As a teacher you are entitled to a wide range of tax deductions. If it is related to your work in some way it is most likely deductible. In the article below we go over some common items you can claim.
MEALS AND TRAVEL
If you are required to travel to attend seminars, meetings, training courses or excursions you can deduct the cost of transportation. This includes public transport, parking charges, tolls and taxis. If you need to stay somewhere overnight you may also claim the cost of your accommodations and meals.
If you use your own car for work purposes you may also claim a deduction for the number of kilometers you traveled. It is always best to keep a journal of your work related travel during the year so you can make an accurate deduction. Deductible travel could include picking up supplies for your class, attending meetings, training courses or conferences, excursions, cultural events (which relate to your teaching obligations) and travel between multiple places of work.
WORK CLOTHING
The cost of buying compulsory work clothing is deductible as long as it has the schools logo on it. This could include shirts, pants, skirts, jackets and jumpers.
Expenses related to laundry or dry cleaning of your work clothing are also deductible.
The cost of protective equipment if it is required for your job. Items such as gloves, masks, steel capped boots, gum boots, goggles, lab coats, art smocks, art aprons and sun protection items including sunglasses, hats and sunscreen are eligible. In general you may deduct any protective item or piece of protective clothing bought if it is required to be worn by the school due to potential dangers in your work environment.
TRAINING AND CLASSES
As long as it is not run by a University or TAFE, the cost of short training, in-service or professional development courses related to your work are deductible. You may also include the cost of traveling to and from these courses including accommodation and meal expenses if you are required to stay overnight.
You may claim the cost of self-education courses run by a University or TAFE provided they are directly related to your CURRENT work. Any HECS/HELP fees attached to these courses ARE NOT deductible. You may also claim the cost of books, stationery, equipment and travel to these courses or travel required for your course if you are studying.
WORK TOOLS AND EQUIPMENT
The cost of any equipment you use for work can be deducted, as well as any repair costs for these items. Deductions could include tools, musical instruments, laptops and mobile phones or art canvases.
Supplies and materials you purchase are also deductible as long as they are only used for work. Teaching aids, prizes, stationary, work bags and briefcases are all eligible.
OTHER TEACHER RELATED DEDUCTIONS
As a teacher you have access to a wide variety of expenses related to your work such as:
- Annual association membership fees or union fees (such as the Teachers Federation).
- Work-related magazines or journals.
- Newspapers purchased for teaching purposes.
- Any books and professional library additions directly related to your work.
- Stop watches, repairs and batteries (specifically stop watches and other timers you may need, ordinary wrist watches do not count!)
- Expenses relating to organising and attending school excursions, trips or camps. Staff dinners and other social functions are not eligible however.
- Mobile or home telephone calls may be deducted. To make this deduction, keep a journal of your calls for at least one month to estimate your usage for the full year.
- A portion of your work related internet fees can be claimed if you email or research from home. Again, a record should be kept to determine what percentage of internet usage is for work and for personal use.
- A portion of TV and rental fees are deductible if you spend time watching TV for teaching purposes. Like phone and internet deductions, keep a record of how many hours you spend watching work related content versus content for personal enjoyment.
- You may deduct any expenses related to a home office if you are required to work from home. A journal should be kept of how many hours per week you spend working from your home office to determine how much of your home office expenses you can deduct.
GENERAL EXPENSES
Here is a summary of general tax deductions all employees are entitled to:
- Donations to registered charities are deductible if you do not receive anything in return for your donations such as raffle tickets or novelty items.
- Any bank fees charged on investment accounts
- The costs related to income protection including sickness and accident insurance premiums. If you do not have this type of insurance, ask a financial advisor about your options. Income protection insurance will cover you financially if you are unable to work due to a sickness or accident and will pay you your normal wage until you are able to return.
- All expenses related to filing a tax return with a tax agent.
- The cost of travelling to the location of your tax agent, including km travelled and any other incidental costs like parking meal or accommodations if necessary.
To maximize your deductions simply keep your receipts for any and all work related purchases even if it is not specifically listed above. When our expert tax agents prepare your return they will include everything that is eligible for a deduction. For more information, or to talk to a qualified tax return agent about how you can maximize your deductions, give us a call and we will be happy to help!