What is deductable to your employer but not to you as an employee

The items below are exempt through the fringe benefits tax provisions making them deductable to the employer but not to the employee. If you believe you are eligible for one of these items it may be best to include it in your salary package or salary sacrifice the amount.

Relocation costs:
These are costs incurred when your employment related duties require you to relocation your place of residence. It can occur when acquiring a new job or when required to move locations for a current job. It can also include costs of moving back to your original location after those duties are complete. Common relocation costs are:
- Airfairs
- Freight and Removalist costs
- Meals and accommodation cost to get to new location
- Storage of goods used predominantly by the family

Living away from home allowance (rent and food):
This allowance can be paid if employment duties require you to live away from your current place of residence and you will be still maintaining that residence for your personal use. Just be wary that there are very tight rules for claiming this exemption. This allowance can be paid for:
- Rental costs, and
- some food components above a statutory amount.

Remote area housing (rent in remote areas):
This exemption can be used by an employer to pay for rent for an employee working in a remote area without the need to pay fringe benefits tax.

Fly in Fly out transport to site:
The exemption can be used by employers of fly in fly out employees working in a remote location for transport costs from their place of residence to the work location. This can included costs incurred to and from the airport.

Self-education expenses:
These costs can be both deductable to an employee and an employer however if paid by an employee the first $250 in costs is classified as personal and cannot be claimed as a tax deduction.

The information supplied is only meant to assist readers in their understanding of the law and is not intended to be taxation advice.

Other work related expenses and specifically excluded Items

This is the hardest area to define. For these types of deductions it is best to consider what costs you have incurred to earn the income and make a list and talk to a tax agent. Items can also be proportionately claimed such as laptops, internet, or mobile costs.

Specifically excluded Items include:
- Government fines (speeding/parking fines)
- Home office holding costs if you have an office maintained for you at your employer’s office.
- Meals during a working day

The information supplied is only meant to assist readers in their understanding of the law and is not intended to be taxation advice.

Work Related Tax Deductions - Car expense

When the law was written it was common for taxpayers to live at their workplace. As such travel costs incurred due to living away from your workplace are classified as a personal cost.

You can claim your car if:
- You are required to go to multiple worksites per day, or
- Have to carry bulky tools or equipment with you to work, or
- Are travelling between workplaces or to and from clients.

The information supplied is only meant to assist readers in their understanding of the law and is not intended to be taxation advice.

Work Related Tax Deductions - Uniform/Clothing

These are deductable if they are:
- occupation specific (something that is only warn in that occupation and cannot be warn at any other time)

- protective (protects you or your clothes from the environment or other workplace hazards. These can include sun glasses, non-slip shoes, steel cap boots, heavy duty clothing and overalls.)

- compulsory (has logo or is required to be worn under an employer’s uniform policy. Can simply be a distinctive colour)
If you are claiming one of these uniform types then you can also claim laundry costs, if washed yourself, up to the value of $150 per year.

The information supplied is only meant to assist readers in their understanding of the law and is not intended to be taxation advice.

Main residence exemption

Under Australian tax law you and your dependents are entitled to claim one main residence that is exempt from capital gains tax.

Here are some tricks and traps that can affect the claiming of this exemption:

Renting:
- If you are living in a property and rent out a room, part of the property can be subject to capital gains tax.
- However, if you move out of the property and rent it out, then you can continue to claim the property as you main residence for six years after moving out.

Two main residences:
- Subject to certain conditions, you can have two main residences for up to six months when selling a property

Vacant Land:
- Vacant land can be claimed as a main residence for up to four years as long as you move into the house as soon as possible after construction.

Subdivision:
- When subdividing a main residence, only one of the subdivided lots can be treated as your main residence. The remaining lot(s) are taxable from the purchase of the original lot.

Claiming the exemption:
- If there are two properties that can be claimed as your main residence then you can choose which one you want to claim
- Deciding on which property should be claimed only needs to happen when you sell the property and need to declare the capital gain.
- Depending on circumstances, exempt periods due to the main residence exemption are either calculated on days claimed over time period owned or market value at period of change.
- Unclaimed holding costs (eg: interest, council and water rates) can reduce capital gains.

The information supplied is only meant to assist readers in their understanding of the law and is not intended to be taxation advice.