EOFY moves: what you can (and can’t) claim on tax in 2026
EOFY moves: what you can (and can't) claim on tax in 2026
Every June, customers ask us to add a line to their invoice that says "for tax purposes." We always tell them the same thing: save the time. The ATO's position on moving expenses is one of the clearest in the entire tax code, and it's not the answer most people want.
The headline answer
Removalist costs for personal moves are not tax deductible. Not when you move for a job. Not when your employer transfers you. Not when you take a promotion in another city. Not when you're in your second year on the job. The ATO is unambiguous on this and has been for decades.
The exact wording from the ATO's own page on Removal and relocation costs: "You can't claim a deduction for removal or relocation costs to transfer or relocate for work purposes."
That's it. Not buried in a footnote. Front-page text on the ATO website. The end-of-year question that fills our inbox every June has a four-word answer: no, you can't.
Why the answer is no
The ATO's reasoning is consistent with how the broader deduction framework works. To be deductible under section 8-1 of the Income Tax Assessment Act 1997, an expense must be incurred in earning your assessable income — there has to be a sufficient connection between the spend and the income.
Moving costs don't have that connection. They're incurred to get into a position to earn income at a new location. The ATO has long classed them as private or domestic in nature, the same category as buying clothes for work, your mortgage, or your weekly groceries. You can't deduct your rent and you can't deduct the move that put you in the position to pay it.
Older guidance — including Taxation Ruling TR 95/8, which was withdrawn on 19 June 2025 — set out related rules about employment-related expenses. The position on moves themselves has never wavered.
The four scenarios people ask about
Same answer, different paths to get there. Here's the breakdown.
"My employer required me to move"
Most commonThis is the scenario customers think changes the answer. It doesn't. The ATO has explicit guidance: even when an employer requires the move, the cost is not deductible to the employee. The ATO sees this as a private expense incurred to start earning at a new location, not an expense incurred while earning.
What can change the picture: your employer can pay or reimburse the move directly. That changes the tax treatment for them (it may attract Fringe Benefits Tax) but it shifts the cost burden off you entirely, which is the practical outcome that matters. Negotiate at the job-offer stage.
"I moved closer to my workplace"
Less commonIf you move from a 90-minute commute to a 15-minute commute, that's a real productivity gain. It is also still a personal expense in the ATO's view. The deductibility test isn't "does this help you do your job" — it's "is this incurred in producing your assessable income," which the ATO has consistently held it is not.
The proximity argument is one of the most-rejected deduction claims in ATO audit history. Don't put it on your return.
"I'm relocating for a new job in another state"
Common in EOFYAn interstate move with a job-offer letter feels like the strongest case. It still doesn't work. The ATO's position covers all relocations regardless of distance, regardless of whether you're starting a new job, transferring within a company, or returning from overseas.
The exception is itinerant work — genuine itinerant employment where you travel between work sites as part of the job, governed by Taxation Ruling TR 95/34. That's a narrow category covering, say, fly-in fly-out workers or commercial travelers. It does not cover a one-time move from Melbourne to Sydney to take a permanent role.
"I'm a landlord moving assets between properties"
The narrow exceptionHere's the only scenario with a real exception. The ATO's Rental Expenses guide acknowledges that costs incurred in relocating assets between rental properties may be deductible, provided they relate to producing rental income.
Concrete example: you own two investment properties, the fridge in property A breaks down, you move the still-functional fridge from property B to property A while you replace property B's. The cost of moving the fridge — directly attributable to producing rental income at property A — may be deductible.
Critical caveats. This is not the same as moving yourself into or out of an investment property. It applies to asset relocation only, where the assets remain rental property. Travel by you, the owner, to inspect rental properties has not been deductible since 1 July 2017 unless you're in the business of letting (a high bar). And the cost has to be apportioned if the assets are partly used privately. Get an accountant to confirm before claiming.
What you actually can claim around an EOFY move
The headline is gloomy but there are legitimate adjacent deductions for some taxpayers. None of them are the move itself.
Home office setup at the new place — if you legitimately work from home, the cost of running and maintaining a home office (a portion of utilities, depreciation on a desk and chair) follows the standard rules. The setup costs of moving the home office aren't deductible, but the ongoing costs at the new address are.
Investment property running costs — if you're moving out of a property you'll now rent, ordinary rental expenses (interest on the loan, property management fees, repairs, depreciation) become deductible from the date the property is genuinely available for rent. The cost of getting your stuff out, however, is not.
Self-employed business relocation — if you're a sole trader or business owner moving the business itself (not just yourself), some costs may be deductible against business income depending on structure. Get specific advice. The ATO is more willing to allow business move costs than personal ones, but the line is genuinely fact-dependent.
Stationery and supplies for the new role — uniforms, tools, or supplies required for a new job follow the standard work-expense rules. They're not "moving costs" in the ATO sense — they're work-related expenses that happen to coincide with the move.
What about employer-paid relocations?
This is the productive question, and the only place where money is genuinely on the table.
Under the Fringe Benefits Tax framework, an employer can sometimes provide relocation benefits to an employee with reduced or zero FBT impact, depending on whether the relocation falls within specific exemptions. The most relevant ones cover genuine relocations where the employee is required to live near a new workplace, and reasonable removal/relocation expenses are paid by the employer.
Practical version: when you negotiate a new job that involves a move, ask for relocation costs to be paid directly by the employer (not as a salary top-up). The employer's tax adviser can structure this so the cost lands on the employer's books rather than yours, often without creating a tax problem. This is the most common way Australian executives and senior hires actually get moving costs covered.
For most renters, students, and people moving for personal reasons (or because they got a regular new job), this option doesn't apply. The cost is yours, and so is the post-tax burden of paying for it.
The one EOFY move tip that actually saves money
Time the move strategically. Not for a tax deduction — for the actual price of the move.
Late June is the busiest moving period of the year because lease cycles, settlement dates, and end-of-financial-year operations all converge. Removalist demand is at its annual peak. So are prices. Booking 5+ weeks in advance for a late-June move locks in the lower rate. Booking 7-10 days out forces you onto the premium tier, where Sunday surcharges and end-of-month uplifts compound.
For Melbourne pricing context, see our Melbourne removalist cost pillar. For Sydney, our Sydney pricing pillar. Both explain why mid-week mid-month is half the cost of late-June Saturday.
Saving $400-$800 on the actual cost of the move beats hunting for a non-existent tax deduction. The maths is clearer and the outcome is real.
Book your EOFY move at the right rate
Get a transparent quote that names the date-of-week pricing, the Sunday premium, and the realistic transit window. No tax-deduction fairy stories.
Get my quoteThe bottom line
For personal moves — including those required by your employer — removalist costs are not tax deductible. They never have been in any meaningful way and the ATO's position hasn't changed in 2026. The only narrow exception is asset relocation between investment properties, and even that requires specific circumstances.
The honest EOFY moving advice is unglamorous: don't expect a tax break, do book early to lock in a non-peak rate, and if your employer is involved in the move, negotiate them paying directly rather than reimbursing you. That's where the actual money sits.
Talk to your accountant. The above is a removalist's summary of public ATO guidance, not personalised tax advice.