Searching for a new job is about more than just updating your resume and hitting ‘apply’. In 2025, Australians face a range of job hunting expenses—some expected, some surprising. With shifting tax rules and the growing cost of living, understanding these costs and knowing what you can (and can’t) claim on your tax return is essential for making smart financial decisions during your career transition.
The Real Costs of Job Hunting in 2025
Job hunting in Australia has always come with its fair share of costs, but in 2025, several trends are shaping the landscape:
- Application Fees & Certification: Many professional roles now require up-to-date certifications or police checks, with costs rising due to increased demand and regulatory changes.
- Professional Services: Resume writers, career coaches, and LinkedIn optimisation experts are in high demand. Fees for these services typically range from $100 to $500 or more.
- Technology & Equipment: Remote interviews are the norm, so reliable internet, quality webcams, and microphones may be necessary upgrades for many job seekers.
- Travel & Accommodation: While remote interviewing is standard, some industries still require in-person assessments or group interviews, especially for government, mining, or healthcare roles outside major cities.
- Wardrobe Refresh: For those returning to the workforce after a break, investing in professional attire can be a significant expense.
What Job Hunting Expenses Are Tax-Deductible?
The Australian Taxation Office (ATO) has strict rules around claiming job search costs. The big update for 2025: you can only claim expenses if you’re seeking a new job in your current occupation—switching industries or looking for your first job isn’t covered.
Common claimable expenses include:
- Travel to Interviews: If you’re attending interviews or meetings related to a job in your existing profession, you may claim public transport, car expenses (using the cents per kilometre method), parking, and even some accommodation costs if overnight stays are required.
- Resume and Application Costs: The cost of printing and mailing resumes, as well as fees paid to professional resume writers or agencies, are claimable.
- Phone Calls and Internet: Job-related calls and a portion of your internet bill (if used for job searching) can be claimed, provided you keep detailed records.
Note: You can’t claim costs for clothing, haircuts, or grooming—even if it’s for a job interview. Nor can you claim expenses for seeking your first-ever job or switching industries.
Smart Strategies to Minimise Your Job Hunting Costs
With the job market still competitive and cost of living pressures biting in 2025, here’s how to keep your job search budget in check:
- Leverage Free Resources: Use free online tools for resume building, interview prep, and skills assessment—many government and university career hubs offer updated resources.
- Network Online: LinkedIn and industry-specific forums often feature job openings and networking events that don’t require expensive memberships or travel.
- Set a Budget: Track your job search spending. Use a spreadsheet or app to log every cost—from application fees to public transport—so you know where your money’s going (and what might be claimable).
- Stay Organised for Tax Time: Keep digital copies of receipts, travel logs, and application confirmations. The ATO has increased scrutiny on deductions, so accurate records are a must.
- Negotiate Where Possible: Some recruiters and career coaches offer package deals or sliding-scale fees for job seekers—don’t be afraid to ask.
Looking Ahead: Policy Shifts and Economic Trends
Several 2025 policy updates may impact job hunting costs:
- Tax Deduction Tightening: The ATO’s 2025 guidance clarifies that job search deductions are under greater review, especially for remote work-related expenses.
- Skills & Training Subsidies: The federal government has expanded funding for mid-career upskilling, with new micro-credential programs in health, IT, and trades—potentially reducing out-of-pocket course costs for job changers.
- Remote Hiring Expansion: More employers are hiring remotely, which may reduce travel costs but increase pressure to have up-to-date tech at home.
Staying informed about these changes can help you budget wisely and avoid surprises.
Conclusion
Job hunting in 2025 can take a real bite out of your wallet, but with smart planning and up-to-date knowledge of what’s claimable, you can keep costs under control and stay focused on landing your next opportunity. Stay organised, leverage free resources, and keep an eye on policy updates to maximise your job search success.
