Show download pdf controls
  • Common expenses T–W

    Details on claiming common hairdresser or beauty professional expenses for:

    Taxi, ride-share, public transport and car hire

    You can claim a deduction for transport costs if you travel in the course of performing your work. For example, taking a taxi from your regular workplace to another work location.

    You can’t claim a deduction for travel expenses between home and work, these are private expenses.

    You can't claim a deduction if your employer reimburses you for these expenses.

    Tools and equipment

    You can claim a deduction for tools and equipment you use to perform your duties as an employee hairdresser or beauty professional. For example, scissors, electric clippers, combs, curlers and razors.

    You can only claim a deduction for the work-related use of the item.

    If the tool or equipment cost you $300 or less, you can claim for the full amount in the year you buy it if:

    • you use it mainly for work purposes
    • it's not part of a set that together cost more than $300.

    You can claim a deduction for the cost over the life of the item (that is, decline in value), if the tool or equipment:

    • cost more than $300
    • is part of a set that together cost more than $300.

    If you bought the tool or item of equipment part way through the year, you can only claim a deduction for the decline in value for the period of the income year that you own it. .

    You can also claim a deduction for the cost of repairs to tools and equipment that you use for work purposes.

    You can't claim a deduction for tools and equipment that your employer or third party supplies for use.

    Example: deduction for tools and equipment less than $300

    Hilary is employed as a hairdresser. She buys a new set of hairdressing scissors for $100 and was not reimbursed by her employer. Hilary only uses these scissors at work and does not use them for a private purpose.

    Hilary can claim an immediate deduction of $100 for the scissors in the income year which she purchases it as:

    • the scissors cost less than $300
    • she uses the scissors only for work purposes
    • the scissors are not part of a set that together cost more than $300.
    End of example

     

    Example: deduction for tools and equipment over $300

    During the year, Jeff also buys a hair dryer worth $500 which he only uses for work purposes.

    As the hairdryer cost more than $300, Jeff can claim a deduction for the decline in value over the life of the hairdryer. However, as Jeff buys the hairdryer part way through the year, he can only claim a deduction for the period he owns the hairdryer.

    End of example

    See also:

    Travel expenses

    You can claim a deduction for expenses you incur when your work requires you to both:

    • travel for work
    • sleep away from your home overnight in the course of performing your employment duties.

    Expenses you can claim include your accommodation, meals and expenses which are incidental to the travel (incidentals). For example, when you travel interstate to attend a conference, seminar or training course.

    You can't claim a deduction for travel expenses where you don't incur any expenses, because:

    • you slept in accommodation your employer provides
    • you eat meals your employer provides
    • your employer or a third party reimburses you for any costs you incur.

    Receiving an allowance from your employer doesn't automatically mean you can claim a deduction. In all cases, you must be able to show:

    • you were away overnight
    • you spent the money
    • the travel directly relates to earning your employment income
    • how you work out your claim.

    If you receive a travel allowance you must include it as assessable income in your tax return unless all of the following apply:

    • the travel allowance is not on your income statement or payment summary
    • the travel allowance doesn't exceed the Commissioner's reasonable amount
    • you spent the whole allowance on deductible accommodation, meal and incidental expenses (if applicable).

    You don’t have to keep written evidence such as receipts if both of the following apply:

    • you receive a travel allowance from your employer for the expenses
    • your deduction is less than the Commissioner’s reasonable amount.

    If you claim a deduction for more than the Commissioner’s reasonable amount you need to keep receipts for all expenses, not just for the amount over the Commissioner’s reasonable amount.

    Even if you are not required to keep written evidence such as receipts, you must be able to explain your claim and show you spent the amounts. For example, show your work diary, that you received and correctly declared your travel allowance and bank statements.

    Example: reasonable travel allowance

    Cindy is an employee hairdresser who specialises in bridal hair. She is required to travel from Sydney to Melbourne for five nights. Her employer pays her a travel allowance of $110 per night for accommodation, meals and incidental expenses. The allowance isn't shown on her income statement.

    The travel allowance amount paid to Cindy is less than the reasonable allowance amount. Cindy spends all of the travel allowance on her travel expenses.

    She chooses not to include her allowance on her tax return because:

    • it's less than the reasonable allowance amount
    • it's not shown on her income statement
    • she spends it all to cover her travel expenses.

    This means Cindy can't claim a deduction for her travel expenses on her tax return.

    End of example

    See also:

    • Travel expenses
    • TD 2020/5 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2020-21 income year?

    Union and professional association fees

    You can claim a deduction for union and professional association fees you pay. You can use your income statement as evidence of the amount you pay if it's shown on there.

    See also:

    For more hairdresser and beauty professional expenses, see:

    Find out about employee hairdressers and beauty professionals':

      Last modified: 19 Feb 2021QC 51239