As a general rule of thumb, work-related expenses are tax deductible if:
- they were paid by a you and were not reimbursed by your employer
- they relate directly to earning your income
- you have a record to prove it.
If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion. Work expenses reimbursed to you by your employer are not deductible.
ATO may seek information from your employer if they think you have claimed a deduction for an expense that you have already been reimbursed for.
List of Possible Tax Deductions
- Motor vehicle travel to and from work if having either shifting workplaces (working at more than one site each day before returning home), or transporting bulky equipment.
- Motor vehicle travel between job sites, to pick up materials, or attending training courses.
- Computers, tools and equipment.
- Dogs, when used at worksites to guard the electrician’s tools against theft. The purchase cost of the dog and training fees are not deductible as they are capital costs. In contrast, vet bills and pet food bills may qualify as a tax deduction.
- Phone and internet – work %.
- Overnight travel expenses visiting clients or attending different workplaces – includes meals and accomodation.
- Protective clothing including sun-protection clothing, safety-coloured vests, steel-capped boots, gloves, overalls, and wet weather gear.
- Overtime meals – if overtime meal allowance received under an industrial award.
- Sun protection costs including sunglasses and sunscreens.
- Union fees, licences, registrations and subscriptions.
- Courses, seminars and self-education expenses.
- Home office running expenses.
- Compulsory work uniform branded with the employers logo.
ATO website: Tradesperson: work-related expenses
ATO poster: Tradesperson
Unsure whether an expense which you incurred is tax deductible? Send us all your receipts when requesting for your tax return to be prepared. Our tax accountants will check and advise on tax deductibility. Contact us for assistance with your tax returns today!