Agriculture industry expenses T–W

Tools and equipment

You can claim a deduction for tools and equipment you use to perform your duties as an agricultural worker. For example, a chainsaw or fencing tools.

You can only claim a deduction for the work-related use of the item.

If the tool or equipment cost you $300 or less, you can claim a deduction for it in the year you buy it, if:

• you use it mainly to produce non-business assessable income (more than 50% of the time)
• it's not part of a set that together cost more than $300
• it's not identical, or substantially identical to, other items that together cost more than $300.

You can claim a deduction for the cost over the life of the item (that is, decline in value) if the tool or equipment:

• cost more than $300
• the item is part of a set that together cost more than $300
• is identical, or substantially identical to, other items that together cost more than $300.

If you bought the tool or item of equipment part way through the year, you can only claim a deduction for the decline in value for the period of the income year that you own it. You also need to apportion your deduction if you use the item for private purposes. To work out your deduction use the Depreciation and capital allowances tool.

You can also claim a deduction for the cost of repairs to tools and equipment and insurance of tools and equipment that you use for work purposes.

You can't claim a deduction for tools and equipment that your employer or a third party supplies for use.

Travel expenses

You can claim a deduction for travel expenses you incur when your work requires you to both:

• travel for work
• sleep away from your home overnight in the course of performing your employment duties.

Expenses you can claim include your accommodation, meals and expenses which are incidental to your travel (incidentals). For example, if you're required to travel during the mustering season for 3 nights to remote or isolated areas of Australia to cart livestock long distances between farms.

You can't claim a deduction for travel expenses where you don't incur any expenses, because:

• you slept in accommodation your employer provides
• you eat meals your employer provides
• your employer or a third party reimburses you for any costs you incur.

You also can't claim a deduction if you:

• are not required to sleep away from your home overnight in the course of performing your employment duties – for example, if you travel interstate for work and return home the same day
• you choose to sleep near your workplace rather than returning home - for example you rent accommodation near your workplace and stay there because you live a long way from where you work.

Receiving an allowance from your employer doesn’t automatically mean you can claim a deduction. In all cases you must be able to show:

• you were away overnight
• you have spent the money
• the travel directly relates to earning your employment income
• how you worked out your claim.

If you receive a travel allowance you must include it as assessable income in your tax return unless all of the following apply:

• the travel allowance is not on your income statement or payment summary
• the travel allowance doesn't exceed the Commissioner's reasonable amount (the reasonable amount is the amount we set each year for determining whether an exception from keeping written evidence applies for accommodation, meal and incidental expenses which are covered by a travel allowance)
• you spent the whole allowance on deductible accommodation, meal and incidental expenses, if applicable.

You must keep written evidence (such as receipts) for all your overseas accommodation expenses regardless of whether you receive an allowance. You don’t need to keep written evidence for other travel expenses if both of the following apply:

• you receive a travel allowance from your employer for the expenses
• your deduction is less than the Commissioner’s reasonable amount.

If you claim a deduction for more than the Commissioner’s reasonable amount you need to keep receipts for all your expenses, not just for the amount over the Commissioner’s reasonable amount.

Even if you're not required to keep written evidence such as receipts, you must be able to explain your claim and show you spent the amounts. For example, show your work diary, that you received and correctly declared your travel allowance and bank statements.

For more information, see TD 2024/3 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2024–25 income year?

Union and professional association fees

You can claim a deduction for union and professional association fees you pay. You can use your income statement or payment summary as evidence of the amount you pay if it's shown on there.

Working animals

You can claim a deduction for the costs associated with a working dog or horse, if the following criteria are met:

• you use the animal in carrying out your work duties – for example, your duties require you to herd cattle or livestock and the animal assists you in doing this
• it is a requirement of your employment that you provide your own animal
• you train the animal for their role from a young age and don't treat them like pets – for example, a cattle dog puppy is trained to herd cattle or livestock.

Costs you incur can include food, vet bills and miscellaneous items like the decline in value of a horse saddle.

You can't claim for the initial cost of buying the animal as this is a capital expense. However, you can claim a deduction for the decline in value of the working animal.

You can't claim a deduction if your employer provides the animal, pays for the animal's expenses or reimburses you for the expenses.

For more agricultural worker expenses, see:

• Agriculture industry expenses A–F
• Agriculture industry expenses G–O
• Agriculture industry expenses P–S

 Find out about agriculture industry:

• Income and allowances
• Record keeping for work expenses