Guards and security employees – income and work-related deductions
If you earn your income as a guard or security employee, 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.
Find out about guards and security employees':
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 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
|
Aviation allowance
|
No
These allowances don't help you pay for deductible work-related expenses
|
Compensation for industry peculiarities
|
Broken shift allowance
|
No
These allowances don't help you pay for deductible work-related expenses
|
An amount for certain expenses
|
Torch 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
Mark is an employee security guard. Each week, Mark works several shifts as a guard at the airport. Mark's employer pays him an aviation allowance for each hour he works at the airport.
At the end of the income year, the allowance is reported on his income statement.
Mark must include the amount of the allowance in his tax return but he can't claim a deduction for any expenses against the allowance. The allowance compensates Mark for his special additional duties. It is not to cover any expenses he might incur.
End of example
Example: allowance assessable, deduction allowable.
Ronaldo is a security guard in an office building. Ronaldo must wear a compulsory uniform in the form of a white shirt with the company's logo on it, black trousers and black shoes. His employer doesn't provide the uniform so Ronaldo buys several shirts and pants, along with a black pair of shoes. Ronaldo's employer pays him a uniform allowance which is shown on his income statement.
Ronaldo must declare the uniform allowance as income in his tax return.
Ronaldo can claim a deduction for cost of his uniform shirts. However, Ronaldo can't claim a deduction for the black pants and shoes he buys. These items are conventional and the expenses is private even though Ronaldo only wears the items to work.
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 shown 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 is not 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 them.
Example: cost of buying uniform reimbursed
Jim is an employee security guard. Jim's employer requires him to wear a uniform when he is on duty. When Jim's uniform shirt gets torn, he buys a new one.
Jim requests a reimbursement for the cost of the shirt from his employer, which is subsequently paid.
Jim can't claim a deduction for the cost of his uniform shirt and he doesn't have to include the amount of the reimbursement as income in his tax return.
End of exampleFind out about guards and security employees':