Not claiming all your deductions is like leaving the ATO a tip at tax time! Read on to make sure you know what you can deduct this tax time so you’re not leaving the ATO a tip.
We want to you to get the maximum refund you’re entitled to by claiming all your hospitality tax deductions. Don’t leave anything out of your online tax return. If you save every little bit, and deduct everything you’re entitled to, the tax return can be massive.
Tax deductions are money you’ve spent to do your job. So, what money have most hospitality workers spent that they claim on tax? This blog explores exactly that!
When it comes down to it, there are three main criteria that qualifies an expense for tax deduction, 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
However, this in itself can be hard to understand. What constitutes an expense as “related” to your job? Here is what defines your taxable income, and a list of deductions for hospitality workers.
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 Is Your Taxable Income
Your taxable income is any money you get from your employer or your work. These things also include:
- PAYG summaries
- Pensions and government allowances
- Interest earned (banks etc)
- Dividends
- Rental property income
- Business income
- Other income earned (capital gains etc)
Hospitality Specific tax deductible expenses
- Buying any uniforms and clothing for your hospitality work
- The cost of laundry for clothes/uniforms that are worn for your job as a hospitality worker
- Protective clothing items that you use for your hospitality work (masks, hair nets, aprons, shoes, gloves etc)
- Purchase of equipment and tools used for your hospitality work (pens, notepads, knives, utensils if needed etc – you do not need a receipt if less than $300)
- Depreciation expense of equipment and tools over $300
- Leasing, repair and maintenance of work-related products and tools
- Interest generated from loans relating to work activities
- License, certification and courses that will improve your hospitality work (Approved manager certification, barista license, cooking course, waitress training, waitressing course, RSA etc)
- License renewal fees
- Work union fees/other similar organisations
- Subscriptions and magazines relating to your hospitality work
- Driving between two places of work in your own vehicle (conferences, moving between jobs, picking up stock and going to see customers / suppliers, driving from one workplace directly to another). This is usually best claimed using the cents per km method of claiming a tax deduction.
Here’s a list of general expenses that may be applicable to you;
- Car expenses and wear (estimated Km or a logbook with all expense items)
- Travel expenses (flights, taxis and trains etc)
- Accommodation for work related reasons (including meals)
- Work phone expenses
- Work related (as a percentage if shared with personal use) for computing
- Home office expenses that relate to work
- Last year’s tax return fee
- Insurance
- Rental property expense (if you are renting)
- Charity donations
- Sunglasses and sunscreen (if you have to work outside)
There will be more hospitality staff tax benefits and tax deductions that aren’t on this list. Tax deductions are not only industry specific, but also change from individual to individual.
Buying Your Hospitality Clothing
For you to be able to deduct your hospitality clothing, both to buy and to put in the laundry, it has to have your work logo/name on it. Luckily, most hospitality worker clothes usually have this.
Protective Clothing For Hospitality Staff
If you need to buy any protective clothing, you can claim that back as a tax deduction. Bartender shoes, or any non-slip shoes for hospitality workers, face masks, gloves, and hair nets are all tax deductible.
Joining A Union
Joining a union is a popular thing for hospitality workers. Can you claim union fees back on tax? The answer is yes.
Licenses and Trainings
Hospitality management and staff can claim any license or training they get that will help with their work as a tax deduction. They can’t claim the initial buy-in cost, but they can claim any cost it takes to renew it.
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