Office worker expenses A–F

Annual practicing certificates, professional memberships and accreditations

You can claim a deduction for the cost of renewing your annual practicing certificate, professional membership or accreditation if you need it to work in your field. For example, if you're an accountant you can claim a deduction for your annual membership to CPA Australia.

You can't claim a deduction for the cost of getting your initial practicing certificate, professional membership or accreditation if you're required to have it before you are employed. In these circumstances, the expenses don't directly relate to earning your assessable income. The are incurred to enable you to start your employment.

Books, periodicals and digital information services

You can claim a deduction for books, periodicals and digital information services if the content is sufficiently connected to your employment. For example, tax agents can claim an online subscription to daily or weekly tax updates.

Depending on the cost of the book, you may be able to claim a deduction in the income year you buy it or for its decline in value over the effective life of the item.

 

 

Car expenses

You can't claim a car expenses deduction for normal trips between your home and regular place of work. These are private expenses, even if you:

• live a long way from your usual or regular workplace
• must work outside normal business hours (for example, weekend or early morning shifts).

 

 

In limited circumstances, you can claim the cost of trips between home and work, such as where you carry bulky tools or equipment for work or where you had shifting places of employment.

To be able to claim a deduction for the cost of trips between home and work while carrying bulky tools or equipment, all the following conditions must be met:

• the tools or equipment are essential to perform your employment duties
• the tools or equipment are bulky, meaning that
  • because of the size and weight, they are awkward to transport
  • they can only be transported conveniently using a motor vehicle
• there is no secure storage for such items at the workplace.

It will not be sufficient if you transport the tools or equipment merely as a matter of choice. For example, if your employer provides secure storage, your decision to transport items home will be a matter of choice.

You have shifting places of employment where you have no fixed place of work and you continually travel from one work site to another before returning home.

You can also claim a deduction for the cost of using your car when you drive:

• directly between separate jobs on the same day (provided neither of the workplaces is your home) – for example, travelling from your office job to your second job as a musician
• to and from an alternative workplace for the same employer on the same day – for example, travelling from your usual office to a one of your employer's other offices to attend a meeting
• from home directly to an alternative workplace – for example, travelling from home to meet a client at their business premises which is not your regular work location.

 

 

 

To claim a deduction, you must keep records of your car use. You can choose between the logbook method or cents per kilometre method to work out your deduction if you:

• own the car
• lease the car (directly from the finance company)
• hire the car under a purchase agreement (with the car dealership or a finance company).

You don't own, lease or hire a car you use under a salary sacrifice or novated lease arrangement. This is because it's usually your employer leasing the car from the financing company and making it available for your use. You can't claim a deduction for car expenses but you can claim additional work-related expenses you incur that are associated with your work use of the car such as parking and tolls.

If you use the logbook method, you need to keep a valid logbook to help you work out the percentage of work-related use along with written evidence of your car expenses.

If you use the cents per kilometre method, you can claim a set rate for each work-related kilometre travelled. The maximum number of kilometres you can claim under this method is 5,000. You must be able to show how you work out your kilometres and that they were work-related.

To claim a deduction in your tax return, include the amount of your claim at Work-related car expenses. The Work-related car expenses calculator can help you work out the amount you can claim as a deduction.

When you claim a deduction for your work-related car expenses using one of the above methods, you can’t claim any further deductions in the same tax return for the same car. For example, petrol, servicing, decline in value or insurance costs.

You can’t use the cents per kilometre or logbook methods to work out your claim for a:

• motorcycle or similar vehicle
• vehicle with a carrying capacity of one tonne or more (such as a ute)
• vehicle that can transport 9 passengers (including the driver) or more (such as a minibus).

For these vehicles, you can claim the actual expenses you incur for your work-related travel. This includes costs such as fuel, oil, insurance, and loan interest along with the decline in value of the vehicle. You must keep receipts for all your expenses and records to show your work-related use of the vehicle. Although you aren't required to keep a logbook, it is the easiest way to show your work-related use of your vehicle.

To claim a deduction for actual expenses you incur for a vehicle not defined as a car, include the amount at Work-related travel expenses.

 

 

Child care, school fees and other education expenses

You can't claim a deduction for the cost of child care (including school holidays and before and after school care) when you're working. It's a private expense, and the expenses have no direct connection to earning your income.

You can't claim a deduction for the cost of educating your children (or any other students) including school fees, university fees and TAFE fees. You also can't claim other expenses you incur for your children's education, for example, the decline in value of iPads, laptops or desks, calculators, notebooks and pens. These are private expenses that are not connected with earning your employment income.

Clothing and uniform expenses (including footwear)

With a few exceptions, clothing can't be deducted as a work-related expense.

You can't claim conventional clothing (including footwear) as a work-related expense, even if your employer requires you to wear it and you only wear these items of clothing at work.

'Conventional clothing' is everyday clothing worn by people regardless of their occupation – for example, business attire worn by office workers.

You can claim a deduction for costs you incur to buy, hire, repair or replace clothing, uniforms and footwear you wear at work if it's in one of the following categories:

• protective clothing – clothing with protective features or functions that you wear to protect you from specific risks of injury or illness at work. For example, cleaning aprons, non-slip shoes or smocks worn to stop you coming into contact with harmful substances. Conventional clothes you wear at work are not regarded as protective clothing if they lack protective qualities designed for the risks of your work. This includes jeans, drill shirts, shorts, trousers, socks, closed shoes.
• occupation-specific – clothing that distinctly identifies you as a person with a particular profession, trade or occupation. For example, a judge's robes or a chef's chequered pants. Items traditionally worn in a profession are not occupation-specific where the clothing is worn by multiple professions, for example, a business suit doesn't identify you as belonging to a particular profession.
• a compulsory uniform – that your employer strictly and consistently enforces you wear by workplace agreement or policy and distinctly identifies either
  • you as an employee working for a particular employer
  • the products or services your employer provides
• a non-compulsory uniform – a uniform that is not compulsory to wear and that your employer registers on the Register of Approved Occupational Clothing.

You can't claim a deduction if your employer buys, repairs or replaces your clothing, footwear or protective clothing.

 

Drivers licence

You can't claim a deduction for the cost to get or renew your drivers licence, even if you must have it as a condition of employment. This is a private expense.

Entertainment and social functions

You can't claim a deduction for the cost of any entertainment, fundraising or social functions. This applies even if they are compulsory or you discuss work matters at the event. Entertainment and social functions include the cost of:

• work breakfasts, lunches or dinners
• attendance at sporting events
• gala or social nights
• concerts or dances
• cocktail parties
• other similar types of functions or events.

These are private expenses because these events do not have a direct connection to your income-producing activities.

You also can’t claim the cost of travelling to and from functions.

Fines and penalties

You can't claim a deduction for any fines or penalties whether they are incurred in connection with work, or for any other reason. Fines may include parking and speeding fines or penalties. For example, a fine you receive for parking illegally outside your workplace.

 

First aid courses

You can claim a deduction for the cost of first aid training courses if you are both:

• a designated first aid person
• need to complete a first aid training course to assist in emergency work situations.

You can’t claim a deduction if your employer pays for or reimburses you for the cost of the course.

For more office workers expenses, see:

• Office worker expenses G–O
• Office worker expenses P–S
• Office worker expenses T–W