Details on claiming paramedic expenses.
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 because a fleet vehicle was not available.
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.
You can claim a deduction for tools and equipment you use to perform your duties as a paramedic. For example, a stethoscope or nurses pin watch.
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 a deduction 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. 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.
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 (incidentals). For example, when you travel interstate 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 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.
You also can't claim a deduction if you are not required to sleep away from your home overnight in the course of performing your employment duties, for example if you fly interstate and return home the same day, or you choose to sleep near your workplace rather than returning home.
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 have 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 shown on your income statement or payment summary
- the travel allowance doesn't exceed the Commissioner of Taxation's reasonable amount
- you spent the whole allowance on deductible accommodation, meal and incidental expenses, if applicable.
The Commissioner's reasonable amount is set each year. The amount is used to determine whether an exception from keeping written evidence applies for the following expenses which are covered by a travel allowance:
You don’t have to keep written evidence such as receipts if 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 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: travel for work deductible
Jim is a clinical instructor based in Melbourne. He is required to give some training to the wilderness response paramedics based at Falls Creek and the surrounding stations. The training is for 3 days.
Jim travels to Falls Creek the night before the training commences and travels back to Melbourne on the third day of the training. He arrives home at 9:00 pm that evening.
Jim receives an allowance of $495 to cover his accommodation and meals while he is travelling. The allowance is included on his income statement at the end of the income year.
While he is in Falls Creek, Jim stays in accommodation which cost him $110 = per night. Jim eats at the same places each day and spends around:
- $23 for breakfast
- $19 for lunch
- $35 for dinner.
On the way home from Falls Creek, he spends $21 on his dinner. The amounts Jim spends on his accommodation and meals are less than the reasonable amounts.
As the amounts Jim is claiming for accommodation and meals are less than the reasonable amounts, Jim does not have to substantiate his expenses, however he may be asked to show how he calculated his claim.
At the end of the year, Jim declares the allowance of $495 received from his employer as income in his return and claims a deduction of $582 which he has calculated as follows:
Accommodation: $110 × 3 nights = $330
4 dinners: ($35 × 3) + $21 = $126
3 breakfasts: $23 × 3 = $69
3 lunches: $19 × 3 = $57
Total amount spent: $330 + $126 + $69 + $57 = $582End of example
For more information, see TD 2022/10 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2022-23 income year?
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.
You can't claim a deduction for the cost of buying or maintaining watches or smart watches, even if they are required as part of your job. This is a private expense.
However, you can claim a deduction if your watch has special characteristics that you use for a work-related purpose. For example, a nurse's fob watch.
If the watch cost more than $300, you can claim a deduction for its decline in value over the effective life.
You can claim a deduction for the cost of repairs, batteries and watchbands for special watches. You only claim a deduction for the amount you use the item at work if you also wear it for private purposes.
Similar to ordinary watches, a smart watch (for example, one that connects to a phone or other device to provide notifications, apps and GPS) is a private expense and not deductible under ordinary circumstances.
Example: smart watch not deductible
Stefanie is a paramedic. As part of her role, she needs to keep GPS records of where she travels. Her employer provides her with a GPS for this purpose. Stefanie buys a smart watch so it is easier for her to keep personal GPS records and to check messages sent to her phone while she is in the ambulance. She receives both private and work-related messages through the smart watch.
Stefanie can't claim a deduction for the smart watch, because her employer provides her with the necessary tools to fulfil her work functions. The ability to check messages on her phone with her watch is not a part of her employment duties and the cost of the watch is not a deductible expense for her work.End of example
For more paramedic expenses, see: