ato logo
Search Suggestion:

Engineer expenses G–O

Details on claiming common engineer expenses.

Last updated 2 June 2024

Glasses, contact lenses and anti-glare glasses

You can't claim a deduction for prescription glasses or contact lenses, even if you need to wear them while working as these are private expenses.

You can claim a deduction for the cost of protective glasses if you wear them to reduce the real and likely risk of illness or injury while working as an engineer. Protective glasses include anti-glare or photochromatic glasses, sunglasses, safety glasses or goggles.

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

Example: protective goggles

Meena is a chemical engineer. Meena wears protective goggles when she is working to ensure her eyes are not damaged by chemicals. Meena's employer does not provide her with goggles so she buys a pair for $49.

Meena can claim a deduction of $49 for the goggles she buys. The goggles protect her eyes from damage while she is carrying out her duties.

End of example

Insurance of tools and equipment

You can claim a deduction for the cost to insure your tools and equipment to the extent that you use them for work-related purposes.

Laundry and maintenance

You can claim a deduction for the costs you incur to wash, dry and iron clothing you wear at work if it's:

  • protective (for example, a hi-vis jacket)
  • occupation specific and not a conventional, everyday piece of clothing such as jeans or general business attire
  • a uniform either non-compulsory and registered by your employer on the Register of Approved Occupational Clothing or compulsory.

This also includes laundromat and dry-cleaning expenses.

We consider that a reasonable basis for working out your laundry claim is:

  • $1 per load if it only contains clothing you wear at work from one of the categories above.
  • 50c per load if you mix personal items of clothing with work clothing from one of the categories above.

You can claim the actual costs you incurred for repairing and dry-cleaning expenses.

If your laundry claim (excluding dry-cleaning expenses) is $150 or less, you don't need to keep records, but you will still need to calculate and be able to show how you worked out your claim. This isn't an automatic deduction.

Example: laundry expenses uniform and conventional clothing

Joselyn is an electrical engineer and is required to wear shirts embroidered with her employer's logo whilst at work. Her employer also requires her to wear black drill pants.

Joselyn can claim a deduction for the laundering of her work shirts as the logo makes them unique and distinctive. However, she can't claim a deduction for the cost to launder her drill pants even though she only wears them to work. They are conventional in nature and don’t have a logo or other feature that is unique and distinctive.

Joselyn washes and dries her embroidered shirts and drill pants in a separate load of washing twice a week. She can only claim 50c per load as her embroidered shirts are washed with her drill pants (conventional clothing).

Jocelyn worked for 40 weeks of the income year and calculates her laundry claim as follows:

Number of claimable laundry loads per week × number of weeks worked = total number of claimable laundry loads

2 × 40 = 80

Total number of claimable laundry loads × reasonable cost per load = total claim amount

80 × $0.50 = $40

As her total claim for laundry expenses is under $150, Joselyn doesn't have to provide written evidence of her laundry expenses. However, if asked, she will still be required to explain how she calculated her claim.

End of example

Licences, permits and cards

You can't claim the cost of getting your initial licence, regulatory permit, cards or certificates in order to get a job. For example, a forklift licence.

You can claim a deduction for the additional costs you incur to get or renew these expenses in order to continue to perform your work duties. For example, if you need to have a forklift licence to get your job, you can’t claim the initial cost of obtaining it, however you can claim the cost of renewing it during the period you are working.

Meal and snack expenses

You can't claim for the cost of food, drink or snacks you consume during your normal working hours, even if you receive a meal allowance. These are private expenses.

You can claim:

  • overtime meal expenses, but only if you buy and eat the meal while you are performing overtime and you receive an overtime meal allowance under an industrial award
  • the cost of meals you incur when you are travelling overnight for the purpose of carrying out your employment duties (travel expenses).

Newspapers and other news services, magazines and professional publications

The cost of newspapers, news services and magazines are generally private expenses and not deductible.

You can claim a deduction for the cost of buying or subscribing to a professional publication, newspaper, news service or magazine if you can show:

  • a direct connection between your specific work duties and the content
  • the content is specific to your employment and is not general in nature.

If you use the publication for work and private purposes, you can only claim the portion related to your work-related use.

Overtime meal expenses

You can claim a deduction for the cost of a meal you buy and eat when you work overtime, if all of the following apply:

  • you receive an overtime meal allowance under an industrial law, award or agreement
  • the allowance is on your income statement or payment summary as a separate allowance
  • you include the allowance in your tax return as income.

You can't claim a deduction if the allowance is part of your salary and wages and not included as a separate allowance on your income statement or payment summary.

You generally need to get and keep written evidence, such as receipts, when you claim a deduction. However, each year we set an amount you can claim for overtime meal expenses without receipts. We call this the 'reasonable amount'. If you receive an overtime meal allowance, are claiming a deduction and spent:

  • up to the reasonable amount, you don't have to get and keep receipts
  • more than the reasonable amount, you must get and keep receipts for your expenses.

In all cases, you need to be able to show:

  • you spent the money
  • how you worked out your claim.

Example: overtime meal expenses

Ash, an aeronautical engineer, completes his 8-hour shift and is asked to work for an additional 3 hours. He is given a meal break and paid an overtime meal allowance of $25 under his enterprise bargaining agreement. Ash buys and eats a meal costing him $14 during his overtime which is less than the Commissioner's reasonable amount for the relevant income year.

At the end of the income year his income statement shows he received $25 for his overtime meal allowance. In his tax return, Ash correctly declares the $25 allowance and claims a deduction of $14. This is the amount he actually spent on his overtime meal.

The amount Ash is claiming as a deduction is less than the commissioner's reasonable amount so Ash doesn't have to keep written evidence. However, he will need to be able to show how he works out his deduction and that he spent the money.

End of example

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?

For more engineer expenses, see:

 

QC22571