Tax returns: Surprising deductions you can claim for five of the most popular professions in 2021
Accountants spill the little-known areas where people can claim deductions and get the most from their tax return.
As tax time creeps up, you want to start racking up those receipts to ensure you can claim those deductions.
The general rule is that if you incur an expense as part of your job and aren’t reimbursed by your employer, you can make a claim.
While most people would know the classic claims, be careful of standard deductions if you don’t have anything to support them, warned Greg Travers, head of tax, William Buck, such as the $300 of work-related expenses, $200 of small items and $150 of laundry costs.
“If you claim these, be ready to answer questions from the ATO on how your actually spent the money,” he said.
The Australian Taxation Office has flagged it’s on lookout for anyone trying to claim hefty working-from-home expenses, while also maintaining or increasing claims for things like car, travel or clothing expenses.
Yet even among these standard claims, there are little-known rules that people could use to their advantage.
Most people know that they are entitled to tax deductions for charitable donations, but it’s not common knowledge that you may have an option of spreading the donation deduction over five years via an election, revealed Davide Costanzo, chairman of the Moore Australia Tax Committee.
For five of the most popular Australian professions, there are a bunch of things you should be claiming, according to Mark Chapman, director of tax communications at H&R Block.
Here’s how to get the best bang for your bank in your tax return.
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Healthcare and social care
If you’re required to wear a uniform as part of your role, the cost is deductible, said Mr Chapman, but it doesn’t end there.
“You can also claim a deduction for the cost of clothing that you use at work to protect your ordinary clothes from soiling or damage, for example, laboratory coats and aprons,” he said.
“You can also claim the cost of COVID-19 protective equipment, such as hand sanitiser, antibacterial wash or face masks.”
Protective clothing, such as non-slip shoes, are also deductible.
If you were lucky to be able to attend a conference during the pandemic, there are a number of ways to cash in.
“As well as the cost of the conference itself, that can also include travel, meals and accommodation costs – even where the conference is overseas, though you might need to apportion the costs, and disallow the private bit, if you spent some downtime on the beach afterwards,” Mr Chapman said.
Professional subscriptions, whether it’s for a body like the Australian Medical Association or to a trade union, can be claimed.
If you’ve put in long hours and worked overtime, the good news is you can claim for the cost of buying meals provided you haven’t been paid an allowance by your employer.
For those people who get their work through an agency, the cost is also claimable.
“Many healthcare workers will need to use their own car as part of their job. That can include transporting patients, travelling between patient’s homes or travel from one medical facility to another; all such journeys are potentially claimable,” he added.
RELATED: Expenses ATO will target in Australians 2021 tax returns
Retail workers
Wearing a uniform can be murky one depending on the type of store you’re working in.
“If you wear conventional clothing, the cost isn’t deductible,” Mr Chapman said. “Some retail workers in fashion stores are required to wear clothing from the particular store or brand they are employed by; but those garments are still classed as conventional clothing, so no deduction is available.”
Work-related courses are counted as deductions and could include health and safety or first aid courses, management training or job-related courses such as a Certificate III in retail.
If you travel between stores, you can claim the cost of travel from one work location to another.
“That could include any time you spend temporarily working from a different store to your regular workplace – perhaps providing holiday cover – as well as trips between stores delivering stock,” he said.
Professional and admin workers
It’s not just a fashion statement, but a handbag or briefcase is claimable if you need it for work purposes, such as carrying paperwork or a laptop.
“Be careful though; the ATO may query whether a Gucci handbag is really required as part of your job,” Mr Chapman warned.
Don’t think your suits and other business wear is a deduction in general though; it’s much more specific for professionals.
“Clothing specific to the legal profession, such as the robes and wigs worn in court by barristers, are deductible,” he added, who can also claim their annual practising certificates and professional indemnity insurance.
If you travel as part of your work, you can claim the costs of your work-related journeys such as the cost of visiting clients or suppliers.
“If you use your own car, either claim 72 cents per kilometre up to a maximum 5000km or keep a logbook and claim your actual expenses,” he advised. “You can also claim for parking, tolls and public transport if you don’t use your car.”
Unfortunately, the cost of entertaining clients isn’t tax deductible.
“Sadly, you can’t claim the cost of club fees, such as the local golf or tennis club, even if you use your membership as a means of networking and meeting clients,” he noted.
Education and training workers
Annual teacher registration fees are a win for deductions, along with the costs of reference books or a professional library for the subject you teach.
“Prizes that you purchase to reward the achievements of your students and encourage future performance are claimable,” Mr Chapman added.
“Stationery, art materials, stopwatches and computer consumables including pens and toner cartridges are all deductible.”
Don’t forget that depreciation on technology costing more than $300, like computers, laptops, tablets, mobile phones and printers is deductible, as well as for items less than $300 which may be written off immediately.
Conferences and courses linked to your teaching can be claimed, including associated costs such as travel and textbooks, while your prep work is also a good thing to include.
“If you mark homework or prepare lessons whilst at home, you can claim home office expenses such as a proportion of internet costs and the associated costs of any technology you use such as computers and printers as well as a portion of utility bills,” he said.
“If you pay for school excursions, such as sporting or camping trips, out of your own pocket and aren’t reimbursed, the costs are claimable. This can include meals, transport and accommodation costs.”
Construction and manufacturing workers
The cost of any tools or other work-related equipment that you’re required to buy for your job are entitled to an immediate deduction for any tools costing up to $300.
“Anything more expensive than that needs to be depreciated over the life of the tool,” Mr Chapman said.
You can also claim a tax deduction for the cost of insuring tools and interest charged on finance taken out to buy tools and equipment, he added.
The good news for construction and manufacturing workers is you can deduct expenses for buying and maintaining your uniform if you’re required to wear one and it has the businesses logo on it.
“Ordinary items of clothing like a plain khaki shirt that you could wear at another job or outside work would not qualify,” he noted.
“A khaki shirt emblazoned with your employer’s name would qualify. The cost or protective items such as helmets, ear muffs safety goggles, sunglasses, sun hats and sunscreen can also be claimed.”
If you’re a member of the trade union, those fees can be claimed, while the cost of renewing any professional licences, registrations or subscriptions are claimable
“The cost of self-education courses run by a university or TAFE, such as an apprenticeship course at a technical college, provided the course relates to your current job are deductible,” he said.
You can also claim for overtime meal expenses up to the amount actually spent where you are entitled to an allowance under an industrial law, award or agreement.
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