EOFY checklist for employment-related tax deductions
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.
| Tax deductible? | |
| Admission fees: For lawyers and other professionals. Disallowed as capital cost. | No |
| Airport lounge membership: Deductions to the extent used for work-related purposes. | Yes |
| Annual practising certificate: Applies to professional persons and other contractors who must pay an annual fee to practice in their chosen field. | Yes |
| Bank charges: Deductions are allowed if account earns interest. Not private transaction fees. | Yes |
| Bribes 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. | No |
| Briefcase: 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. | Yes |
| Calculators 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. | Yes |
| Car: See Travel. | |
| Child care fees | No |
| Cleaning: Of protective clothing and uniforms. | Yes |
| Clothing, uniforms and footwear | Yes |
| Compulsory 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 fees | No |
| Coaching classes: Allowed to performing artists to maintain existing skills or obtain related skills. | Yes |
| Computers 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) | Yes |
| Conferences, seminars and training courses: Allowed if designed to maintain or increase employee’s knowledge, skills or ability. | Yes |
| Conventional clothing | No |
| Depreciation: 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. | Yes |
| Driver’s licence: Cost of acquiring and renewing. | No |
| Dry cleaning: Allowed if the cost of the clothing is also deductible. | Yes |
| Election expenses of candidates: No limit for Federal, State and Territory. | Yes |
| Limit of $1,000 for local government. | |
| Employment agreements: Existing employer (see TR 2000/5). | Yes |
| Not available for new business/employer. | |
| Fines: Imposed by court, or under law of Commonwealth, State, Territory or foreign country (s26-5). | No |
| First Aid course: Provided it is directly related to employment or business activities. | Yes |
| Gaming licence: Hospitality and gaming industry. | Yes |
| Gifts of $2 or more: If made to approved “deductible gift recipient” body or fund. | Yes |
| See 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”. | No |
| Glasses and goggles: Protective only. | Yes |
| Grooming | No |
| HELP/HECS repayments | No |
| Home office expenses: Utility expenses (for example, heat, light, power and depreciation on depreciating assets). | |
| Occupancy expenses: For example, rent, insurance, rates and land tax. | Yes |
| Deductible only to the extent that home or study is used for income-producing purposes. | |
| Income continuance insurance: Allowed only if the proceeds are assessable. | Yes |
| Insurance – sickness or accident: When benefits would be assessable income. | Yes |
| Interest: 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. | Yes |
| Fines 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). | Yes |
| Laundry 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. | Yes |
| Legal expenses: Renewal of existing employment contract. | Yes |
| Meals | |
| Eaten during normal working day. | No |
| Meals acquired when travelling overnight for work-related purpose. | Yes |
| Meals when travelling (not overnight). | No |
| Overtime meals: If allowance received under award. | Yes |
| Medical examination: Only if from the referral of a work-related business licence. | Yes |
| Motor vehicle expenses: See Travel expenses. | |
| Newspapers: Claims may be allowed in limited cases if the publication is directly related to income-producing activities. | No |
| Overtime meal expenses: Only if award overtime meal allowance received. | Yes |
| Parking fees and tolls: Includes bridge and road tolls (but not fines) paid while travelling for work-related purposes. | Yes |
| Photographs (performing arts – with income producing purpose) | |
| Cost of maintaining portfolio. | Yes |
| Cost of preparing portfolio. | No |
| Practising certificate: Applies to professional employees. | Yes |
| Prepaid expenditure for tax shelter arrangements: They must be spread over the period in which the services are provided. | Yes |
| Prepaid expenses: Non-business individuals and SBE taxpayers claim is fully deductible if services are to be performed in period not exceeding 12 months. | Yes |
| All 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. | Yes |
| Professional library (books, CDs, videos etc) Established library (depreciation allowed) | Yes |
| New books: Full claim if cost $300 or less (includes a set if total cost is $300 or less). | Yes |
| New books: Depreciation if cost over $300 (includes a set if total cost is more than $300). | Yes |
| Protective 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. | Yes |
| Removal and relocation costs If paid by the employer, may be exempt from FBT, but deductible. | No |
| Repairs (income producing property/or work-related equipment). | Yes |
| Self-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. | Yes |
| No 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. | Yes |
| Social functions | No |
| Stationery (diaries, log books etc.) | Yes |
| Subscriptions | |
| Publications If a direct connection between publication and income earned by taxpayer. | Yes |
| Sports clubs. | No |
| Sun protection Claims for sunglasses, hats and sunscreen allowed for taxpayers who work outside. | Yes |
| Superannuation 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. | Yes |
| Tax agent fees (deduction can be claimed in the income year the expense is incurred). | Yes |
| Travel 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 publications | Yes |
| Telephones and other telecommunications equipment (including mobiles, pagers and beepers.) Cost of telephone calls (related to work purposes). | Yes |
| Installation or connection. | No |
| Rental charges (if “on call” or required to use on regular basis). | Yes |
| Silent telephone number. | No |
| Tools (work related only) If cost is $300 or less. | Yes |
| If cost more than $300, the amount would be depreciable, and the amount deductible equals to the decline in value). | Yes |
| Trauma insurance If benefits capital in nature. | No |
| Travel expenses Including public transport, motor vehicles and motor cycles, fares, accommodation, meals and incidentals. | |
| Travel between home and work. | No |
| Where employee has no usual place of employment (eg travelling salesperson). | Yes |
| If “on call”. | No |
| If actually working before leaving home (eg doctor giving instructions over phone from home. Note that this applies in limited circumstances only). | Yes |
| Must transport bulky equipment (eg builder with bulky tools). | Yes |
| Travel from home (which is a place of business) to usual place of employment. | No |
| Travel from home to alternate work place (for work-related purposes) and return to normal work place (or directly home). | Yes |
| Travel between normal work place and alternate place of employment (or place of business) and return (or directly home). | Yes |
| Travel between two work places. | Yes |
| Travel in course of employment: Note substantiation rules. | Yes |
| Travel accompanied by relative (may be allowed if relative is also performing work-related duties). | No |
| Union and professional association fees | Yes |
| Vaccinations | No |
| Union levees | No |
| Watch: Unless job specific such as a nurse’s job watch. | No |
