ITP TAX TIPS
1. MOTOR VEHICLE DEDUCTIONS
Use the principles and information below to calculate how many kilometres you travelled for your job in a motor vehicle that either you or your partner own’
o If you travelled less than 5,000 kms for your job, enter the kms travelled into the questionnaire as marked.
o If you travelled more than 5,000 kms for your job, you must have a logbook covering at least a 12 week period.
o If you do not have a log book, you can still make a claim for 5,000 kms.
The “Main” types of travel for which you can claim motor vehicle expenses.
o You have a second job and travel directly from one job to the other.
o You travel from your normal workplace to an alternative workplace (i.e. another store or a client’s premises) and back to your normal workplace or directly home.
o You do not have a normal base of employment and you regularly travel between two or more workplaces or worksites during the day.
You can also claim a deduction for travel between home and work if ;
o You have to use your vehicle to carry heavy or bulky tools or equipment to work. i.e. tools, ladders etc, where there is no secure area for storing your tools
o home is a base of employment. You start your job at home and then travel to a workplace to continue the work.
o You travel from your home to an alternative workplace for work activities and then to your normal workplace or directly home. For example, if you have to attend a conference before going to work.
o You cannot claim a deduction for travel if…
o the travel is a normal trip between your home and your workplace, even if you do small tasks on your way to or from work. For example, picking up the mail.
o the travel is your normal trip to work, but; occurs more than once a day, is outside normal work hours, you are on call and have been called in to work or you live in an area where there is no public transport available and therefore have to use your vehicle.
o travelling to another workplace for a social function.
2. OTHER WORK RELATED TRAVEL EXPENSES
If you travel for your job as described above and incur expenses for travel other than in your personal motor vehicle, you can also claim those work related costs.
This includes spending on; motor bikes, panel vans, utilities, parking fees, tolls, planes, buses, trams, trains, taxis, short-term car hire, accommodation and the evening meal when staying away from home overnight for work.
As a very general rule, away from home expenses are not usually claimable unless your employer pays you an allowance to compensate the expense.
3. WORK RELATED CLOTHING
If you have work related clothing or a compulsory uniform / corporate wardrobe, as described here, you may be able to claim a deduction for the cost of buying, hiring, repairing and cleaning your uniform.
Compulsory uniforms/Corporate Wardrobe ;
o A compulsory uniform / corporate wardrobe normally is a set of clothing that carries the logo, initials or insignia of the employer and when worn together, identifies you as an employee of a specific employer.
o Wearing the uniform must be strictly enforced making it compulsory for you to wear the uniform while at work. Each item claimed must carry the logo and as a result, these uniforms would not normally be worn outside of the workplace or available to the general public.
o In some circumstances, you may be able to claim a deduction for shoes, belts, socks and stockings ONLY where they are an essential part of a distinctive compulsory uniform AND the characteristics of which, (colour, style, type etc), are specified in your employer’s written and enforced uniform policy.
o However, it does not include items or accessories of a conventional nature i.e., suits, shirts, skirts and trousers, plain uniform, underwear, ordinary fashion shoes, everyday footwear, hair accessories, sports clothes, T-shirts or conventional clothing, even if your employer tells you that you have to wear them.
o Single items of compulsory clothing
o You may be able to claim for a single item of distinctive clothing, such as a jumper or tie, where it is compulsory for you to wear it at work. This means that the item has the employer’s logo permanently attached and the item of clothing is enforced by the uniform policy and is not available to the general public.
o Non-compulsory uniforms or corporate wardrobe
o You may be able to claim a deduction for the cost of conventional clothing you wear at work ONLY if your employer has registered the clothing with AusIndustry or the ATO. Ask your employer to confirm if this is the case and obtain the registration number.
Protective clothing
o Protective clothing is clothing that protects you from personal injury at work or protects your everyday clothing from damage.
o Protective clothing that protects you from personal injury include such things as; Safety or Steel cap boots, helmets, gloves, fire resistant clothing, safety glasses, breathing masks, sunscreen, sun hats and sunglasses.
o Protective clothing that protects your conventional clothing from damage includes such things as; overalls, aprons, dust jackets, smocks and laboratory jackets.
o Protective clothing does not include, jeans, drill pants or shirts or wet weather gear worn for personal comfort as these items are lacking in protective qualities.
o You can claim a deduction for the cost of buying, hiring, replacing or maintaining eligible protective clothing.
o Laundry and dry cleaning
o If you can claim a deduction for your work or protective clothing, you may also be able to claim a deduction for the cost of cleaning and maintaining them.
o You can claim a laundry deduction for expenses incurred in washing, drying, dry cleaning and ironing eligible work or protective clothing, including Laundromat expenses.
o If your claim for laundry is $150 or less, you do not need receipts. If you wish to claim more than this amount, you need receipts for the total claim. Note, it is possible to claim $150 for laundry costs and the actual cost of dry cleaning for which you have receipts.
