This checklist contains a general list of general and specific employment-related deductions and should be used as a guide only. The results may vary depending on individual circumstances. The individual should also have the relevant written evidence where required. Also, how much of the expense is allowable as a tax deduction will depend on the extent the expenses are incurred in earning the person’s assessable income.
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Tax deductible?Admission fees: For lawyers and other professionals. Disallowed as capital cost.NoAirport lounge membership: Deductions to the extent used for work-related purposes.YesAnnual practising certificate: Applies to professional persons and other contractors who must pay an annual fee to practice in their chosen field.YesBank charges: Deductions are allowed if account earns interest. Not private transaction fees.YesBribes to government officials and foreign government officials: Also exclude from the cost base and reduced cost base of CGT assets and cost of depreciating assets.NoBriefcase: If used for work and/or business purposes the cost is fully deductible if $300 or less. If more than $300, it must be depreciated.YesCalculators and electronic organisers: If used for work and/or business purposes the cost is fully deductible if $300 or less. If more than $300, it must be depreciated.YesCar: See Travel.Child care feesNoCleaning: Of protective clothing and uniforms.YesClothing, uniforms and footwearYesCompulsory uniform: Uniform must be unique and particular to an organisation (eg corporate uniform).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 (eg chefs and nurses).Protective: Must be used to protect the person or their conventional clothing.May include sunscreen.Club membership feesNoCoaching classes: Allowed to performing artists to maintain existing skills or obtain related skills.YesComputers and software: Software is deductible if it costs less than $300, otherwise deductible over 2.5 years. Except in-house developed software which is over five years (four years before 1 July 2015)YesConferences, seminars and training courses: Allowed if designed to maintain or increase employee’s knowledge, skills or ability.YesConventional clothingNoDepreciation: Tools, equipment, and plant used for work purposes for each item costing more than $300. Items costing $300 or less are deductible outright in the year of acquisition.YesDriver’s licence: Cost of acquiring and renewing.NoDry cleaning: Allowed if the cost of the clothing is also deductible.YesElection expenses of candidates: No limit for Federal, State and Territory.YesLimit of $1,000 for local government.Employment agreements: Existing employer (see TR 2000/5).YesNot available for new business/employer.Fines: Imposed by court, or under law of Commonwealth, State, Territory or foreign country (s26-5).NoFirst Aid course: Provided it is directly related to employment or business activities.YesGaming licence: Hospitality and gaming industry.YesGifts of $2 or more: If made to approved “deductible gift recipient” body or fund.YesSee ato.gov.au for a full list. Gifts to clients are deductible if employees can demonstrate a direct connection with earning assessable income.Glasses and contact lenses (prescribed): These would qualify as medical expenses. Deductible if “protective clothing”.NoGlasses and goggles: Protective only.YesGroomingNoHELP/HECS repaymentsNoHome office expenses: Utility expenses (for example, heat, light, power and depreciation on depreciating assets).Occupancy expenses: For example, rent, insurance, rates and land tax.YesDeductible only to the extent that home or study is used for income-producing purposes.Income continuance insurance: Allowed only if the proceeds are assessable.YesInsurance – sickness or accident: When benefits would be assessable income.YesInterest: Allowed if money borrowed for work-related purposes or to finance income earning assets. Interest paid on underpayment of tax (eg general interest charge) is deductible.YesFines and administrative penalties are not deductible. Interest on capital protected loans deductible except for non-deductible capital protection component.Internet and computer equipment: Expenses allowed to the extent incurred in deriving individual’s work-related income, carrying on a business or earning investment income (eg share investing).YesLaundry and maintenance: Allowed if the cost of clothing is allowable (see Work related clothing). Reasonable claims of laundry expenses up to $150 do not need to be substantiated.YesLegal expenses: Renewal of existing employment contract.YesMealsEaten during normal working day.NoMeals acquired when travelling overnight for work-related purpose.YesMeals when travelling (not overnight).NoOvertime meals: If allowance received under award.YesMedical examination: Only if from the referral of a work-related business licence.YesMotor vehicle expenses: See Travel expenses.Newspapers: Claims may be allowed in limited cases if the publication is directly related to income-producing activities.NoParking