What can hospitality workers claim on tax? Hospitality tax deductions can include uniforms, laundry, and vehicle expenses.
At My Tax Refund Today, we understand the unique challenges you face as a hospitality worker, and we’re here to make tax time a breeze.
By knowing all about hospitality tax deductions, you can maximise your tax refund and maybe even reward yourself for all your hard work!
Full List of Tax Deductions for Hospitality Workers
- Uniforms and Protective Clothing
- Laundry and Dry-Cleaning Expenses
- Work-Related Travel Expenses
- Vehicle Expenses
- Self-Education and Training Expenses
- Tools and Equipment
- Union and Professional Association Fees
- Telephone and Internet Expenses
- Home Office Expenses
- Sun Protection Costs
- Seminars and Conferences
- Licences and Certificates
- Income Protection Insurance
Uniforms and Protective Clothing
Do you wear a specific uniform or protective gear at work? You can claim expenses related to:
- Purchasing or hiring uniforms: This includes distinctive uniforms with your employer’s logo or specific attire required for your role, like chef’s whites or branded aprons.
- Protective clothing: Non-slip shoes, gloves, hairnets, and any other gear that protects you from workplace hazards.
- Maintenance and repairs: Costs for repairing or altering your work clothes.
Important: Ordinary clothes, even if your employer requires you to wear them (like black trousers and a white shirt), aren’t deductible unless they have a logo or are unique to your job.
Laundry and Dry-Cleaning Expenses
Keeping your uniform clean is essential, and the ATO recognises that. You can claim:
- Laundry costs: This includes expenses for washing, drying, and ironing your work clothes at home.
- Dry-cleaning bills: If your uniform requires professional cleaning.
Tip: If your laundry claim is under $150 and your total work-related expenses are under $300, you don’t need to keep receipts. However, it’s good practice to keep a record of how you calculated your claim.
Work-Related Travel Expenses
If your job requires you to travel, you may be able to claim:
- Travel between multiple workplaces: If you work at different locations for the same employer in one day.
- Travel to alternative workplaces: Such as attending meetings, training sessions, or picking up supplies.
- Overnight travel: If your job requires you to stay away from home overnight, you can claim accommodation, meals, and incidental expenses.
Remember: Daily commuting from home to your regular place of work isn’t deductible.
Vehicle Expenses
Using your own car for work? You might be eligible to claim vehicle expenses when:
- Transporting heavy or bulky equipment: If you need to carry items like large toolkits or equipment that your employer doesn’t provide and there’s no secure storage at work.
- Work errands: Such as banking, post office runs, or delivering items.
You can choose between:
- Cents per kilometre method: Claim up to 5,000 business kilometres per vehicle, based on a set rate per kilometre.
- Logbook method: Claim the work-related percentage of your actual car expenses, including fuel, maintenance, and depreciation.
Note: Keep a record of your work-related trips to substantiate your claims.
Self-Education and Training Expenses
Investing in your skills not only benefits your career but can also reduce your tax. You can claim expenses if the course:
- Maintains or improves skills required in your current job.
- Is likely to result in an increase in income from your current employment.
Deductible expenses include:
- Course fees: Excluding HELP or HECS repayments.
- Textbooks and stationery: Costs for required reading materials and supplies.
- Travel expenses: Getting to and from the place of education.
Example: If you’re a bartender taking a mixology course to learn new cocktail recipes, the expenses may be deductible.
Tools and Equipment
Purchasing tools and equipment necessary for your job can be expensive. You can claim:
- Immediate deduction: For items costing $300 or less.
- Depreciation over time: For items over $300, you can claim a deduction for the decline in value over the item’s effective life.
This includes:
- Chef’s knives and utensils
- Bartending equipment: Shakers, strainers, etc.
- Waitstaff accessories: Order pads, pens, or portable devices.
Maintenance costs: Sharpening knives or repairing equipment are also deductible.
