A – Z of Tax Deductions
- Airport lounge membership: Deductions to the extent used for work-related purposes.
- Annual practicing certificate: Applies to professional persons and other contractors who must pay an annual fee to practice in their chosen field.
- Bank charges: Deductions are allowed if account earns interes Not private transaction fees.
- Briefcase: If used for work and/or business purposes the cost is fully deductible if $300 or less.
- Calculators and portable electronic devices: if used for work and/or business purposes the cost is fully deductible if $300 or less.
- Cleaning: Of protective clothing and uniforms.
- Clothing, uniforms and footwear:
- Compulsory uniform: Uniform must be unique and particular to an organisation.
- Non–compulsory uniform: If on a register kept by the Department of Industry, Science and Tourism.
- Occupational specific: The clothing identifies a particular trade, vocation or profession (e.g. chefs, nurses).
- Protective: Must be used to protect the person or their conventional clothin May include sunscreen.
- Coaching classes: Allowed to performing artists to maintain existing skills or obtain related skills.
- Computers and software: Software is deductible if it costs less than $300.
- Conferences, seminars and training courses: Allowed if designed to maintain or increase employee’s knowledge, skills or ability.
- Depreciation: Tools, equipment, and plant used for work purposes for each item costing more than $300.
- Dry cleaning: Allowed if the cost of the clothing is also deductible.
- Election expenses of candidates: No limit for Federal, State and Territory. Limit of $1,000 for Local Government.
- Employment agreements: Existing employment.
- First Aid course: Provided it is directly related to employment or business activities.
- Gaming license: Hospitality industry employees.
- Gifts of $2 or more: If made to approved ‘deductible gift recipient’ body or fund.
- Glasses and goggles: Protective only.
- Home office expenses: Utility expenses (for example, heat, light, power) or safe harbour rate of 52 cents per hour.
- Income continuance insurance: Allowable only if the proceeds are assessable.
- Insurance – sickness or accident: When benefits would be assessable income.
- Interest: Allowed if money borrowed for work-related purposes or to finance income earning asset Interest paid on underpayment of tax (e.g. general interest charge) is deductible.
- Internet and work computer: Expenses allowed to the extent incurred in deriving individual’s work- related income, carrying on a business or earning investment income.
- Laundry and maintenance: Allowed if the cost of clothing is allowable. Reasonable claims of up to $150 do not need to be substantiated.
- Legal Expenses: Renewal of existing employment contract.
- Meals: Meals acquired when travelling overnight for work-related purpose. Overtime meals, if allowance received under award.
- Medical examination: Only if the referral of a work-related business license.
- Parking fees and tolls: Includes bridge and road tolls (but not fines) paid while travelling for work-related purposes.
- Photograph: Cost of maintaining portfolio.
- Practicing certificate: Applies to professional employees.
- Prepaid expenditure for tax shelter arrangements: They must be spread over the period in which the services are provided.
- Prepaid expenses: Non-business individuals and SBE taxpayers claim is fully deductible if services are to be performed in period not exceeding 12 months.
- Professional association fee
- Professional library (books, cds, videos etc.): For an established library, including new books if cost is less than $300.
- Protective equipment: Includes harnesses, goggles and safety glasses, breathing masks, helmets and boots. Claims for sunscreens, sunglasses and wet weather gear allowed if used to provide protection from natural environment.
- Repairs: Income producing property/or work-related equipment.
- Self– education costs: Claims for fees, books, travel and equipment e only allowed if there is a direct connection between the course and the person’s income earning activities.
- Seminars: Including conference and training courses if sufficiently connected to work activities.
- Stationery: Diaries, log books.
- Subscriptions: Publications if a direct connection between the publication and income earned by the taxpaye Includes professional associations at a maximum of $42 if no longer gaining assessable income from that profession.
- Sun protection: Claims for sunglasses, hats and sunscreen allowed for taxpayers who work outside.
- Superannuation contributions: Claims allowed for concessional personal contributions.
- Supreme court library fees: Applies to barristers and solicitors if paid on an annual basis.
- Tax agent fees: Deduction can be claimed in the year incurred.
- Technical and professional publications.
- Telephones and other telecommunications equipment: Includes cost of telephone calls related to work purposes and rental charges if ‘on call’ or required to use on a regular basis.
- Tools: If cost if $300 or less
- Travel expenses: Where employee has no usual place of employment (e.g. travelling salesman). If actually working before leaving home (applies in limited circumstances only). Must transport bulky items
- Travel from home to alternate work place (for work-related purposes) and return to normal work place (or directly home).
- Travel between normal work place and alternate place of employment (or place of business) and return (or directly home)
- Travel between two work places. Travel in course of employment.
- Union and professional association fees.