Not claiming all your deductions is like leaving the ATO a tip a tax time to thank them! Don’t tip the ATO! Read on to make sure you know what you can deduct in your online tax return this tax time so you’re not leaving the ATO a tip.
“And for you Mr Tax Return, what will you be having this evening, sir?”
“Oh, the tax deduction verde, oh yes very good sir, a personal favourite of mine.”
Jokes aside, it is very important to be claiming all the hospitality tax deductions that you can in your tax return. Here are some tax deductible expenses for hospitality workers and waitstaff. 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.
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 reimbursed from the till)
- 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 tax deductions for hospitality workers.
Remember, a record isn’t always a receipt. There are a number of ways to substantiate your expenditure. Check out our blog on tax deductions that don’t require a receipt.
What Is Your Taxable Income
Your taxable hospitality income is money (earnings) 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 Hospitality Workers
Hospitality Specific
The following list of tax deductions are specifically for the hospitality industry. This list contains common tax deductions for all hospitality industry works and specific ones for different roles. It doesn’t matter what level you are, this tax deductions are industry based.
- 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, gloves, sunscreen if working outside etc)
- Purchase of equipment and tools used for your hospitality work (pens, notepads, knives if needed etc) up to $300
- Depreciation expense of equipment and tools over $300
- The repair and/or upkeep of hospitality tools and equipment
- Interest generated from loans relating to work activities
- Self-education and courses that will improve your hospitality work (barista license, bartending course, waitress training, waitressing course, RSA etc)
- License and certification (Approved manager certification, barista license, RSA)
- Work union fees/other similar organisations
- Subscriptions and magazines relating to your hospitality work
- Travel expenses if work related (conferences, moving between jobs, and going to see clients)
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, waitress clothes, barista aprons and bartender uniforms 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
Restaurant manager tax deductions and their staff can claim any license or training they get that will help with their work. They can’t claim the initial buy-in cost, but they can claim any cost it takes to renew it. For more information, see a professional.
General Tax Deductions
The below list of tax deductions are quite general in nature, but we see them pop up across a lot of industries. If you’re unsure about these, remember, it’s free to talk to one of our tax professionals.
- Car expenses and general wear if your car use is work related (estimated Km or a logbook with all expense items)
- Travel expenses for your work (flights, taxis and trains etc)
- Accommodation needed on work reasons (including meals)
- Phone bills for work
- Work related computing
- Working from home costs
- Self-education
- Tax return fees dating to the year previous
- Insurances
- Rental expense (if you are renting)
- Charity + gift deductions (including gifts to clients tax deductible ATO)
- Client entertainment expenses tax deductible ATO
- Sun protection (if you have to work outside)
Maximising Your Tax Return With An Online Tax Agent
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.
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
One Click Life fast offers online tax returns at your fingertips in an easy-to-use platform run by industry professionals.
Over 250,000 Aussies have selected One Click Life!
Nervous about completing your Tax Return online by yourself? Over 250,000 Aussies have already created an account with One Click Life! Our very simple and easy to use online Tax Return has fast become the #1 online tax agent of choice by Australians all across the country.
We highly recommend him and his team if you need any advice and legal work from them .
(HONEST 2 GOD)
it was so simple and easy to use both online and the app
Let One Click Life take care of your Tax Return, and life’s essential tasks so you can spend more time doing the things you love.
