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 transport expenses you incur to travel between home and your regular place of 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 adult industry worker.
You can only claim a deduction for the work-related use of the item.
If a tool or item of equipment cost you $300 or less, you can claim a deduction for the full amount in the year you buy it if:
- you use it mainly to produce non-business assessable income
- it's not part of a set that together cost more than $300
- it's not identical, or substantially identical to, other items 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
- is identical, or substantially identical to, other items 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 also need to apportion your deduction if you use the item for private purposes. To work out your deduction use the Depreciation and capital allowances tool.
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 a third party supplies for use.
Example: cost of tools and equipment $300 or less
Esther is employed by an agency as a roaming performer at expos, festivals and parties. She buys unique props ($150) and costumes ($100) that she uses in her performances. Esther only uses these costumes and props at work.
Ester can claim an immediate deduction for the expenses she incurs for the equipment as:
- the equipment cost less than $300 and doesn't form part of a set
- she requires the equipment to perform her work-related duties
- she only uses these items at work.
Travel expenses
You can claim a deduction for travel 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. For example, if you're required to travel interstate for 3 nights to attend a work-related conference, seminar or training course.
You can't claim a deduction for travel expenses where you don’t incur any expenses, because you either:
- sleep 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 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 (the reasonable amount the amount we set each year for determining whether an exception from keeping written evidence applies for accommodation, meal and incidental expenses which are covered by a travel allowance)
- you spent the whole amount on deductible accommodation, meal and incidental expenses, if applicable.
You must keep written evidence (such as receipts) for all your overseas accommodation expenses regardless of whether you receive an allowance. You don't need to keep written evidence for other travel expensesif both of the following apply:
- you received a travel allowance from your employer for the expenses
- your deduction is less than the Commissioner's reasonable amount.
If your deduction is for more than the Commissioner's reasonable amount you need to keep written evidence for all your travel expenses, not just the amount over the Commissioner's reasonable amount.
Even if you're 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: travel expenses before employment
Brett travels from regional Victoria to Melbourne to audition for a role. He pays for his travel, accommodation and meals to attend the audition.
Brett can't claim a deduction as the expenses are incurred to get a job.
End of example
Example: less than reasonable amount incurred
Veronique is employed as a burlesque dancer to perform in the major capital cities in her employer's latest production. Veronique's employer pays for all the airfares and accommodation expenses.
Veronique receives an allowance for meals and incidentals of $375 per week while she is on tour. The total allowance of $8,250 for the 22 weeks of the tour is shown on her income statement. Veronique spends less than the reasonable amount for meals and incidentals per day.
Veronique must declare the allowance as income in her tax return because it is on her income statement.
Veronique can claim a deduction for the amount she spent on meals and incidental expenses. She isn't required to get and keep receipts for the expenses because the amount she spent is less than the relevant reasonable amounts. However, if asked, she would still be required to show how she calculated her claim and that she had spent money on meals and incidentals.
Veronique can’t claim a deduction for airfares or accommodation because her employer pays for them.
End of exampleFor more information, see TD 2024/3 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2024–25 income year?
Union and professional association fees
You can claim a deduction for union and professional association fees you pay. If your fees are deducted from your wages and your employer shows the deduction on your income statement or payment summary, you can use that as evidence of the amount you pay.
For more adult industry worker expenses, see: