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6 TOP DEDUCTIONS FOR HOSPITALITY WORKERS

Tax Related

Whether you are a chef, waitress, bartender, venue manager, event manager, barista, mixologist, and so on, you have a large list of deductions you can claim just because you work in the hospitality industry. Check out what deductions you can claim.

1)Meal expenses  

You can claim for overtime meal expenses, when you are working overtime or when you receive an ‘overtime meal allowance’.This amount needs to be reasonable.

On the other hand, you can’t claim expenses for meals eaten during a normal working day, even if you receive an allowance to cover the meal expenses.  

Also, if the amount for overtime meals is part of your salary, then is going to be taxed as part of your income and is not considered as an ‘overtime meal allowance’, so you can’t claim it.

Don’t forget to have written evidence and keep all the receipts for overtime meals.

2) Clothing expenses

You can claim deductions for these work-related clothing expenses:

  • Purchase or rent of compulsory uniforms and corporate wardrobes. For example, if you are a chef, you can claim your chef’s hat, shirt and pants.
  • Single items of distinctive clothing such as a jumper, shirt or tie with the employer’s logo, if it is compulsory for you to wear it at work.
  • A non-compulsory uniform your employer has registered with AusIndustry.
  • Protective clothing (protective footwear, gloves, aprons)
  • The cost of washing, drying and ironing your work clothing as laundry expenses.
  • Clothing repairs

You must know that you can’t claim conventional clothing such as a plain white shirt, or everyday footwear such as casual or running shoes, as the wearing of these items is not limited to your workplace.

3) Car expenses

To claim work-related car expenses you need to own the car and pay for its running costs. The expenses you can claim are:

  • Work-related car expenses such as deliveries or picking up equipment from one venue to another.
  • The cost of travelling between two workplaces (two separate jobs and two workplaces for the same employer).
  • The cost of taxis, short-term car hire, tolls and parking fees if costs are necessary to your income-earning activities. (net of any reimbursement yo may have received from your employer).

On the other hand, you can’t claim expenses for regular trips from home to your workplace. Nevertheless, there are some exceptions:

  • If your home is considered a base of employment, you commence work at home and travel to another workplace, and vice versa.
  • If between home workplace and your other job you go to an alternative workplace.
  • If you carry bulky tools to and from various work locations because there is no secure storage space at your work.

Work out your work-related car expenses with us. check out our blog ‘work-related car expenses’ and contact us to  help you calculating your car expenses.

4) Self-education expenses

You can claim self education and training expenses if are directly related to your current position or your income producing activities:

  • Tuition fees
  • Seminars, formal courses
  • Books and equipment purchased for the study (textbooks, software, etc.)
  • Travel costs
  • Associated phone and internet fees
  • Accommodation and meals (if away from home overnight)

You can’t claim self-education expenses if your intention is to get a new job or lead to another income earning activity, even if the new role is within the same company.

5) Tools and equipment expenses

As long as it’s used in your job, you can claim the following equipment:

  • Purchase costs of equipment up to $300 (chef’s knives, cooking utensils, tablet, computers, cocktail mixers, tools).
  • Depreciation of equipment costing over $300
  • Repair and maintenance costs of work related equipment.
  • Leasing costs of equipment used in your job.
  • Interest on loans taken out to purchase work related equipment.

keep always record of the percentage the equipment was used for work purpose.

6) Other expenses

More expenses you can claim as a hospitality worker are:

  • Gaming licence: The cost of renewing. You cannot claim the initial cost.
  • Hiring equipment: Such as a PA system or extra chairs for a function.
  • The cost of purchasing hospitality related journals.
  • Work-related phone calls
  • Union and professional membership renewals fees.

More information

Don’t forget to keep all your records and receipts of your expenses. We recommend you to take pictures of your receipts, as is a safe way to keep your information. Precent can help you to determine your work-related expenses as a hospitality worker. Please contact us at [email protected], or call us to (+ 61) 2 8317 1281.