Tax Deductions for Disability Support Care Worker

(last updated 23/04/2014) 

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If you work as a Disability Support Care Worker, here is a checklist of tax deductions you may be able to claim on your personal tax return.
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Tax Deductions for Teachers

(last updated 23/04/2014) 

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If you work as a teacher, here is a checklist of tax deductions you may be able to claim on your personal tax return.
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Compulsory Work Uniform

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When Can You Claim a Deduction for Compulsory Work Uniform?

You can claim a tax deduction for a compulsory work uniform where certain conditions are met.

A compulsory work uniform is a set of clothing or a single item that identifies you as an employee of an organisation. To be an allowable deduction, your employer must have a strictly enforced policy that makes it compulsory for you to wear the uniform while at work.
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Non-compulsory Corporate Uniform

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Non-compulsory work uniform

A work uniform is non-compulsory where your employer does not strictly enforce the wearing of this clothing at work. This usually means that you (not your employer) decide whether or not to wear particular types of clothing.
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Occupation Specific Clothing


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What is Occupation-specific clothing

Occupation-specific clothing distinctively identifies you as a person associated with a particular profession, trade, vocation, occupation or calling. The characteristics of occupation-specific clothing are:
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eTax and Allowable Deductions Checklist

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Etax and Allowable Deductions

The following tax time tips and check lists will help you prepare your annual etax return and calculate your tax refund.

See this post with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle summary of Assessable income.

Allowable Deductions is where all the action is since they reduce the “taxable” income, the amount on which most tax calculations are made. Whether you are using etax, a local tax agent or other online tax return preparation service, deductions are a very important component of the annual tax return. The more deductions the bigger the tax refund!
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Claiming Overnight Travel Allowance

ATO Travel and Overnight Allowance

Claiming overnight travel allowances can be a tricky area. Our blog receives lots of hits on this topic and also receives many comments and questions. You can also see these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle - checklist of eTax and Assessable Income and deductions and checklist of eTax and Allowable Deductions.

The problem with claiming travel allowance is the two ways that travel can be claimed:
  1. Reasonable Travel Allowance Expense Method; or
  2. LAFHA (Living Away From Home Allowance)
Reasonable Travel Allowance Expense Method

Key points of claiming travel allowance expenses and overtime meal allowance expenses are:
  •  Allowance must be paid - The substantiation exception only applies if the employee is paid a assessable overtime meal allowance or a assessable travel allowance. The allowance must have an identifiable connection with the nature of the expense covered.
  • Claim must be allowable - A deduction claim cannot exceed the amount actually incurred for work-related purposes. The payment of an allowance does not of itself allow a deduction to be claimed.
  • For travel expenses - The employee must sleep away from home.
  • Substantiation exception - Where the amount claimed is no more than the applicable reasonable amount, substantiation of the claim with written evidence is not required.
  • Claims in excess of reasonable amounts - If the amount claimed is more than the reasonable amount, the whole claim must be substantiated, not just the excess.
The ATO sets out "reasonable" amounts that can be claimed for each night which attracts the substantiation exception (without receipts) while travelling away from home for work. However, to be entitled to it the employee must be in receipt of a taxable "travel" allowance to cover the costs of meals and or accommodation while away.

This is called "Reasonable Travel Allowance Expense" method and does not require SUBSTANTIATION of the deductible amount claimed. In other words,if you meet the requirements of this method the claim does not have to be supported by receipts and invoices.

The deductions that can be claimed using this method are:
  • overtime meal allowance expenses - for food and drink in connection with overtime worked and where a meal allowance has been paid under an industrial instrument;
  • domestic travel allowance expenses (amount varies on location) - allows for accommodation, food and drink, and incidentals;
  • travel allowance expenses for employee truck drivers ($93.40 base rate for 2015 - food, drink and incidentals that are covered by the allowance; and
  • overseas travel allowance expenses - food, drink and incidentals that are covered by the allowance.

What Can Be Claimed:

There are three components to the "Reasonable Travel Allowance Expense" claim. Following is an example of the amounts claimable for Brisbane (total claim allowed without receipts $322.25) for 2015:
  • accommodation - $201.00
  • meals - $102.55 (B'fast $25.35; Lunch $28.55; Dinner $48.65)
  • incidentals - $18.70
Keeping Records of Overnight Travel

The following tables explain what records you need if you are claiming domestic or overseas travel expenses for accommodation, food, drink or incidentals.
If you did not receive a travel allowance:

Domestic travel
Overseas travel
Written evidence
Travel diary
Written evidence
Travel diary
Travel less than 6 nights in a row
Yes
No
Yes
No
Travel 6 or more nights in a row
Yes
Yes
Yes
Yes

If you received a travel allowance and your claim does not exceed the reasonable allowance amount:

Domestic travel
Overseas travel
Written evidence
Travel diary
Written evidence
Travel diary
Travel less than 6 nights in a row
No
No
No*
No
Travel 6 or more nights in a row
No
No
No*
Yes
*Regardless of the length of the trip, written evidence is required for overseas accommodation expenses but not for food, drink and incidentals
If you received a travel allowance and your claim exceeds the reasonable allowance amount:

