Amounts you do and don't include
You must include all income you receive during the income year as an employee in the fitness and sporting industry in your tax return, this includes:
- salary and wages, including cash or bonus payments
- allowances
- compensation and insurance payments – for example, payments made under an income protection insurance policy to replace salary and wages.
Don't include as income any reimbursements you receive.
Your income statement or payment summary will show all your salary, wages and allowances for the income year.
Allowances
You must include all allowances your employer reports on your income statement or payment summary as income in your tax return.
An allowance is where your employer pays you an amount as an estimate of costs you might incur:
- to help you pay for a work expense – for example, a work uniform
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, broken shift allowance
- as an amount for having special duties, skills or qualifications – for example, first aid qualifications.
Your employer may not include some allowances on your income statement or your payment summary. Find out about declaring income and claiming deductions for Allowances not on your income statement or payment summary.
Allowances not on your income statement or payment summary
If you receive an allowance from your employer, it does not automatically mean you can claim a deduction.
Your employer may not include some allowances on your income statement or payment summary, you will find these amounts on your payslip. You don't need to declare these allowances as income in your tax return, unless you're claiming a deduction. Examples include travel allowances and overtime meal allowances.
If you spend the allowance amount on work expenses, you:
- don't include it as income in your tax return
- can't claim any deductions for the work expenses the allowance covers.
If you're not claiming a deduction, you don't need to keep any records of the amounts you spend.
If you spend your allowance on a deductible work-related expense, to claim a deduction you:
- include the allowance as income in your tax return
- include a claim for the work expenses you incur in your tax return
- must have records of your expenses.
If you can claim a deduction, the amount of the deduction is not usually the same amount as the allowance you receive.
Allowances and claiming a deduction
The following table sets out allowances you may receive and when you can claim a deduction.
Allowance types, reason for the allowance and if you can claim a deduction
|
Reason for allowance |
Example of allowance type |
Deduction (Yes or No) |
|---|---|---|
|
Compensation for an aspect of your work that is unpleasant, special or dangerous or for industry peculiarities |
Supervisor allowance Broken shift allowance |
No These allowances don't help you pay for deductible work-related expenses |
|
An amount for certain expenses |
Uniform allowance |
Yes If you incur deductible expenses |
|
An amount for special skills |
A first aid certificate |
Yes If you incur deductible expenses |
Example: allowance assessable, no deduction allowable
Janelle is the manager of a fitness centre. Janelle's employer pays her a weekly supervisor allowance for performing the duties of a manager.
The allowance is shown on her income statement at the end of the income year.
Janelle must include the supervisor allowance as income in her tax return.
Janelle can't claim a deduction because she doesn't incur any expenses. The allowance compensates her for the additional duties she takes on as the manager of the centre. It is not to help pay for work-related expenses that Janelle might incur.
End of example
Example: allowance assessable, deduction allowable
Bronwyn works as a personal trainer at a gym. She generally meets clients at the gym for their sessions but she also meets them at or near where they live. During the income year, Bronwyn uses her own vehicle to travel:
- from the gym to sessions with clients
- from the gym to a training facility for skills training.
Bronwyn's employer pays her 95c per kilometre when she uses her car for work purposes.
At the end of the year, her income statement shows she was paid an allowance of $304 for using her car for work (320 kms × $0.95 = $304).
Bronwyn must include the car allowance as income in her tax return.
Bronwyn can claim a deduction for the cost of using her car for work purposes. She can't claim the amount of the allowance she receives. Bronwyn must calculate the amount of the deduction using the records she keeps whenever she uses her own car for work purposes.
In the past year Bronwyn has kept a record of the work trips she did using her own car, but she doesn't keep a logbook. Her records show she travels 320 kms for work purposes.
As Bronwyn has not kept a logbook, she uses the cents per kilometre method to claim a deduction. The cents per kilometre method rate for the 2023–24 income year is 85c per kilometre.
Bronwyn claims a deduction of $272. Bronwyn calculates her deduction as 320 kms × $0.85 = $272.
End of exampleReimbursements
If your employer pays you the exact amount for expenses you incur (either before or after you incur them), the payment is a reimbursement.
A reimbursement isn't an allowance.
If your employer reimburses you for expenses you incur:
- you don't include the reimbursement as income in your tax return
- you can't claim a deduction for them.
Find out about Fitness and sporting industry employees':