DEDUCTIONS FOR INDIVIDUALS
While every care is taken to ensure the information contained herein is accurate and up to date, Macarthur’s MSVDH takes no responsibility for any decisions or actions taken by readers as a result of this information. Readers should seek professional advice before acting on any information contained within.
A Taxpayer is assessed on taxable income; this is total assessable income less allowable deductions.
Deductions are generally allowable if they are incurred in producing assessable income. Deductions are not allowed if they are the purchase of a capital item or could be considered to be of a private nature.
Expenditure for acquiring plant or items used to produce assessable income may be claimed by way of depreciation.
This checklist is a guide only and individual situations may influence the acceptance or non-acceptance as a taxation deduction.
BANK CHARGES
Only costs associated directly with interest earned or other income including cost of payroll into bank accounts. (NOTE: does not include all charges debited to bank accounts)
BATTERIES FOR TORCHES & CALCULATORS
Keep dockets or receipts or add to a diary entry if cost is under $10 each.
BEEPERS & PAGES
If cost is under $300, the full amount can be claimed as depreciation, or if over $300 depreciation over the life of the asset.
BOOKS & MAGAZINES
If related to your income earning activity they are generally deductible. Books over $300 will need to be depreciated.
BRIEFCASE or LUGGAGE
If used for work can be claimed as a deduction, with the $300 depreciation limit applicable.
BUSINESS SUBSCRIPTIONS
Costs of business & professional associations are generally allowable.
CAMERAS
If required as part of your employment generally can be claimed, with the $300 depreciation limit applicable.
CAR EXPENSES
If you are required to use your car to carry out your employment duties, ie carry tools, documents, equipment, transport persons, collect articles, errands, etc then you may be able to claim. For details of how to claim refer to our brochure on vehicle claims.
CLOTHING
Occupational specific clothing is claimable ie welder’s apron & gloves, white coat worn by a dentist, nurse’s uniform & special shoes. Maintenance cost of these are deductible, if over $150 substantiation is required.
COMPUTERS
A claim to the extent of use for employment purposes would generally be acceptable. Costs of consumerable items plus depreciation of capital cost together with cost of programmes applicable to employment could be claimed.
CONVENTION, CONFERENCE, SEMINARS
Providing it relates to your employment these costs are generally allowable. Cost of travel can also be included.
DISABILITY INSURANCE
Premiums for income protection are generally allowable.
DRIVERS LICENCES
Drivers licences normal motor vehicles are not allowable, however costs for endorsements for heavy vehicles, buses, hire car etc, can be claimed. If you are claiming motor vehicle running costs the proportional cost of the licence can be included.
EDUCATIONAL EXPENSES
Deduction will apply if the costs are necessary to keep up to date or to improve the employee’s ability to perform their duties. Expenses in gaining qualifications for promotion within an existing career may also be allowable. Seminars & short courses run by professional bodies are generally allowable. For self education expenses incurred by individuals for courses run by educational institutions, such as schools, colleges & universities, the first $250 is not claimable.
FITNESS EXPENSES
Deductible if required carrying out your employment. Advice should be obtained before making a claim.
GLASSES
If they are of a protective nature a claim can be made. Consider having safety glass inserted in your ordinary reading glasses if you can demonstrate a safety reason.
HOME OFFICE
If you record the time you are required to work at home, then a claim may be able to be made for heating & electricity. For further information refer to our “Home Office” booklet.
LEVIES
Profession associations, business groups & trade unions are generally deductible if they relate to assessable income.
LIBRARY
Textbooks, costs of a professional library can be depreciated at 25% reducing balance method.
MEDICAL EXPENSES
If the total of your medical expenses exceed $1500 net after health insurance refunds a 20% rebate will apply. Costs should include: Doctors, nurses, chemists, hospitals, dentists, optometrists & opticians, artificial teeth, eyes, limbs, surgical appliances, glasses, hearing aids, cost of a guide dog or an attendant for an invalid.
MOBILE PHONES
If you can demonstrate that the cost is related to your employment the costs can generally be claimed.
NEWSPAPERS
To claim there would have to be a direct link to your employment. A partial deduction could be claimed where a specific link is established with employment, ie teachers could show a link by using clippings for teaching aids.
OVERTIME MEAL & TRAVEL COSTS
If an allowance is included in assessable income & is paid under an award, the taxpayer can generally claim a deduction for the same amount without having to substantiate the claim. Any amounts over the award limit will have to be supported with receipts for the whole cost not just the amount over the award limit. Meal costs of $15 are considered reasonable.
PENS & STATIONERY
Items can be claimed if they relate to your employment. Substantiation could be by receipt or diary entry if the item is below $10 each & total under $200. Items over $300 will need to be depreciated.
PERSONAL GROOMING
Costs of this nature relate to occupational specific persons, ie entertainers. However in line with Court determinations persons may claim where their employment calls for a standard of grooming clearly higher than normal or due to employment conditions, ie airline cabin crew.
POLITICAL CONTRIBUTIONS
Are deductible to a registered political party, including membership, claim must be greater than $2 and less than $1500. A deduction of a gift up to $1500 made to independent candidates can also be claimed.
POSTAGE
Is claimable provided it is paid in relation to employment related matters ie courses or obtaining items of a deductible nature.
PROTECTIVE CLOTHING
Providing the clothing protects against personal injury or damage to other clothes, the cost would be considered claimable. Examples: Protective boots, aprons, protective helmets, safety glasses, special glasses worn by VDU computer operators, overalls.
RELOCATION EXPENSES
In normal circumstances costs paid by employees are not claimable.
SHEARERS’ PROTECTIVE CLOTHING
Shearers can claim for items of clothing & footwear, which protect against hazards of the occupation. Shearers’ jeans, dungarees, singlets boots & moccasins specially required & designed to protect, are claimable.
STREET DIRECTORIES
Provided used for employment can be claimed.
SUNGLASSES, SUNHATS, SUNSCREENS
They are generally not deductible unless it can be demonstrated that you are exposed to the sun in your employment, however each individual case should be considered.
TAX RELATED COSTS
Costs for preparation of your tax return, dealing with objections, appeals, audits, tax-planning advice provided it related to your income, are considered claimable.
TELEPHONES
Calls from a home phone may be claimable in proportion to a direct connection to employment. Cost of calls & rent can be claimed, it is suggested a diary of all calls that are employment related is recorded and all phone bills kept.
TELEVISION SETS
Can be claimed where there is a direct connection with employment.
TOOLS
When used with employment can be claimed. $300 depreciation limit applies.
TRADE & TECHNICAL JOURNALS
Are claimable where they relate to employment.
TRAVEL ALLOWANCES & COSTS
Refer to our booklet on Travel Costs
TRUCK DRIVERS
Refer to our booklet on Truck Drivers
TRAVEL TO WORK & HOME
Travel between home a place of permanent employment is generally not claimable, however if a need to use a vehicle can be demonstrated to carry but not just to convey the taxpayer, a point of argument can be established that may establish deductibility of the claim. Professional advice should be sort.
UNIFORMS
The cost of corporate uniforms is deductible if it has specific corporate logos or other identifiers or it is compulsory that employees wear the uniform, or it is registered with the appropriate government authority. Maintenance of corporate uniforms will also be claimable.
GENERAL
If you believe that an expense is related to your employment, then keep the receipt or diary entry the cost and request our opinion as to your degree of success in defending an objection from the tax office.