Community support workers and direct carers – income and work-related deductions
If you earn your income as employee community support worker or direct carer, this guide will help you work out what:
- income and allowances to report
- you can and can't claim as a work-related deduction
- records you need to keep.
When we say 'direct carer', we mean an employee that provides hands-on care to people when they are elderly, ill or disabled. You may provide home-based care (in clients' homes) and community based care (assisted living facilities).
This information doesn't apply if you're a participant or nominated representative under the National Disability Insurance Scheme (NDIS). Payments you receive are tax free. You can't claim for expenses you incur or for assets paid for by the scheme.
Find out about community support workers and direct carers':
Income – salary and allowances
Include all the income you receive during the income year in your tax return, this includes:
Don't include reimbursements.
Your income statement or a payment summary will show all your salary, wages and allowances for the income year.
Salary and wages
You must include your salary and wages as income in your tax return. Include any bonuses.
Allowances
Include all allowances shown on your income statement or payment summary as income in your tax return.
While all allowances you receive from your employer are income, you can't always claim a deduction if you receive an allowance – it depends on the situation.
If you can claim a deduction, the amount of the deduction is not usually the same amount as the allowance you receive.
Allowance types, reasons and deductibility
Reason for allowance
|
Example of allowance type
|
Deduction (Yes or No)
|
Compensation for an aspect of your work that is unpleasant, special or dangerous
|
Heat allowance
|
No
These allowances don't help you pay for deductible work-related expenses
|
Compensation for industry peculiarities
|
On call allowance
|
No
These allowances don't help you pay for deductible work-related expenses
|
An amount for certain expenses
|
Telephone allowance
|
Yes
If you incur deductible expenses
|
An amount for special skills
|
A first aid certificate
|
Yes
If you incur deductible expenses
|
Example: allowance assessable, no deduction
Bill works at an aged care home. Bill generally works from Monday to Friday each week but is also on call on the third weekend of every month. Even if he isn't called in when he is on call, Bill receives an allowance from his employer. At the end of the income year, the total allowance is shown on his payment summary.
Bill must declare the allowance as income in his tax return.
Bill can't claim a deduction as he doesn't incur any deductible expenses. The allowance compensates Bill for having to be ready to go into work over the period he is on call. The allowance isn't to help pay for work-related expenses.
End of example
Example: allowance assessable, deduction allowed
Beth works as a community support worker and is required to wear a compulsory uniform. Beth's employer pays her a uniform allowance of $265 which is shown on her income statement at the end of the 2021–22 income year. During the 2021–22 income year, Beth spent $290 for her compulsory uniform.
In her 2021–22 tax return, Beth:
- must include the uniform allowance of $265 as income
- can claim a deduction of $290.
End of exampleDifference between allowances and reimbursements
An allowance does not include a reimbursement.
If your employer pays you:
- an amount based on an estimate of what you might spend, such as paying cents per kilometre if you use your car for work, then it's an allowance
for the actual amount of the expense (either before or after you incur the expense), such as paying for the petrol you use if you use your car for work, it's a reimbursement.
Allowances not on your income statement or payment summary
Your employer may not include some allowances on your income statement or payment summary. This can apply to travel allowances and overtime meal allowances paid under an industrial law, award or agreement. You can see these allowances on your payslips.
If the allowance isn't on your income statement or payment summary, and you:
- spent the whole amount on deductible expenses, you
- don't include it as income in your tax return
- can't claim any deductions for these expenses
- spent more than your allowance, you
- include the allowance as income in your tax return
- can claim a deduction for your expense, if you're eligible.
Reimbursements
If your employer pays you the exact amount for expenses you incur (either before or after you incur them), the payment is a reimbursement. We don't consider a reimbursement to be an allowance.
If your employer reimburses you for expenses you incur:
- don't include the reimbursement as income in your tax return
- you can't claim a deduction for the expenses.
Find out about community support workers and direct carers':