Domestic travel
Overseas travel
Written evidence
Travel diary
Written evidence
Travel diary
Travel less than 6 nights in a row
Yes
No
Yes
No
Travel 6 or more nights in a row
Yes
Yes
Yes
Yes


There are different amounts claimable for different locations so we recommend you use a registered tax agent/accountant to help you prepare your tax return to obtain the maximum refund. Alternatively, if you use our online tax return system we will help you obtain the maximum refund:


LAFHA (Living Away From Home Allowance)

Many workers, and some employers, confuse the "Reasonable Travel Allowance Expense" Method with the LAFH allowance which is paid under the FBT rules - this is a tax free allowance on which the employer pays FBT. In this case there is no deduction available to employees as the allowance is exempt income. Expenses can not be claimed against exempt income.

This LAFH allowance method has undergone a lot of changes in 2013 onwards, requiring employees to make declarations for employers and to keep records of amounts expended on accommodation and or meals while living away from home. See this post for details of Changes to LAFH Allowance.

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:
Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started!  
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Claiming Work Related Expenses

(last updated 26/03/2014)

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Many workers have to pay for things for work. To claim an expense, you must have spent the money and not been reimbursed by your employer.

Deductible expenses canc include things like:
  • car expenses, including fuel costs and maintenance 
  • travel costs 
  • clothing expenses 
  • self-education expenses 
  •  union fees 
  • home computer and phone expenses 
  • tools and equipment expenses 
  • journals and trade magazines.
To claim an allowable deduction, the expense must:
  • relate to your work activity (eg. you wouldn't claim cooking classes if you are an office worker)
  • the expense is not private or personal (eg. trave lfrom home to work is considered private)
  • you can produce receipts or other written evidence  (note - credit card statements can be evidece of a work related cost).
You generally cannot claim the following expenses associated with your work: 
  • travel between your home and your workplace 
  •  expenses for a uniform consisting of conventional clothing like a black skirt and white shirt or blouse 
  • self-education expenses where the course you are undertaking does not have sufficient connection to your current employment.

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:
For help with your eTax return see our eTax Return Checklist.

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 
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Claiming Work Clothes, Uniforms & Overalls

(last updated 23/04/2014)

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Compulsory uniforms

A compulsory uniform is a set of clothing that, worn together, identifies you as an employee of an organisation having a strictly enforced policy that makes it compulsory for you to wear the uniform while at work. You can claim a deduction for the cost of buying, renting, repairing and cleaning a compulsory uniform.

You may be able to claim a deduction for shoes, socks and stockings where they are an essential part of a distinctive compulsory uniform, the characteristics of which—colour, style, type—are specified in your employer's uniform policy. The uniform policy must be consistently enforced. 

See this post for more details on claiming Compulsory Uniforms.

Single items of compulsory clothing

You may be able to claim for a single item of distinctive clothing, such as a jumper, where it is compulsory for you to wear it at work. Generally, clothing is distinctive where it has the employer's logo permanently attached and the clothing is not available to the general public. 

Non-compulsory uniform or wardrobe

Jf your employer encourages you to wear a uniform or corporate wardrobe but it is not compulsory for you to wear one, you can claim a deduction for the cost of the clothing only if the design of the clothing  has been entered on the Register of Approved Occupational Clothing of the TCFDA. Details of registered corporate wardrobes can be obtained either from your employer or from the Department of Industry directly on 03 9268 7944 - NOTE, there is no longer a public register available on the web.

If you wear a non-compulsory uniform or wardrobe, you cannot claim for stockings, short socks or shoes as these items cannot be registered as part of a non-compulsory uniform. Your employer can tell you if your non-compulsory uniform or wardrobe is registered. If your employer requires you to wear a distinctive uniform or wardrobe but does not consistently enforce the wearing of the uniform, the design of the uniform must be registered before you can claim a deduction. 

See this post for more details on claiming Non-compulsory Uniforms.

Occupation specific clothing

You can claim a deduction for the cost of occupation specific clothing. This is clothing that is specific to your occupation, is not everyday in nature and would allow the public to easily recognise your occupation—for example, a barrister's robes.

Protective Clothing

You can claim a deduction for the cost of buying, hiring, replacing or maintaining protective clothing. This is clothing that protects you from injury at work or protects your everyday clothing from damage. 

Laundry and dry cleaning

If you can claim a deduction for your eligible work clothes as described above, you can also claim a deduction for the cost of cleaning them. You can claim laundry expenses for washing, drying or ironing such work clothes, including laundromat expenses. If your claim for laundry expenses is $150 or less, you do not need written evidence—you may use a reasonable basis to work out your claim.
If you claim a deduction for laundry expenses that is more than $150 and your total claim for work expenses—other than car, meal allowance, award transport allowance and travel allowance expenses—exceeds $300, you need written evidence for the total claim. You can claim the cost of dry cleaning eligible work clothes as described above, if you have kept written evidence to substantiate your claim. You do not need written evidence if your total claim for work expenses is $300 or less. 

