Apprentice and trainee expenses T–W

Tools and equipment

You can claim a deduction for tools and equipment you use to perform your duties as an apprentice or trainee. For example, an air compressor, scissors, knives, power drill or hammer.

If you're a new apprentice and you receive government funded tools through your employer or your employer reimburses you for the cost of your tools and equipment, you can't claim a deduction for them.

You can only claim a deduction for the work-related use of the items and equipment.

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

• you use it mainly for work purposes
• it's not part of a set 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
• is part of a set 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 decline in the value for the period of the income year that you own it. To work out your deduction use the Depreciation and capital allowances tool.

You can claim a deduction for the cost of insurance repairs to tools and equipment you use for work purposes. If you also use them for private purposes, you can only claim an amount for your work-related use.

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

Travel expenses

You can claim a deduction for overnight 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 the travel (incidentals). For example, when you travel interstate to attend a work-related conference, seminar or training course.

You can't claim a deduction for travel expenses where you haven't incurred 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.

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

• you were away overnight
• you spent the money
• the travel directly relates to earning your employment income
• how you work 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
• you spent the whole allowance on deductible accommodation, meal and incidental expenses (if applicable).

The Commissioner's reasonable amount is set each year. The amount is used to determine whether an exception from keeping written evidence applies for the following expenses which are covered by a travel allowance:

• accommodation
• meal
• incidentals.

You don’t have to keep written evidence such as receipts 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 expenses, not just for the amount over the Commissioner’s reasonable amount.

Even if you are 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 2023/3 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2023–24 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 from home expenses

You may be able to claim a deduction for working from home expenses you incur as an employee. Your expenses may include additional running expenses such as electricity, the decline in value of equipment or furniture, phone and internet expenses. You must:

• use one of the methods set out by us to calculate your deduction
• keep the correct records for the method you choose.

There are some expenses you can't claim a deduction for as an employee. Employees who work at home can't claim costs:

• for coffee, tea, milk and other general household items your employer may provide you at work
• for your children and their education including
  • setting them up for online learning
  • teaching them at home
  • buying equipment such as iPads and desks
• your employer pays for or reimburses you for the expense
• for the decline in value of items your employer provides – for example, a laptop or a phone.

Generally, as an employee, you can’t claim occupancy expenses (rent, rates, mortgage interest and house insurance premiums), unless your home is your 'place of business'.

You can’t claim a deduction if your employer paid for your home office to be set up or they reimburse you for expenses you incur.

Use the Home office expenses calculator to help you work out the amount you can claim as a deduction for home office expenses.

For more information, see:

• PS LA 2001/6 Verification approaches for electronic device usage expenses
• TR 93/30 Income tax: deductions for home office expenses
• PCG 2023/1 Claiming a deduction for additional running expenses incurred while working from home - ATO compliance approach

For more apprentice and trainee expenses, see

• Apprentice and trainee expenses A–K
• Apprentice and trainee expenses L–O
• Apprentice and trainee expenses P–S