This year we will be reviewing claims for work-related expenses claimed by taxpayers working in various occupations, including mechanical, automotive and electrical trades. We have provided the information below to help you claim what you may be entitled to.
Home to work travel is only deductible in limited circumstances. Examples include where you:
- had to carry bulky equipment (heavy tools or machinery) that you used for work and could not leave at work, and
- are engaged in itinerant work.
Work-related expenses incurred in driving between work sites, making deliveries, undertaking client visits or site inspections, and driving errands while on duty (but not minor errands between home and work) are an allowable deduction.
Special rules apply in relation to the travel records that you need to keep to substantiate your travel expenses.
If you are making a claim for travel expenses and you are away from home for six or more nights in a row, you need to keep a travel record unless:
- you received a travel allowance
- the claim is for travel in Australia, and
- the claim does not exceed the reasonable allowance amount.
Your travel record must show the dates, places, times, duration and nature of the work activities that you have undertaken. You may still be asked to show that the expenses claimed were actually incurred.
You are entitled to a deduction for the costs of acquiring protective clothing, and compulsory or registered uniforms required for your employment. Laundry expenses relating to such uniforms are deductible, but you may need receipts if your claim exceeds $150.
You cannot claim a deduction for conventional clothing such as jeans, tracksuits, shorts, T-shirts and sports shoes. Additionally, you cannot claim a deduction for the cost of laundering or dry cleaning of your conventional clothing.
You can claim a deduction for the cost of purchasing tools or equipment (if under $300) which you use for your work. If they cost more than $300, you must depreciate the asset(s) via the decline in value process.
You must also depreciate an item that costs less than $300 if it forms part of a set or kit which is worth more than $300. For example, if Paul replaces one spanner worth $150 in a set worth $600, he will deduct the $150 over the life of the asset rather than in one income year. The publication has more information.
Union fees and professional association memberships are deductible. However, worker entitlement fund contributions (for example, welfare fund contributions) and similar charges are generally not deductible.
You can claim a deduction for overtime meal expenses you incurred if you received an overtime meal allowance from your employer which was paid under an industrial award, law or agreement. Where you receive an overtime meal allowance that is not shown on your payment summary, you do not have to return the allowance as assessable income unless:
- you have not fully expended the allowance, or
- you have spent more than the allowance and want to claim the amount spent, in which case you may be asked to explain how you worked out the amount claimed.
An amount for overtime meals that has been ‘folded in’ (for example, under a workplace agreement) as part of your normal salary or wages income, is not considered to be an overtime meal allowance.
You cannot claim a deduction for self-education expenses if the study is to enable you to get employment, to obtain new employment, to open up a new income-earning activity, or related to industry placement employment (that is, employment performed as an incident of study).
You need to ensure that there is sufficient connection between these expenses and your work activities at the time the expenses were incurred.
For example, David is studying mechanical engineering at TAFE. After his first year, he takes a part-time job in a machine plant. David’s TAFE expenses are not allowable, as he incurred them in order to gain new employment. This restriction does not apply to apprentices – apprentices’ self-education expenses are generally allowable.
Although there is no specific taxation ruling for your occupation, the principles in Taxation Rulings TR 95/12 Income tax: employee factory workers –allowances, reimbursements and work-related deductions, and TR 95/22 Income tax: employee building workers – allowances, reimbursements and work-related deductions are relevant to your occupation.
For information on the records you need to keep for your work-related expenses, read Keeping work-related expense records
The following documents contain more information about particular types of work-related expenses:
If you are uncertain about how this information applies to your personal situation, phone us on 13 28 61.
Last Modified: Tuesday, 30 June 2009
Subscribe