Uniform Allowances Received

If you receive an allowance for clothing, uniforms and or laundry allowance it should be shown in the Allowance Box on the Annual PAYG Payment Summary. See this post for a checklist of eTax and Assessable Income.

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:
For help with your eTax return see our eTax Return Checklist.

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 
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Claiming Computers and Software

(last updated 1/04/2014)

You can claim a deduction for the work related proportion of depreciation on the cost of computers. If you use your computer for private purposes you must apportion your depreciation amount between work related and private use.

You can also claim a deduction for the work related proportion of the cost of repairs to your computer and interest on money borrowed to finance its cost.

Costs incurred in acquiring, developing or commissioning computer software are depreciable and deductible over 2 ½ years at the rate of 40 per cent per year for the part of the year you owned the software. However, you may be able to immediately claim such costs in full where you incurred them:
  • before 1 January 2000 and for the principal purpose of ensuring that an existing computer system is year 2000 compliant or
  • in acquiring one copy of a particular unit of software during the current year, and its cost was less than $300 or
  • in acquiring more than one copy of a particular unit of software during the current year, and the total cost of all the copies you acquired was less than $300.
In all cases, you must apportion your claim between work related and private use.

See this post for details and a checklist of Low Value Pool Depreciation.

For help with your eTax return see our eTax Return Checklist.

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your 2014 tax refund estimate and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 
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Travel Allowance & Living away from home (LAFH) Allowance for Construction Workers

(last updated26/06/2013)

See this post for the latest ATO Changes to LAFH Allowance and FBT

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TAX WARNING! See this post for the latest ATO views and case law relating to travel allowances and associated travel expenses - Travel Allowance Update 2014.

What is "Travel" Allowance and "Living Away From Home" (LAFH) Allowance

Many construction workers are missing out on large deductions for "Travel allowance" and "Living Away From Home Allowance" (LAFH).

In many cases, construction and other workers receive a travel allowance and or a LAFH allowance to cover the costs of accommodation, food and other costs while working away from home. But these allowances, although sounding similar, are different in both the way they are paid and the way a deduction is claimed. For a detailed explanation of both see our post Claiming Travel Allowance Expenses.

Receving "Travel" Allowance

Receipt of a "travel" allowance is a pre-requisite to claiming a travel allowance using the ATO's "reasonable" amount method that does not require substantiation. A "travel" allowance is assessable income (see our post What is Assessable Income) and must be included as income on your tax return.

Some employers show the allowance separately on the PAYG Payment Summary. Others don't. That is when we need to do some more investigation to confirm receipt of a "travel" allowance.

In some cases the allowance is folded into the "Gross Income" on the PAYG Payment Summary. In this case, you need to either check your paysips for the detail or obtain a letter from your employer confirming receipt of a "travel" allowance and the amount.

Claming against "Travel" Allowance

The ATO provides guidelines for "...what are the reasonable travel and meal allowance expense amounts..." that can be included in the tax return. Where a construction worker has received an "assessable" travel allowance than travel expense claims can be made under these guidelines. The benefit of using the "reasonable" expense method is the expense claims do not require substantiation.

Where workers wish to claim more than the guidelines the total expense must be substantiated (not just the amount in excess of the ATO guidelines).

For the 2013 tax return the "reasonable allowance" can be between $213 and $472 per day, depending on circumstances and locations. For example, If a construction worker receved an assessable "travel" allowance and spent 70 days of the year in a country area the allowabe deduction to be included in the tax return could be $14910

Living Away From Home (LAFH) Allowance

Some care needs to be taken when "Living Away From Home Allowance" (LAFH) is received from the employer as this allowance is paid under the Fringe Benefits Tax (FBT) guidelines. Fringe Benefits are not "assessable" income for the employee since tax has already been paid on the amount under the FBT rules. Accordingly, you can not claim a tax deduction against the allowance using the ATO's "reasonable" expense method.

LAFH allowances are usually made for longer term arrangements. A claim against this reimbursement can only be made where the actual expense incurred by workers is greater than the allowance received. In this case the total amount claimed must be substantiated (ie. receipts for all costs - not just the amount in excess of the allowance). An exception to this is where the number of days away is 21 days or less on each arrangement.

See this post for the latest ATO Changes to LAFH Allowance and FBT

Missed out on Claiming a Deduction for Travel Allowance?

Whether you are a construction worker, travelling sales person or for other reasons your employment requires you to travel away from home you may be entitled to a substantial allowable deduction. The LAFH allowance relates to both domestic and overseas work related travel.

If you haven't claimed the deduction in your current or previous tax returns you are able amend your tax return up to two years after the assessment was issued. There may be additional tax dollars you are currently entitled to?

If you believe you have missed out on this deduction you can contact our office on 07 3208 3888 and discuss it further. It doesn't matter if you are local or interstate - we can still do your tax returns by Internet, email or snail mail.

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 
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