Building and construction employee expenses A–F

Award transport payments (fares allowance)

Allowances you receive from your employer for transport or car expenses that are paid under an award must be included in your tax return. You include these allowances as assessable income.

You can claim a deduction for expenses covered by award transport payments, if the expenses are for work-related travel, and you have actually spent the money.

You will need to be able to show how you work out your claim if we request this information.

 

Car expenses

You can't claim a car expense deduction for normal trips between your home and work. These are private expenses, even if you:

• live a long way from your usual workplace
• have to work outside normal business hours (for example, weekend or early morning shifts).

In limited circumstances, you can claim the cost of trips between home and work, such as where you carry bulky tools or equipment for work or have shifting places of employment.

To be able to claim a deduction for the cost of trips between home and work while carrying bulky tools or equipment, all the following conditions must be met:

• the tools or equipment are essential to perform your employment duties
• the tools or equipment are bulky, meaning that
  • because of the size and weight, they are awkward to transport
  • they can only be transported conveniently using a motor vehicle
• there is no secure storage for such items at the workplace.

It will not be sufficient if you transport the tools or equipment merely as a matter of choice. For example, if your employer provides secure storage, your decision to transport items home will be a matter of choice.

You are considered to have shifting place of work where you have no fixed place of work and you continually travel from one work site to another.

You can also claim a deduction for the cost of using a car you own, lease or hire (under a hire-purchase agreement) when you drive:

• directly between separate jobs on the same day – for example, travelling from your first job as carpenter to your second job as a TAFE teacher
• to and from an alternate workplace for the same employer on the same day – for example, travelling between separate work sites for your employer
• from home directly to an alternate workplace – for example, travelling from home to complete a quote at a client's premises that isn't your regular work location.

You can't claim car expenses for a car you use under a salary sacrifice or novated lease arrangement. This is because it's usually your employer leasing the car from the financing company and making it available for your use. You can however claim additional work-related expenses you incur that are associated with your work use of the car, such as parking and tolls.

To claim a deduction, you must keep records of your car use. You can choose between the logbook method or the cents per kilometre method to work out your deduction.

If you use the logbook method, you need to keep a valid logbook to help you work out the percentage of work-related use along with evidence of your car expenses.

If you use the cents per kilometre method, you need to be able to show how you work out your work-related kilometres. You also need to be able to show that those kilometres were work-related.

To claim a deduction in your tax return, include the amount of your claim at Work-related car expenses. Use the Work-related car expenses calculator to help you work out the amount you can claim as a deduction.

If you claim your work-related car expenses using one of the above methods, you can’t claim any further deductions in the same tax return for the same car. For example, petrol, servicing, and insurance costs.

You can't use the cents per kilometre or logbook methods to work out your claim for a:

• motorcycle
• vehicle with a carrying capacity of one tonne or more (such as a ute)
• vehicle that can transport 9 passengers or more (such as a minibus).

For these vehicles, you can claim the actual expenses you incur for your work-related travel. This includes costs such as fuel, oil, insurance and loan interest along with the decline in value of the vehicle. You must keep records to show your work-related use of the vehicle. Although you aren't required to keep a logbook, it is the easiest way to calculate your work-related use of the vehicle.

To claim a deduction for actual expenses you incur for a vehicle not defined as a car, include the amount at Work-related travel expenses.

 

 

 

 

 

 

Child care

You can't claim a deduction for the cost of child care (including school holidays and before and after school care) when you're working. It's a private expense, and the expenses have no direct connection to earning your income.

Clothing and uniform expenses (including footwear)

With a few exceptions, clothing can't be deducted as a work-related expense.

You can't claim conventional clothing (including footwear) as a work-related expense, even if your employer requires you to wear it and you only wear these items of clothing at work.

'Conventional clothing' is everyday clothing worn by people regardless of their occupation – for example, jeans or business attire.

You can claim a deduction for costs you incur to buy, hire, repair or replace clothing, uniforms and footwear you wear at work if it's in one of the following categories:

• protective – clothing with protective features and functions to protect you from specific risks of injury or illness at work. For example, steel-capped boots, fire-resistant clothing, or overalls that protect conventional clothing. Conventional clothes you wear at work are not regarded as protective clothing as they lack protective qualities designed for the risks of your work. This includes jeans, drill shirts, shorts, trousers, socks, closed shoes.
• occupation-specific – clothing that distinctly identifies you as a person with a particular profession, trade or occupation. For example, a judge's robes or a chef's chequered pants. Items traditionally worn in a profession are not occupation-specific where the clothing is worn by multiple professions.
• a compulsory uniform – clothing that your employer strictly and consistently enforces you wear by workplace agreement or policy and distinctly identifies either
  • you as an employee working for a particular employer
  • the products or services your employer provides
• a non-compulsory uniform – clothing that your employer registers on the Register of Approved Occupational Clothing and you wear the uniform at work.

You can't claim a deduction if your employer buys, repairs or replaces your clothing.

 

Drivers licence

You can't claim a deduction for the cost to get or renew your drivers licence, even if you must have it as a condition of employment. This is a private expense.

You can claim a deduction for additional costs you incur to get a special licence or condition on your licence to perform your work duties. For example, the cost you incur to get a heavy vehicle permit.

Fines and penalties

You can't claim a deduction for any fines or penalties you get when you either travel to work or incur during work. Fines may include parking and speeding fines or penalties. For example, a fine you receive for parking illegally outside your worksite.

First aid courses

You can claim a deduction for the cost of first aid training courses if you are both:

• a designated first aid person
• need to complete a first aid training course to assist in emergency work situations.

You can't claim a deduction if your employer pays for or reimburses you for the cost of the course.

For more building and construction employee expenses, see:

• Building and construction employee expenses G–O
• Building and construction employee expenses P–S
• Building and construction employee expenses T–W