Tradesperson expenses A–F

Award transport payments (fares allowance)

An award transport payment (fares allowance) is a payment made to you under an award that was in force on 29 October 1986. You might receive an award transport payment (fares allowance) from your employer to cover transport or car expenses. You must include these allowances as assessable income in your tax return.

You can claim a deduction for expenses covered by award transport payments, if the expenses are for work-related travel, and you have actually spent the money.

You don't need to keep written evidence or travel records if you meet all of the following conditions:

• you are paid an award transport payment
• you incur deductible transport expenses that are covered by the award transport payment
• the total of the transport expenses you claim as a deduction is less than the amount payable under the award on 29 October 1986 (the 'award amount'). Your employer or union can tell you the award amount.

However, you will need to be able to show how you work out you claim if we request this information.

This exception from keeping written evidence doesn't give rise to an automatic deduction. You're still required to incur a deductible expense relating to the transport the payment covers.

If you want to claim a deduction that is more than the award amount on 29 October 1986, you'll need written evidence and travel records (where necessary) for your whole claim.

 

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 are considered to 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 first job as an electrician to your second job as a TAFE teacher
• to and from an alternative workplace for the same employer on the same day – for example, driving between separate work sites for your employer
• from home directly to an alternative workplace – for example, travelling from home to meet a client at their premises which is not your regular work location.

To claim a deduction, you must keep records of your car use. You must choose between the logbook method or the 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 all 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.

If 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 calculate your work-related use of the 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, jeans and drill shirts worn by tradespeople or apprentices.

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 and functions to protect you from specific risks of injury or illness at work. For example, steel-capped boots, fire-resistant clothing, or overalls that protect conventional clothing. 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. Tradespeople don't wear occupation-specific clothing.
• a compulsory uniform – clothing 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.

You can claim a deduction for additional costs you incur to get a special licence or condition on your licence to perform your work duties. For example, the cost you incur to get a heavy vehicle permit.

You can't claim a deduction if your employer pays for or reimburses you for the cost to obtain a special license or condition.

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 speeding on your way to work.

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 tradesperson expenses, see:

• Tradesperson expenses G–O
• Tradesperson expenses P–S
• Tradesperson expenses T–W