However, it's important to understand not only what you can claim but also what you can't claim to ensure compliance with Australian tax regulations.
Car Expenses
You can claim a deduction when:
- You're driving between separate jobs on the same day (e.g., you work for two different employers).
- You're driving to and from an alternate workplace for the same employer on the same day (e.g., traveling between depots or worksites).
- You're transporting bulky equipment provided you meet specific criteria:
- Your employer required you to transport the equipment to work.
- It was essential for earning your income.
- There was no secure area to store the equipment at work.
- The equipment was bulky, around 20kg, and cumbersome to transport.
You can't claim the cost of normal trips between home and work, even if you live a long way from your usual workplace or have to work outside normal business hours. This includes parking fees and tolls when you drive to and from work.
Depreciation of Tools and Equipment Expenses
You can claim a deduction if you are required to purchase tools and equipment for your work and they cost more than $300, you can claim a deduction for this cost spread over a number of years (depreciation).
You can't claim: A deduction relating to any private use of the equipment or if the tools and equipment are supplied by your employer or another person. You can only claim an immediate deduction for tools and equipment where the cost is $300 or less.
Travel Expenses
You can claim a deduction for travel expenses if you are required to travel overnight from your usual work location (e.g., traveling to a remote area), provided the cost was incurred while carrying out your work duties.
You can't claim: Receiving an allowance from your employer does not automatically entitle you to a deduction. You need to be able to show you were away overnight, you spent the money, and the travel was directly related to earning your income. Please note: Circumstances may be different for FIFO workers. Generally, travel for regular work under FIFO arrangements is not tax deductible. That includes travel between your place of residence and the airport including flights. You can only claim the work-related part of expenses. You can't claim a deduction for any part of the expense that relates to personal use. You must have a record to prove it and you must have spent the money yourself and weren't reimbursed. And yes, it must be directly related to earning your income.
Clothing Expenses
You can claim a deduction for the cost of buying, hiring, mending, or cleaning certain uniforms that are unique and distinctive to your job, or protective clothing that your employer requires you to wear (e.g., steel-capped boots, high-vis vests, fire-resistant and sun protection clothing).
You can't claim: A deduction for the cost of buying or cleaning plain clothing worn at work, even if your employer tells you to wear it (e.g., standard jeans, drill shirts, and trousers).
Other Deductible Expenses
As long as the expense relates to your employment, you can claim a deduction for the cost of:
- Protective equipment such as sunglasses, sun hats, and sunscreens.
- Safety equipment such as harnesses, goggles, and breathing masks.
- Union fees.
You can't claim: You can only claim the work-related part of expenses. You can't claim a deduction for any part of the expense that relates to personal use. You must have a record to prove it and you must have spent the money yourself and weren't reimbursed. It must be directly related to earning your income.
Understanding these deductions is crucial for construction workers in Australia. By claiming eligible deductions and being aware of what can't be claimed, you can effectively reduce your taxable income and save money during tax season. However, it's recommended to seek advice from a tax professional or accountant to ensure you're maximizing your deductions while staying compliant with tax laws. Book an Appointment Online or call our professionals on 1300 555 773. More power to you Queensland!