fees and tolls: Includes bridge and road tolls (but not fines) paid while travelling for work-related purposes.YesPhotographs (performing arts – with income producing purpose)Cost of maintaining portfolio.YesCost of preparing portfolio.NoPractising certificate: Applies to professional employees.YesPrepaid expenditure for tax shelter arrangements: They must be spread over the period in which the services are provided.YesPrepaid expenses: Non-business individuals and SBE taxpayers claim is fully deductible if services are to be performed in period not exceeding 12 months.YesAll other taxpayers must apportion claim over the period of service.Professional association and membership fees: Maximum of $42 if no longer gaining assessable income from that profession. Up front joining fees are generally capital in nature so would not be deductible under s8-1. Annual deductions may also be available in the same year under s8-1 where the criteria are satisfied – s25-55.YesProfessional library (books, CDs, videos etc) Established library (depreciation allowed)YesNew books: Full claim if cost $300 or less (includes a set if total cost is $300 or less).YesNew books: Depreciation if cost over $300 (includes a set if total cost is more than $300).YesProtective equipment: Includes harnesses, goggles, safety glasses, breathing masks, helmets, boots. Claims for sunscreens, sunglasses and wet weather gear allowed if used to provide protection from natural environment.YesRemoval and relocation costs If paid by the employer, may be exempt from FBT, but deductible.NoRepairs (income producing property/or work-related equipment).YesSelf-education costs: Claims for fees, books, travel (see below) and equipment etc allowed if there is a direct connection between the course and the person’s income earning activities.YesNo claim for the first $250 if course is undertaken at school or other educational institution and the course confers a qualification. However, that first $250 can be offset against private expenses, eg travel, child minding fees, etc.Seminars Including conference and training courses if sufficiently connected to work activities.YesSocial functionsNoStationery (diaries, log books etc.)YesSubscriptionsPublications If a direct connection between publication and income earned by taxpayer.YesSports clubs.NoSun protection. Claims for sunglasses, hats and sunscreen allowed for taxpayers who work outside.YesSuperannuation contributions: Claims allowed in respect of employees. Substantially self-employed persons if their assessable income, reportable fringe benefits plus reportable employer superannuation contributions is less than 10% of their total assessable income from all sources, reportable fringe benefits plus reportable employer superannuation contributions total.Yes No deduction is available for interest on borrowed monies used to finance deductible personal superannuation contributions.Supreme Court library fees Applies to barristers and solicitors if paid on annual basis.YesTax agent fees (deduction can be claimed in the income year the expense is incurred).YesTravel and accommodation expenses if for travel to a tax agent or other recognised tax adviser to obtain tax advice, have returns prepared, be present at audit or object against an assessment.Cost of other incidentals if incurred in having tax return prepared, lodging an objection or appeal or defending an audit.Technical and professional publicationsYesTelephones and other telecommunications equipment (including mobiles, pagers and beepers.) Cost of telephone calls (related to work purposes).YesInstallation or connection.NoRental charges (if “on call” or required to use on regular basis).YesSilent telephone number.NoTools (work related only) If cost is $300 or less.YesIf cost more than $300, the amount would be depreciable, and the amount deductible equals to the decline in value).YesTrauma insurance. If benefits capital in nature.NoTravel expenses. Including public transport, motor vehicles and motor cycles, fares, accommodation, meals and incidentals.Travel between home and work.NoWhere employee has no usual place of employment (eg travelling salesperson).YesIf “on call”.NoIf actually working before leaving home (eg doctor giving instructions over phone from home. Note that this applies in limited circumstances only).YesMust transport bulky equipment (eg builder with bulky tools).YesTravel from home (which is a place of business) to usual place of employment.NoTravel from home to alternate work place (for work-related purposes) and return to normal work place (or directly home).YesTravel between normal work place and alternate place of employment (or place of business) and return (or directly home).YesTravel between two work places.YesTravel in course of employment: Note substantiation rules.YesTravel accompanied by relative (may be allowed if relative is also performing work-related duties).NoUnion and professional association feesYesVaccinationsNoUnion leveesNoWatch: Unless job specific such as a nurse’s job watch.No
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