Last month we outlined the ATO hitlist this year from side hustles to property investors and some ill-claimed work expenses.
So this month, let’s flip the switch and outline the items you can indeed claim. Note this is provided you have receipts and can substantiate the expenses.
We’ve broken it down for individual industries. We’ve taken a broad sweep to cover as many workers as possible in this extensive list.
What can I claim this tax time in my industry?
Healthcare and social care (including nursing, physios, audiologists, dentists, doctors, allied health etc.)
- If you’re required to wear a uniform the cost is deductible.
- Cost of clothing you use at work to protect your ordinary clothes from soiling or damage such as laboratory coats and aprons.
- Protective clothing, such as non-slip shoes.
- Conference expenses as well as the cost of the conference itself, including travel, meals and accommodation costs (disallowing for any private expenses).
- Professional subscriptions such as AMA or a trade union.
- The cost of buying meals if you work overtime, provided they haven’t been covered by your employer. No double-dipping!
- If you get your work through an agency the cost is claimable.
- If you use your own for transporting patients, travelling between patient’s homes or travelling from one medical facility to another, all trips can be claimable.
Retail
- If you’re required to wear a uniform, the cost is deductible. Some retail workers are required to wear clothing from the particular store or brand they are employed by; but these are not tax deductible.
- If you spend time working from home you can claim a proportion of home running costs, either based on actual costs or a fixed rate of 67 cents per hour (with timesheet or time logs).
- Work-related courses including health and safety or first aid, management training or job-related courses.
- If you travel between stores, you can claim the cost of travel from one work location to another or to deliver stock.
Professional and administration
- The cost of a handbag or briefcase is deductible if used for work purposes, such as carrying paperwork or a laptop.
- Clothing specific to the legal profession, such as the robes and wigs worn in court by barristers.
- Annual practicing certificates for professionals such as lawyers and accountants.
- If working from home, you can claim a deduction for home office expenses either based on actual costs or a fixed rate of 67 cents per hour (with timesheet or time logs).
- Work-related journeys such as the cost of visiting clients or suppliers. If you use your own car, either claim 85 cents per kilometre up to a maximum 5,000kms or keep a logbook and claim your actual expenses.
- Parking, tolls and public transport.
- Professional indemnity insurance costs.
- The cost of entertaining clients isn’t tax deductible as neither is any club fees where you may entertain clients.
Education and training
- Annual teacher registration fees.
- References books or a professional library for the subject you teach.
- Prizes to reward students and encourage future performance.
- Stationary, art materials, stopwatches and computer consumables including pens and toner cartridges.
- Depreciation on technology costing more than $300 such as computers, laptops, tablets, mobile phones and printers (items less than $300 may be written off immediately).
- Teacher aids.
- Conferences and courses linked to your teaching including associated costs such as travel and textbooks.
- If you mark homework or prepare lessons whilst at home, you can claim home office expenses such as a proportion of internet costs and the associated costs of any technology you use such as computers and printers as well as a portion of utility bills.
- If you pay for school excursions, such as sporting or camping trips, out of your own pocket and aren’t reimbursed, the costs are claimable. This can include meals, transport and accommodation.
Construction & Manufacturing
- Tools or other work-related equipment for your job.
- Cost of insuring tools and interest charged on finance taken out to buy tools and equipment.
- Buying and maintaining your uniform if you’re required to wear one and it has the business logo on it.
- Protective items such as helmets, earmuffs safety goggles, sunglasses, sun hats and sunscreen.
- Trade union fees can be deducted.
- Renewing any professional licences, registrations or subscriptions.
- Self-education courses run by a University or TAFE (such as an apprenticeship course at a technical college), provided the course relates to your current job.
- Overtime meal expenses up to the amount spent where you have received a genuine overtime meal allowance under an industrial law, award or agreement.
A final note on deductions…
If you are claiming an expense – you must have a record!
If you cannot prove you spent it, you cannot claim it!
If you are missing paperwork, you leave yourself open to an ATO audit – nobody wants that on their plate.
One of the best decisions you can make is to sign up for an app to keep record of all your receipts throughout the year.
Stop rushing around come June 30 trying to find crumpled-up receipts or those that have faded within an inch of their life after sitting in your car for a year.
Many banks have their own dedicated receipting app, so it is often the next place to start.
Apart from that try:
The most reliable way to ensure you claim the right expenses for your industry is to engage a tax agent to prepare your annual tax return. We can assist with identifying what you can and cannot claim. And the best news, the fee is a tax deduction!
This year, if you are worried about completing your tax return, or if it has become too complex and you need assistance, contact the team to make an appointment.