FocusOn - Building Workers: Guide to Deductions

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The Taxation Office releases an occupational specific publication each year. This guide simplifies that document for your convenience.

Record Keeping

Keeping appropriate records is essential to maximising your claims. You can improve the efficiency of your record keeping by making regular summaries of your receipts.  Source documents such as receipts or invoices are required to be kept to prove your claim.  The only exception to the substantiation rules is if your deductions (not including the claim for car expenses) in total are less than $300.

Claimable Deductions

You can claim deductions for expenses you incur in gaining your assessable income.  This does not apply where your employer reimburses you for the costs you have incurred.

Allowances

The receipt of an allowance does not automatically entitle you to a tax deduction.  You can only claim deductions against an allowance if you have incurred deductible expenses. 

Examples of allowances which you may be entitled to claim against are tool allowances, overtime meal allowances and travel allowances.  There is no claim available for allowances for carrying out dangerous or unpleasant work or work requiring special skills.

Car and Travel Expenses

You can claim the cost of travel in your car using one of the four methods available. These are:

	12% of market value
	One-third of actual expenses
	Log book method
	Cents per kilometre

For more information about these methods please contact our office or refer to the article on our website using the following link: www.youraccountant.com.au/publications/focuson/motor_vehicle

You can only claim travel in your car where the travel is between two workplaces.  For example, travel between two employers or travel between your employer's head office and a work site. Travel between your regular place of work and home is not deductible.  However, you may be able to claim home to work travel if:

	You carry bulky tools or equipment and there is nowhere at the work site to store them safely.
	You start your work at home before you leave home, e.g. a project manager who is on call and issues instructions over the telephone before leaving for work.
	You travel to an alternative workplace such as your employer's head office.
	You have shifting places of work, e.g. a concrete formworker who moves between house sites during the day.

The same principles apply to other travel costs such as parking fees, road tolls, taxi fares and train fares.

Clothing Expenses

You cannot claim the cost of clothing that is ordinary or conventional even where the clothes are purchased specifically for work.  You can claim the cost of protective clothing such as high visibility vests, overalls, gloves, steel capped boots or sun protection if you are required to work outside.  You may also be able to claim the cost of a uniform that is enforced by your employer. 

Please note that jeans, drill shirts and pants that are not designed to protect the wearer cannot be claimed.

If the item of clothing meets the above criteria you can also claim up to $150 of laundry expenses without having to substantiate your claim.  You will need to keep track of the number of loads you do with the item of clothing in it.  The Taxation Office permits a deduction of $1 per load, or 50c per load where the clothing item is mixed in with your other clothes.  Dry cleaning costs are also claimable, but must be substantiated.

Self-education Expenses

These expenses relate to costs incurred in relation to undertaking a course of education provided by a school, university, college or another place of education such as TAFE.  For example, tuition fees, textbooks, home office claims, motor vehicle costs, etc.   

You can claim self-education expenses only where there is a direct connection between your studies and your current work activities.  You cannot claim a deduction for self-education expenses incurred to enable you to obtain a new job or commence a new business.

Other Expenses

There are a number of expenses that you can claim. Apportionment is required where the item is not fully used for work. This will be based on a work-related percentage derived from a diary or other record.

Published : September 2012