A – Z of Tax Deductions

 A

  • 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.

B

  • 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 les
  • Calculators and portable electronic devices: if used for work and/or business purposes the cost is fully deductible if $300 or less.

C

  • Cleaning: Of protective clothing and uniforms.
  • Clothing, uniforms and footwear:
  • Compulsory uniform: Uniform must be unique and particular to an organisation.
  • Noncompulsory 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.

D

  • 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.

E

  • Election expenses of candidates: No limit for Federal, State and Territory. Limit of $1,000 for Local Governmen
  • Employment agreements: Existing employe

F

  • First Aid course: Provided it is directly related to employment or business activities.

G

  • Gaming license: Hospitality industr
  • Gifts of $2 or more: If made to approved ‘deductible gift recipient’ body or fund. See www.ato.gov.au for a full lis
  • Glasses and goggles: Protective onl

H

  • Home office expenses: Utility expenses (for example, heat, light, power) or safe harbour rate of 45 cents per hour

I

  • Income continuance insurance: Allowable only if the proceeds are assessable.
  • Insurance – sickness or accident: When benefits would be assessable inco
  • 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 inco

L

  • Laundry and maintenance: Allowed if the cost of clothing is allowable. Reasonable claims of up to $150 do not need to be substantiate
  • Legal Expenses: Renewal of existing employment contra

M

  • 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.

P

  • Parking fees and tolls: Includes bridge and road tolls (but not fines) paid while travelling for work-related purposes.
  • Photograph: Cost of maintaining portfoli
  • Practicing certificate: Applies to professional employees.
  • Prepaid expenditure for tax shelter arrangements: They must be spread over the period in which the services are provide
  • 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 environmen

R

  • Repairs: Income producing property/or work-related equipmen

 

S

  • 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 e
  • 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 outsid Superannuation contributions: Claims allowed for employees and self-employed persons if their assessable income plus reportable fringe benefits if less than %10 of their total assessable income from all sources.
  • Supreme court library fees: Applies to barristers and solicitors if paid on an annual basis.

 

 T

  • 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 basi
  • Tools: If cost if $300 or les
  • 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 employmen

 

U

 

  • Union and professional association fees.