Union and Professional Association Fees
Being part of a union or professional body can offer support and resources. You can claim:
- Annual membership fees: To unions or associations directly related to your job.
Example: If you’re a member of the United Workers Union, which represents hospitality workers, your membership fees are deductible.
Telephone and Internet Expenses
If you use your personal phone or internet for work purposes, you can claim the work-related portion of:
- Phone calls and texts: To your employer, colleagues, or clients.
- Data usage: If you access work emails or applications.
How to calculate:
- Itemised bills: Identify work-related calls and calculate the percentage.
- Reasonable estimate: If bills aren’t itemised, keep a diary over a representative four-week period.
Tip: Only claim the portion that relates to your work usage.
Home Office Expenses
Even if you don’t work from home regularly, you might perform some duties outside of work hours. You can claim:
- Running expenses: A portion of your electricity and gas bills for heating, cooling, and lighting.
- Office equipment: Depreciation of items like desks, chairs, and computers.
Shortcut method: Due to COVID-19, the ATO introduced a temporary shortcut method, allowing you to claim a flat rate per hour for all running expenses.
Note: Keep a record of the hours you work from home and the expenses incurred.
Sun Protection Costs
If you work outdoors, protecting yourself from the sun is crucial. You can claim:
- Sunscreen
- Sunglasses
- Hats
Example: If you’re a waiter serving in an outdoor dining area or a barista at an open-air café, these expenses are deductible.
Seminars and Conferences
Staying updated with industry trends is beneficial. You can claim:
- Registration fees: For seminars, workshops, or conferences related to your job.
- Travel and accommodation: If you need to travel and stay overnight.
Example: Attending a hospitality expo to learn about new food and beverage trends.
Licences and Certificates
Maintaining your professional qualifications is important. You can claim:
- Renewal fees: For licences and certificates required for your current job, like Responsible Service of Alcohol (RSA) or Food Safety Supervisor certificates.
Important: Initial application fees for obtaining a licence or certificate for the first time aren’t deductible.
Income Protection Insurance
Protecting your income in case of illness or injury is wise. You can claim:
- Premiums paid: For insurance policies that cover the loss of income.
Note: This doesn’t include life insurance, critical care insurance, or policies paid through your superannuation.
Tips to Maximise Your Tax Return
We want to help you get the most out of your tax return. Here are some handy tips:
- Keep detailed records: Store all receipts, invoices, and statements throughout the year.
- Use technology: Apps and software can help track expenses and categorise them.
- Separate expenses: Only claim the portion of expenses that relate to your work.
- Stay informed: Tax laws can change, so keep up-to-date or consult a professional.
What You Generally Can’t Claim
To avoid any issues with the ATO, be aware of expenses that aren’t deductible:
- Everyday clothes: Even if your employer requires you to wear them (like black pants and white shirts without logos).
- Initial licence fees: Costs for obtaining a licence or certificate for the first time.
- Commuting costs: Travel from home to your regular place of work and back.
- Meals and entertainment: Unless you’re travelling overnight for work purposes.
- Fines and penalties: Such as parking or speeding fines incurred during work.
Estimate Your Tax Refund
We’re Here to Help!
At My Tax Refund Today, we’re dedicated to making tax time simple and stress-free for hospitality workers like you. Our experienced team understands the specifics of hospitality tax deductions and can guide you through the process.
- Personalised advice: We’ll look at your individual situation to maximise your refund.
- Quick and convenient: Our online services mean you can get your refund processed without leaving home with the option of an instant tax refund.
- Ongoing support: Have questions? We’re here to help year-round, not just at tax time.
Working out the tax deductions for hospitality workers doesn’t have to be complicated. With the right information and support, you can ensure you’re not leaving any money on the table. So why not let us help you get the refund you deserve? After all, you’ve earned it!
Contact My Tax Refund Today and let our friendly team assist you in making the most of your hospitality tax deductions. We’re just a call or click away!
