Can I Claim ChatGPT on Tax in Australia? (2026 Guide)

Freaky Newguy — Wed, 21 Oct 2026 03:32:56 +0000

Estimated reading time: 6 minutes · Last checked: 20 October 2026

Paying for ChatGPT Plus, Claude Pro or Gemini and using it for work? You may be able to claim it on tax in Australia, but only the share you use for work, and only if you can back it up. Here’s how the ATO’s rules apply to AI subscriptions, whether you’re an employee or a sole trader. If you lodge your own 2025–26 return, it’s due by 31 October.

Short answer: yes, you can claim ChatGPT on tax if you pay for it yourself, use it to earn your income and keep records. You claim only the work-use percentage. Employees put it under other work-related expenses. Sole traders and businesses claim it as a business expense. You can’t claim it if your employer pays for it or pays you back.

Jump to: Employees · Working out your claim · Paying yearly · Working from home · Sole traders · FAQ

Can I claim ChatGPT on tax as an employee?

Yes, if it meets the ATO’s three golden rules for work-related expenses:

It relates to earning your income. You use it to do your job, not just for personal stuff.
You paid for it yourself and weren’t reimbursed. If your employer pays for it or pays you back, you can’t claim it.
You have records to prove it, such as an invoice or receipt.

The ATO’s guide for IT professionals counts “annual subscriptions to software services” as software you can claim for work use. AI subscriptions like ChatGPT, Claude, Gemini and Copilot fit the same rules. In myTax, you add them under other work-related expenses.

How to work out your claim

Add up what you paid between 1 July 2025 and 30 June 2026, using your invoices or bank statements.
Work out your work-use percentage. The ATO wants a record, such as a diary note, showing how much you use it for work. A simple diary over a typical few weeks of what you used it for does the job.
Multiply the two. That’s your claim.

Example: say you paid A$30 a month for ChatGPT Plus all year, A$360 in total, and your diary shows you use it 60% for work. You can claim A$216. A deduction lowers your taxable income rather than coming back dollar for dollar: if you’re in the 30% tax bracket, it cuts your tax by about A$69, including the 2% Medicare levy.

Paying yearly instead of monthly

Monthly payments are simple: you claim the work share of what you paid during the income year. Yearly plans can be trickier. The ATO’s guides say software costing $300 or less can be claimed in the year you buy it, while software costing more is generally claimed over time. Claude Pro on yearly billing is A$340, so if you’re claiming a yearly plan over $300, check with a registered tax agent how to claim it.

Working from home? Claim it separately

If you use the ATO’s fixed rate method for working from home (70 cents per work hour for 2025–26), that rate covers energy, internet, phone, stationery and computer consumables. You can’t claim those separately on top. Software subscriptions aren’t on that list, so the work share of your AI subscription is claimed on its own.

Sole traders and businesses

It’s a business expense. The ATO treats software subscriptions as operating expenses, which you generally claim in the year you pay them.
Only the business share counts. If you also use it privately, you split the cost and claim only the business part.
Registered for GST? You may be able to claim the GST back as a credit, but you need the right invoice. Does ChatGPT charge GST in Australia? explains how to get one from OpenAI and Anthropic.
Keep the paperwork. The ATO says to keep tax invoices and details of how you worked out your business-use percentage.

What you can’t claim

A subscription your employer pays for, or pays you back for.
The share you use for personal things: holiday planning, recipes, homework help for the kids.
A claim you can’t back up with records.

The fine print: this is general information, not tax advice. Everyone’s situation is different, so for anything you’re unsure about, talk to a registered tax agent or check with the ATO. Fittingly, the ATO itself has warned people against relying on AI for tax information, saying “Your tax return isn’t the place for guesswork.” There are no affiliate links in this post.

FAQ

Can I claim ChatGPT Plus if I use it for work and personal stuff?

Yes, but only the work share. Keep a record that shows how you worked out your work-use percentage.

Where do I put it in my tax return?

In myTax, under other work-related expenses in the Deductions section. Sole traders include it with their business expenses.

Do I need receipts?

Yes. The ATO says you need a record to prove each expense, usually a receipt, and written evidence if your total work-related claims are more than $300. Your AI provider’s invoices, which you can download from your account, do the job.

Does the same apply to Claude, Gemini and Copilot?

Yes. The rules are about how you use the subscription, not which company it’s from.

Can I claim the GST back?

Only if you’re registered for GST and use the subscription for your business. Employees just claim the full amount they paid, GST included.

When is my tax return due?

If you lodge it yourself, by 31 October. If you use a registered tax agent, they can lodge later, but you need to sign up with them before 31 October.

Related guides on FNG

Written by Scott (Freaky Newguy), a Sydney-based IT worker. How I check prices.

Sources

Three golden rules and tax time focus: ATO media release, 27 April 2026
Software and subscriptions for work: ATO, computers, laptops and software and the ATO guide for IT professionals
Where to claim and record rules: myTax 2026, other work-related expenses
Working from home fixed rate: ATO, fixed rate method
Business software expenses: ATO, deductions for digital product expenses
Tax rates: ATO, tax rates for Australian residents (2025–26)
Lodgment deadline: ATO, preparing your tax return
All ATO pages checked 20 October 2026

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