How Tax Deductions Work for Sales Representatives
Sales representatives may personally pay for travel between clients, mobile phone use, computers, sales software, product samples, professional training and other expenses connected to earning their income.
The deductions available can differ depending on whether you earn a fixed salary, receive sales commissions, work as a contractor or operate your own sales business.
To claim an expense, you generally need to have paid for it yourself without reimbursement, it must directly relate to earning your income, and you must keep suitable records. This 2026 guide explains the main tax deductions sales representatives may be able to claim in Australia.
Sales Representatives in Australia: Employment Overview
- Average weekly pay: $1,200
- Employment size: 126,300
- Future growth: Stable
- Skill level: Certificate II or III
Typical tax deductions include:
- Motor vehicle travel to and from work if having either shifting workplaces (working at more than one site each day before returning home), or transporting bulky equipment when visiting clients, i.e. client samples and demonstration equipment.
- Motor vehicle travel between offices, visiting clients or for training purposes.
- Phone and internet – work %.
- Client gifts bought for work purposes by salespersons who are entitled to receive commission income – includes a Christmas hamper, a bottle of whisky, wine, gift vouchers, flowers, etc.
- Home office occupancy expenses if required by the employer to work from home – includes a % of rent, mortgage interest, rates, insurance, etc.
- Computers, tools and equipment.
- Referral commission and expenses.
- Handbag, briefcase or satchel.
- Overnight travel expenses visiting clients, or for training/conferences – includes airfares, accommodation and meals.
- Home office running expenses.
- Compulsory work uniform branded with the employers logo.
- Union fees, licences, registrations and subscriptions.
- Work-related training courses – includes first aid, OH&S, bookkeeping, sales techniques, customer service, merchandising, computer skills or management.
- Overseas conferences, courses and study tours.
- Self-education expenses – includes course fees, books, stationery, equipment and travel.
Professional memberships.
Non-deductible expenses:
- Advertising – if earning income from a fixed salary and not entitled to earn commission.
- Gifts – if earning a fixed income and not entitled to earn commission.
- Entertainment expenses including buying lunch for a client or business associate.
- Expenses incurred in attending social functions e.g. monthly sales representative networking breakfasts.
Tax Strategies we can assist you with.
- Self-education expenses
- Overseas conferences, courses and study tours
- Computers, tools, equipment and other assets
- Compulsory work uniform
- Logbook for motor vehicles
- Gifts to clients, suppliers and contractors
- Union fees, licences, registrations and subscriptions
- Phone and internet
- Home office running expenses
- Overnight travel expenses
Click here to see Tax Calculator for Sales Representatives.
Sales Representative Tax Deduction FAQs
Q1: What can sales representatives claim on tax in 2026?
Sales representatives may be able to claim eligible client travel, phone use, sales software, work equipment, professional training, memberships and certain expenses directly connected to earning commission income.
Q2: Can sales representatives claim car expenses?
Travel between customers, offices and separate workplaces may be deductible when undertaken while performing sales duties. Ordinary travel between home and a regular workplace is generally private.
Q3: Can sales representatives claim client gifts?
Client gifts may be deductible in limited circumstances where the salesperson earns commission income and the gift directly relates to generating that income. Gifts should not be treated as automatically deductible.
Q4: Can sales representatives claim client lunches?
Client lunches, drinks and other entertainment expenses are generally not deductible merely because business is discussed.
Q5: Can sales representatives claim advertising costs?
Commission-based employees, contractors and self-employed salespeople may be able to claim advertising or lead-generation expenses where there is a direct connection to earning income. Fixed-salary employees generally have more limited entitlement.
Last updated: 14 July 2026