4. SELF-EDUCATION EXPENSES
o Self-education expenses are expenses related to a prescribed course of education provided by a school, college, university or other place of education. The course must be directly related to your current employment activities and lead to some form of credentials.
o In general, you can claim a deduction for the cost of self-education if there is a direct connection between your course of study and your work activities at the time the expense was incurred. Some valid reasons would include; maintaining or improving knowledge or skills that you use in your normal course of employment, gaining skills or knowledge that will increase the amount you earn from your current work or lead to a promotion within your field of work.
o The types of self-education expenses you can claim include; computer supplies, computer system repairs, interest on borrowed money used to purchase computers etc., textbooks, stationery, student union fees, course fees, tuition, photocopying, home study costs if a specific room is set aside for studying, certain travel expenses, certain vehicle travel costs, and depreciation on equipment used for self-education.
5. WORK RELATED EXPENSES
The following are examples of some other items that may be claimable provided they relate directly to the performance of your work duties ;
o Briefcases.
o Calculators & Organisers.
o Computer Software, apportioned between work and private use.
o Computer Systems*, to the extent that they are used for income producing activities and are claimed over time using the principle of Depreciation. If you claimed depreciation last year on your return for a computer you must provide us with a copy of the schedule. If you purchased a new computer system, you must provide full details of the purchase.
o First aid courses can be claimed, only if you are the designated first aid person.
o Home office / Private study running expenses.
o This is where you are required by your employer to take portions of your work home to complete and where a separate part of the home is designated to that purpose. Once eligibility is determined, you may claim portions of your running expenses including the costs of repairs to your home office furniture and fittings, heating, cooling, lighting and cleaning. You cannot claim occupancy expenses such as, mortgage interest or rates. If you are unsure, please contact us for assistance.
o Insurance of work tools and equipment.
o Interest on money borrowed to purchase work related equipment.
o Licences, certificates & permits
o Mobile phone. Call costs and or rental when used as a tool of your work. (Not purchase or installation)
o Overtime meals claimed with receipts or against a meal allowance.
o Seminars, conferences, workshops or training courses connected to your work.
o Stationery & Postage
o Telephone call costs and rental if you are on call. This includes Mobile phones.
o Texts & References, journals, periodicals, magazines, books, tapes, videos, records, dvd’s and magazines that have specific work content
o Tools of the trade* or equipment costing $1,000 or less
o Union and professional association fees
o *Tools or Equipment purchased for work which cost over $1,000, must be claimed using the principle of Depreciation. Please contact us for instructions if this applies to you or if you have claimed this in your last Tax Return.
You cannot claim a tax deduction for ;
o Child care expenses
o Drivers licences (the cost of getting or renewing )
o Fines imposed under law or by a court
o Glasses or contact lenses (prescriptions)
o Grooming including cosmetics, hair and skin care products
o Haircuts
o Meals during a normal working day, even if you receive an allowance
o Newspapers (in general)
o Relocation or Removal costs for job transfers
o Shoes, normal wear or casual shoes not specifically covered by a uniform policy.
o Social Club fees and staff functions
o Travel, normal travel from home to work where special conditions do not apply.
o Union joining fees (ongoing annual fees are deductible)
o Unlisted or silent telephone numbers
o Vaccinations
o Weight loss expenses
o Wristwatches (fob watches are allowed for nurses).
6. OTHER TAX DEDUCTIONS
Tax Agent Fees
You can claim the cost of obtaining taxation advice and attending to your taxation affairs. Deductions that can be made include any direct fees paid to a Tax Agent, Accountant, Barrister or Solicitor for taxation services, travel to the relevant appointments and telephone costs.
Donations
Charitable donations are deductible when made to a registered charity and do not involve the purchase of a product of material benefit to the donator. Poppies, badges pins etc are all allowable donations.
Donations that are not deductible include; raffle tickets, purchase of chocolates, pens etc, attendance at fundraising dinners, membership fees and payments to school building funds under some circumstances.
Medical expenses above $2,000
7. OTHER TAXATION ISSUES
Receipts
In order to claim an item as a deduction, you must be able to prove it with a relevant document i.e. a receipt. A valid receipt must contain all and full details of the item purchased, including the date of purchase, a description of the item, the purchase amount and the name of the supplier.
Record Keeping
All taxation records must be kept for 5 years from the date of lodgement of the return.
Return to top of page
RETURN TO TAX RETURN CHECKLIST
RETURN TO HOME PAGE