No one likes getting a large tax bill at the end of a financial year. If you want to avoid getting a bill and actually get a refund you need to reduce your taxable income by listing work-related tax-deductible expenses you have incurred throughout the financial year.
Information in this blog post is not financial advice and is intended as a guide only. For any and all tax advice you should engage a tax accountant.
I have listed out common expenses that a surveyor based and doing their tax in Australia may be able to claim at tax time.
Important: Review the below criteria to see if you are able to claim a tax deduction for any work-related expenses.
(a) You spent your own money and weren’t reimbursed for the expense.
(b) The expense is related to you being able to do your job as a surveyor.
(c) You can prove the expense by having a record of it (receipts)
If there is an expense that was only partially work-related, you can’t claim the full amount and will need to estimate what percentage of the expense was for work, and what percentage of the expense was for personal use.
See the below list of expenses that may be a tax-deductible expense for an Australian surveyor come the end of the financial year.
Car & Travel Expenses
If you are able to claim travel and vehicle-related expenses there are two different ways to calculate the expense. You must either (a) keep a log book of all work-related travel to calculate a percentage of work vs personal use, or (b) use the cents per kilometre method, but you must be able to prove what you are claiming was for work.
You can claim
- The cost of driving your car (or other related travel costs) to a work site or alternative place of work, and between work sites on the same day.
- If you are required to transport work equipment from your home to work then this may be a tax-deductible expense.
- Parking fees and tolls where the car expense conditions are met.
- Any car or travel-related expenses that are covered by an award.
You can’t claim
- The cost of driving your car (or other related travel costs) of your trips between your home and regular place of work. This includes if you are working outside of your regular hours or you have significant travel to get to work.
Clothing & Footwear Expenses
You can claim
- The costs for buying, hiring, repairing, replacing and cleaning of personal protective clothes (PPE).
- The purchase of any clothing or other PPE (gloves, glasses, boots, etc) that are required to protect you at your income-earning work.
You can’t claim
- The purchase and cleaning of plain uniforms worn at work.
- You can’t claim any expenses that are incurred by you and aren’t reimbursed by your employer.
Education Expenses
You can claim
- A deduction for any self-education that is intended to either maintain your professional status or improve it, and it may increase the chance of an increase in income.
- A subscription to a professional magazine.
You can’t claim
- If the study is related to getting a different unrelated job, then this is most likely unable to be deducted.
Meal Expenses
You can claim
- If you need to purchase a meal when working overtime, and if you receive an overtime meal allowance, and/or it is included in your award, this is a tax-deductible expense.
You can’t claim
- Any and all food and drink purchases you make outside and during work.
Home Office Expenses
Because of COVID, most professionals are doing some level of work from home. This means that there will be some additional work-related expenses for you.
You can claim
- The depreciation of any of your home office equipment.
- A percentage of the utilities used at home like electricity and internet can be a tax-deductable work expense.
- The percentage of your mobile phone expenses that are work-related.
You can’t claim
- Any and all food and drink purchases you make outside and during work.
- Non-work related expenses like rates, mortgage and other such things.
Other Expenses
Other types of expenses that can be claimed as work-related are:
You can claim
- The fees to join a professional organisation or union.
- Renewal of any licenses, memberships, permits, white card or anything else similar.
You can’t claim
- Any expense that was not paid for by you and/or reimbursed to you by your employer.
Conclusion
I hope you have found this guide useful. The best time to start documenting any work-related expenses is when it happens. This will make your life much easier come tax time.