eaten during your shift is not deductible unless you’re on an overnight trip away from your regular workplace.
• Gym memberships or fitness costs — even if fitness is important for the physical demands of nursing.
• Personal use portion of phone or internet — only the work-related percentage is deductible.
• Parking at your usual workplace — parking fees paid at your regular hospital are not deductible (unlike parking at a second workplace or for CPD travel).

Record-Keeping Tips for Nurses

Good record-keeping is the difference between a confident tax claim and a stressful ATO audit. Here’s what I recommend to every healthcare professional I work with:

• Download the ATO myDeductions app — it’s free and lets you photograph receipts, record car trips, and track deductions throughout the year instead of scrambling at tax time.
• Keep all receipts for items over $300 and anything you plan to claim. Even for items under $300, having a receipt makes your claim bulletproof.
• Keep a car logbook or travel diary — record each work-related journey with date, start and end destination, purpose, and distance.
• Run a four-week phone usage diary at some point during the year — this establishes your work-use percentage for the full year.
• Save your AHPRA renewal invoice and all membership receipts — these are easy to forget but add up to several hundred dollars a year.
• Note any work clothing purchases at the time of purchase — don’t rely on memory months later.

The ATO requires you to keep records for five years from the date you lodge your tax return. Digital storage (photos or PDF scans) is acceptable.

The Bottom Line: Get Every Dollar You’re Entitled To

Nurses dedicate their careers to caring for others. The last thing you should have to worry about is whether you’re maximising your tax return. With AHPRA fees, CPD requirements, professional memberships, equipment costs, and work-related travel, a well-prepared nurse tax return can include thousands of dollars in legitimate deductions.

The challenge is that the ATO’s rules are specific — and getting them wrong in either direction (claiming too little or claiming incorrectly) costs you money. Working with a registered tax agent who understands the healthcare sector means your return is lodged correctly, compliantly, and with every deduction you’re entitled to.

At Pinnacle Accounting & Advisory, we work with nurses, midwives, and allied health professionals across Melbourne and Australia-wide. Our tax planning service is designed to help you keep more of what you earn — not just at tax time, but throughout the year.

Ready to get started? Book a Consultation with our team and let’s make sure your next tax return is the best one yet.

Frequently Asked Questions — Nurse Tax Deductions Australia

Can I claim my AHPRA registration fee?

Yes — the annual AHPRA registration renewal fee is 100% tax deductible for registered nurses and midwives. It’s a mandatory requirement to practise, which makes the connection to earning income direct and clear. Keep your renewal invoice as your receipt.

Are nursing scrubs tax deductible?

Only if they are a compulsory uniform specific to your employer — for example, scrubs with your hospital’s logo, or a specific colour mandated by your workplace policy. Generic scrubs without identifying features that could be worn outside work are generally not deductible. If in doubt, check your employment agreement or ask your manager for written confirmation that the uniform is compulsory.

Can I claim my nursing degree as a tax deduction?

It depends on your current employment. If you are already working as a nurse and studying a postgraduate qualification directly connected to your current role (e.g., Graduate Certificate in Critical Care Nursing), the course fees are likely deductible. However, if you’re studying to become a nurse for the first time, those costs are not deductible because you’re qualifying for new employment rather than improving your current skills. The ATO is clear on this distinction — always check before claiming.

How much can I claim without receipts?

You can claim up to $300 in total work-related expenses without receipts (except for car expenses, which have their own rules). For laundry of work uniforms specifically, you can claim up to $150 without receipts using the ATO’s rate of $1 per load. For any amount over these thresholds, receipts or bank statements are required.

Can agency nurses claim travel to different hospitals?

Yes — this is one of the strongest deductions available to agency nurses. Travel between two workplaces on the same day is deductible. If you leave your regular base or home between shifts and travel to a different hospital for an agency placement, that travel is claimable. The key is that you’re travelling between places of work, not commuting from home to a single regular workplace. Agency nurses who work across multiple sites should keep a detailed travel diary throughout the year.

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General Advice Warning: The information on this page is general in nature and does not constitute personal financial, tax or legal advice. Tax laws change regularly and your individual circumstances will affect what deductions you can claim. Always seek tailored professional advice from a registered tax agent before acting on anything you read here.

Frequently Asked Questions

This article contains general advice only and does not take into account your specific circumstances. Please speak with a qualified accountant or tax adviser before making financial decisions.

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