If you’re a farm hand or labourer on an agricultural property, don’t leave any of your tax deductible expenses behind. This would be like leaving a tip for the ATO every year!
Don’t leave money on the table with the ATO. Read on through this blog to ensure you claim all the tax deductions you can. Don’t miss out on getting the refund you are due.
If you save every little bit, and deduct everything you’re entitled to, the tax return can be massive. In this article, we will discuss everything you need to know as a farm hand in order to claim all of your eligible tax deductions and maximise your tax refund.
What qualifies as a tax deduction?
There are only three main requirements that qualify as an expense for tax deductions, which is calculated against your income:
- You must have spent the money and not have been reimbursed
- It must be related to your job
- You must have a record to prove it
Remember, a record isn’t necessarily a receipt. There are tax deductions you can claim without a receipt. Continue on to find out more.
What constitutes an expense as “related” to your job you might ask? Here’s a definition of your taxable income, and a list of farmer tax deductions.
What makes an expense related to your work?
For an expense to be directly related to your job, it has to be directly related to your ability to generate income. The best way for us to explain this is with an example:
If you are working on a farm, the purchase of protective boots that are essential to wear will be an expense directly relating to your income because it would be impossible to do the job without it (safely!).
However, if you work in a pub and like to wear a fancy shirt and cologne, the purchase of the fancy shirt and cologne will not be an expense directly relating to your income, because you can still do your job without looking and smelling great!
See the difference?
If you’re unsure, One Click Life’s easy-to-use platform will help you qualify your deductions – along with some help from our qualified tax team.
What is your taxable income
Your taxable income is money generated from your employer or your work. Your taxable income also includes:
- PAYG summaries
- Pensions and government allowances
- Interest earned (banks etc)
- Dividends
- Rental property income
- Business income
- Other income earned (capital gains etc)
Tax deductible expenses for farmers
Clothing
- Compulsory uniform (which has the logo of the company you work for)
- Protective clothing: steel cap boots, safety visor, high vis clothing etc.
- Laundry of work-related up to $150 (Only for eligible work clothing)
Other Tax Deductions
- Overtime meal expenses where you receive an overtime meal allowance
- Phone for work-related purposes (must have diary of work-related usage)
- Tools and equipment
- Licences and certificates relating to your farming work or operating farming machinery
- Buying or subscribing to work-related professional publication, newspaper, news service or magazine
- Travel expenses, where you receive a travel allowance
- Hats, sunglasses, sunhats, and sunscreens for outdoor working
- Fees from joining a union/other similar organisations
Courses And Self-Education
- Self-education, seminars, conferences and courses that are related to your employment.
Higher Education Contribution Scheme Higher Education Loan Program (HECS-HELP) scheme are not deductible.
Car Expenses Using Cents Per Km
- Driving between separate jobs on the same day (provided neither of the workplaces is your home) – for example, travelling from your first job as a fruit picker directly to your second job to pack blueberries
- To and from alternate workplaces/meeting locations for the same employer on the same day – for example, travelling between fields for your employer
- From home directly to an alternative workplace – for example, travelling from home to a workplace which is not your regular work location.
To claim car expenses you must own the car and maintain a logbook of travel
Maximising your tax return with an online tax agent
There will be more tax tips and deductions for Australian farmers that aren’t on this list. Tax deductions are not only industry specific, but also change from individual to individual.
The best way to claim the most you can (which will maximise your refund) is with One Click Life.
Check out how easy it is to lodge your Tax Return with One Click Life
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