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Adult industry expenses P–S

Last updated 5 June 2023

Parking fees and tolls

You can't claim a deduction for parking at or near a regular place of work. You also can't claim a deduction for tolls you incur for trips between your home and work. These are a private expense.

You can claim a deduction for parking fees and tolls you incur on work-related trips.

Example: deduction for parking fees and tolls

Marnie is an employee exotic dancer. At the start of each shift, Marnie is provided with a list of clients to visit and their addresses. Marnie uses her own car to travel from home to each of the clients on her list.

On some occasions, Marnie pays for parking near the venue the client has engages her to dance at. When travelling between her clients during her shift, Marnie also incurs tolls occasionally.

Marnie can claim a deduction for the parking fees and tolls she incurs when she is travelling between client visits on her shift.

End of example

 

Example: no deduction for parking fees

Bob drives his own car to work each day and parks in the secure parking centre next to the adult entertainment club he works at.

Bob can't claim the cost of parking at his regular place of work.

End of example

Phone, data and internet expenses

You can claim a deduction for phone, data and internet costs if you use your own phone or electronic devices for work purposes.

If your phone, data and internet use for work is incidental and you're not claiming more than $50 in total, you don't need to keep records.

If you claim more than $50, you need to keep records to show your work use. For example, an itemised bill where you can identify your work-related phone calls and data use.

You can’t claim a deduction if your employer:

  • provides you with a phone for work and pays for your usage
  • reimburses you for the costs you incur.

You can’t claim a deduction for any phone calls to family and friends, even while travelling for work. This is because these are personal phone calls.

If all or part of your work-related phone, data and internet expenses are incurred as a result of working from home and you use the revised fixed rate method to claim your working from home deductions, you can't claim a separate deduction for these expenses.

For more information, see:

Example: calculating phone expenses

Adele uses her mobile phone to contact her manager and clients while she is working. Adele is on a set plan of $49 a month and never exceeds the plan cap.

She receives an itemised account from her phone provider each month that includes details of her individual phone calls.

At least once a year, Adele prints out her account and highlights her work-related phone calls. She makes notes on her account for the first month about who she is phoning for work. For example, her manager and her clients.

Out of the 300 phone calls she has made in a 4-week period, Adele works out that 150 (50%) of the individual phone expenses billed to her are for work and applies that percentage to her cap amount of $49 a month.

Since Adele was only at work for 46 weeks of the year (10.6 months), she calculates her work-related mobile phone expense deduction as follows:

Total work calls ÷ total number of phone calls = work use percentage for phone calls 150 ÷ 300 = 0.50 (that is 50%)

Adele can claim 50% of the total bill of $49 for each month for work purposes ($49 × 0.50 = $24.50)

Adele's total expense for work-related phone calls is:

10.6 months × $24.50 = $259.70

End of example

 

Example: work and private use

Sylvanna uses her computer and personal internet account at home to access her work emails, client details and manage her appointments. Sylvanna uses her computer and the internet for work and private purposes.

Sylvanna's internet use diary showed 40% of the time she spent using the internet was for work-related activities and 60% was for private use. As her internet service provider charge for the year was $1,200, she can claim:

$1,200 × 0.40 = $480 as work-related internet use.

If there was anyone else that accessed the internet connection, Sylvanna must reduce her claim to account for their use

End of example

Photographs

You can claim a deduction for the cost of maintaining a photographic portfolio for publicity purposes. You can't claim a deduction for the initial cost of preparing the portfolio.

Example: portfolio for work purposes

Sunita is an employee of an escort agency. Sunita decides to update her photographic portfolio because others who have done so using a particular photographer, now have more appointments.

Sunita pays the photographer $650 for a photo shoot and for a copy of the updated photos to include in her portfolio.

Sunita can claim a deduction of $650 for the cost of updating her photographic portfolio.

End of example

Removal and relocation expenses

You can’t claim a deduction for the cost to transfer or relocate to a new work location. This is the case whether the move is a condition of your existing job or you are taking up a new job.

Repairs to tools and equipment

You can claim a deduction for repairs to tools and equipment you use for work. If you also use them for private purposes, you can only claim an amount for your work-related use.

Self-education expenses

You can claim a deduction for self-education expenses if they directly relate to your employment as an employee in the adult industry and at the time of the expense it:

  • maintains or improves the skills and knowledge you need for your current duties
  • results in or is likely to result in an increase in your income from your current employment.

You can't claim a deduction for a self-education expense if at the time you incur the expense, it:

  • doesn't have a connection with your current employment
  • only relates in a general way to your current employment or profession
  • enables you to get employment or change employment.

If your self-education expenses are deductible, you can claim expenses such as course or tuition fees, travel expenses (for example, attending a lecture interstate), transport costs, books and equipment. You will also be able to claim a deduction for the decline in value of any depreciating assets which cost more than $300 that you use for your work-related study.

You can't claim a deduction for the repayments you make on your study or training support loan. Study and training support loans include:

  • Higher Education Loan Program (HELP) (FEE-HELP and HECS-HELP)
  • VET Student Loans (VETSL)
  • Trade Support Loan Program (TSL)
  • Student Financial Supplement Scheme (SFSS)
  • Student Start-up Loan (SSL).

While course or tuition fees may be deductible, fees you incur under the Higher Education Contribution Scheme Higher Education Loan Program (HECS-HELP) scheme are not deductible.

Example: course related to current employment

Dan produces and directs adult movies. He decides to enrol in an advanced diploma of screen and media (film and television). The course covers production techniques and processes, directing techniques and processing and advanced editing, post-production and visual effects.

Dan pays for his course fees, reference books and other materials.

Dan can claim a deduction for the self-education expenses he incurs. The course will maintain and improve the knowledge and skills he requires to do his job.

End of example

 

Example: course to change employment

Allanah is a burlesque dancer. Due to some injuries and long working hours, Allanah no longer wants to be a full-time dancer. Allanah wants to become a lawyer so she is studying a Bachelor of Laws degree part-time.

Allanah can't claim a deduction for the cost of undertaking her law degree. The course will enable Allanah to change her employment and it doesn't allow her to maintain or improve the knowledge she requires to be a burlesque dancer.

End of example

Seminars, conferences and training courses

You can claim for the cost of seminars, conferences and training courses that relate to your work as an employee in the adult industry.

The costs you can claim includes fares to attend the venue where the seminar, conference or training course is held and registration costs. If you need to travel and stay away from home overnight to attend such an event, you can also claim the cost of accommodation and meals.

You may not be able to claim all of your expenses if attending a seminar, conference or training course is for both work-related and private purposes. If the private purpose is incidental, such as a catered lunch or a reception for delegates, you can still claim all your expenses. However, if the main purpose is not work-related, such as a holiday, you can only claim the direct costs. Direct costs include the registration costs.

Where you have a dual purpose for attending the seminar, conference or training course – for example you add a holiday of one week to a training course that runs for one week, then you can only claim the work-related portion.

Example: deductible conference expenses

Gwyneth is an actor in the adult industry. Each year she pays the fee to attend an adult entertainment conference to maintain or increase the knowledge, capabilities or skills she needs to earn her income in her current employment.

Gwyneth can claim a deduction as she incurs the expense and her employer doesn't reimburse her.

End of example

 

Example: study to improve skills for a current job

Carmel is an exotic dancer and attends dance classes to maintain her existing dance skills, and to learn new dance skills.

Carmel can claim a deduction for the cost of the classes. The lessons will maintain and improve the skills and knowledge she needs to perform her current duties.

End of example

For more adult industry worker expenses, see:

QC18626