If you’re a
factory worker
it pays to learn what you
can claim

To claim a deduction for work‑related expenses:
• you must have spent the money yourself and weren’t reimbursed
• it must directly relate to earning your income
• you must have a record to prove it.*

You can only claim the work‑related portion of an expense.
You can’t claim a deduction for any part of an expense that does not directly relate to earning your income.

* You can use the myDeductions tool in the ATO app to keep track of your expenses and receipts throughout the year.

Car Expenses

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 work outside normal business hours – for example, weekend or early morning shifts.

You can claim the cost of using a car you own when you drive:

  • directly between separate jobs on the same day – for example, from your job as a factory worker to your second job as a bar assistant
  • to and from an alternate workplace for the same employer on the same day – for example, from the warehouse to a job site.

In limited circumstances, you can claim the cost of trips between home and work, where you carry bulky tools or equipment for work. You can claim a deduction for the cost of these trips if all of the following apply:

  • the tools or equipment are essential to perform your employment duties and you don’t carry them merely as a matter of choice
  • the tools or equipment are bulky – meaning that because of the size and weight they are awkward to transport and can only be transported conveniently by the use of a motor vehicle
  • there is no secure storage for the items at the workplace.

If you claim car expenses, you can use the logbook method or the cents per kilometre method to calculate your deduction.

If you use the logbook method, you need to keep a valid logbook to work out the percentage of work‑related use along with written evidence of your car expenses.

If you use the cents per kilometre method, you need to be able to show how you calculated your work‑related kilometres and that those kilometres were work related.

If you claim 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, servicing, and insurance costs.

Clothing and Laundry Expenses

(incl footwear)

With a few exceptions, clothing can’t be deducted as a work‑related expense.

You can’t claim the cost to buy, hire, repair or clean conventional clothing you wear for work, 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 – for example, jeans or sneakers.

You can claim the cost to buy, hire, repair or clean clothing if it is:

  • protective – clothing with protective features and functions that you wear to protect you from specific risks of injury or illness at work. For example, steel‑capped boots, gloves or fire‑resistant clothing.

You can’t claim a deduction if your employer pays for or reimburses you for these expenses.

Licences and Certificates

You can’t claim the initial cost of getting a special licence, condition on your licence or certificate in order to gain employment – for example, a forklift licence.

You can’t claim the cost of getting or renewing your driver’s licence, even if it is a condition of your employment.

You can claim the additional costs to renew a special licence, condition on your licence or certificate in order to perform your work duties.

For example, if you need to have a heavy vehicle permit to get your job, you can’t claim the initial cost of getting it. However, you can claim the cost of renewing it during the period you are working.

Tools and Equipment Expenses

You can claim the cost of tools and equipment you use for work, including repairs and insurance. For example, an air compressor, drill or hammer.

If a tool or equipment costs:

  • more than $300 – you claim a deduction for the cost over a number of years (decline in value)
  • $300 or less (and doesn’t form part of a set that costs more than $300) you can claim an immediate deduction for the whole cost.

You can’t claim tools and equipment that are supplied by your employer or another person.

If you also use the tools and equipment for private purposes, you can only claim the work‑related portion. You will also need to apportion the cost of insurance and repairs between private and work‑related use.

Meal and Snack Expenses

You can’t claim the cost of food, drink or snacks you consume during your normal working hours, even if you receive an allowance. These are private expenses.

If you receive an overtime meal allowance under an industrial law, award or agreement and it’s included in your assessable income, you can claim the cost of the meal that you buy and eat when you work overtime.

Other Expenses

You can claim union fees, professional association fees and safety equipment such as goggles and breathing masks.

You can’t claim private expenses, such as:

  • parking at your normal place of work, or public transport, taxi or ride share expenses from home to work
  • flu shots and other vaccinations, even if you’re required to have them for work
  • music subscriptions
  • childcare fees.

You can’t claim a deduction if the cost was met or reimbursed by your employer.

This is a general summary only.
For more information, contact David Orth Gold Coast Accounting @ Atlas Tax and Accounting us.