Maximising your work deductions
Being aware of the work related tax deductions you can claim can help reduce your taxable income and therefore reduce your tax payable position for the year.
Below are a few work deduction tips that may be relevant to your individual circumstances. This is not an exhaustive list.
- you can generally claim conferences, seminars and training courses as long as they maintain or increase your knowledge, skills or ability as an employee.
- you can claim tools, equipment, plant used for work purposes for each item costing less than $300. Items costing less than $300 are deductible outright in the year of acquisition.
- you can claim a first aid course as long as it directly relates to your employment or business activity.
- if you work from home you could claim home office expenses for utility expenses (for example, heat, light, power and depreciation on depreciating assets). The tax office provide a claim rate (cents per hour) each financial year dictating how much could be claimed. It is recommended a diary be kept for a sufficient timeframe to justify the claim.
- salary continuance cover (also known as income protection insurance) premiums are deductible (as long as they are paid by the tax payer).
- you can claim meal costs incurred when travelling overnight for work-related purposes. Meals eaten during a normal working day are not deductible.
- medical examinations are deducible if they are work related.
- professional association fees are deductible
Work related expenses: protective equipment is generally deductible if they are related to your job/business (including harnesses, goggles, safety classes, breathings masks, helmets, boots). Sun protection costs (such as sunscreen and glasses) are also deductible if your job/business requires you to work in the sun.
Please note that how much of the expense that is allowed as a tax deduction will depend on the extent the expenses are incurred in earning your assessable income (wage, business income etc).
We suggest that if you are unsure if you can claim something, keep written evidence of the claim (such as an invoice) and seek advice from your accountant when you do complete your end of year tax return.
Please call our office on (07) 4980 7700 if you would like specific taxation advice for your situation.