Tax Deductions For Disability Support Care Workers

If you work as a Disability Support Care Worker, here is a checklist of tax deductions you may be able to claim on your personal tax return.

TAX WARNING:   

• Vaccinations: The ATO’s view is a deduction is not allowable for the cost of vaccinations as a precaution for disability support care workers and nursing employees against contracting infectious diseases.

When Can a Disability Support Care Worker Claim for Car Expenses?

The cost of travel between home and your place of employment is usually considered private and not deductible.

There are several cases and circumstances where travel between home and employment is an allowable deduction:

• Transport of Clients–  A deduction is allowable for the cost of travel attributable to the transport of clients in the course of producing assessable income, for example, transporting clients to and from doctors’ appointments and client’s activities, etc. This is so, even if the travel begins at the employee Disability Support Care Workers’ home and ends at his or her regular place of employment. The cost of the total distance traveled (beginning at home and ending at school) is allowable.

• To the second job – A deduction is allowable for the cost of traveling directly between two workplaces – from one employer to another second job. This also applies to travel from work to a place of business where you are engaged in work-related activities.

• Between Work Places – A deduction allows the cost of travel from a nursing employee’s normal workplace to other workplaces. The cost of travel from the alternative workplace back to the normal workplace or directly home is also an allowable deduction.

• Home to Alternative Work Place – A deduction is allowable for the cost of travel from home to an alternative workplace. A deduction is also allowable for the cost of travel from the alternative workplace to the normal place of employment or directly home.

• Between Home and Shifting Places of Employment – A deduction is allowable for the cost of travel from home where you:  (a) do not work to any regular pattern; (b) there is no long term plan by which you can predict what will be required of you in the future; (c) there is no certainty as to the range of work locations you will attend over a period.

What Car Expenses Can a Disability Support Care Worker Claim?

• The cost of using your own car for work, including travel to attend meetings, attend training courses, pick up supplies, and driving between or around job sites (to claim for care costs, it is usually best to keep a diary record of the number of kilometers you travel during the year for work purposes and then we can calculate the amount of your tax deduction at the end of the year).

• The cost of parking, tolls, taxis, and public transport if you are required to travel to attend seminars, meetings, and training courses not held at your usual place of work (if you need to stay away overnight, you can also claim for the cost of all meals and your accommodation)

• The cost of bridge and road tolls paid while driving between your depot and your client’s depot (but NOT while driving to and from work)

• You can claim the cost of using your own car to travel to and from work, BUT only if you are required to carry bulky tools and equipment for your work AND there is no secure area to leave these items on-site overnight.
  

How Can Disability Support Care Workers Claim Car Expenses

The following is a checklist of the 2 different methods of claiming motor vehicle or car expenses:

• Set rate per Km;
• logbook method

Meals and Overnight Travel Away From Home

It is common for Disability Support Care Workers to sleep over at a client’s premises. The following is a summary with links on what can be claimed as a tax deduction:

• Overnight Travel Away From Home – the cost of buying overtime meals when you work overtime is an allowable deduction, provided your employer has paid you an allowance. Providing the deduction for overtime meals does not exceed the ATO’s reasonable allowance. Substantiation is not required.

• Overtime Meal Allowances – the cost of buying overtime meals when you work overtime, provided you have been paid an allowance by your employer (you can claim up to a maximum of $27.10 (2013 rate) per meal without having to keep any receipts, provided you can show how you have calculated the amount you spent – see Claiming Overtime Meal Allowance.

Keeping Records for Overnight Travel

The following tables explain what records you need to claim domestic or overseas travel expenses for accommodation, food, drink, or incidentals.

If you did not receive a travel allowance:
	Domestic travel		Overseas travel
	Written evidence	Travel diary	Written evidence	Travel diary
Travel less than 6 nights in a row	Yes	No	Yes	No
Travel 6 or more nights in a row	Yes	Yes	Yes	Yes

If you received a travel allowance and your claim does not exceed the reasonable allowance amount:
	Domestic travel		Overseas travel
	Written evidence	Travel diary	Written evidence	Travel diary
Travel less than 6 nights in a row	No	No	No*	No
Travel 6 or more nights in a row	No	No	No*	Yes

*Regardless of the length of the trip, written evidence is required for overseas accommodation expenses but not for food, drink, and incidentals

If you received a travel allowance and your claim exceeds the reasonable allowance amount:
	Domestic travel		Overseas travel
	Written evidence	Travel diary	Written evidence	Travel diary
Travel less than 6 nights in a row	Yes	No	Yes	No
Travel 6 or more nights in a row	Yes	Yes	Yes	Yes

Agency Costs

• The hospital, clinic, etc., usually meet agency commissions – A commission paid to a nursing agency and a deduction is not allowable to the nursing employee. If the nursing employee actually incurs the cost, then a deduction is allowable.
• Agency fees – A deduction is not allowable for upfront fees, joining fees, or search fees paid to a nursing agency.
• Agency Disability Support Care Workers – A deduction is not allowable for the cost of obtaining employment through an agency, including preparation of resumes, calls to the agency, as well as telephone/mobile rental, beepers, pagers, and answering machines used for contacting the agency. A deduction is also not allowable for the cost of travel to and from employer hospitals, clinics, etc. A deduction may be allowable where the agency actually employs a nursing employee.

Work Clothing

A deduction is allowable for the cost of buying, renting, or replacing clothing, uniforms, and footwear (‘clothing’) if:

• the clothing is protective in nature
• the clothing is occupation-specific and not conventional in nature – NOTE that a traditional Disability Support Care Workers uniform is no longer considered deductible as it is not commonly used these days
• the clothing is a compulsory uniform and satisfies the requirements of Taxation Ruling IT 2641 – for example, corporate wardrobe
• expenditure on shoes, socks, and stockings is considered of a private nature. Even when these items are worn at the employer’s request, their cost will only be deductible in limited circumstances. To qualify for the deduction, the items must first form an integral part of a distinctive and compulsory uniform, the employer’s components in its expressed uniform policy or guidelines. In addition, the employer’s uniform policy or guidelines should stipulate the characteristics of the shoes, socks, and stockings that qualify them as a distinctive part of the compulsory uniform, e.g., color, style, type, etc. The uniform wearing must also be strictly and consistently enforced, with breaches of the uniform policy giving rise to disciplinary action. In strict compulsory uniform regimes, expenditure on shoes, socks, and stockings is likely to be regarded as work-related rather than private. In nature, the clothing is a non-compulsory uniform or wardrobe that has been entered on the Register of Approved Occupational Clothing of the TCFDA. Taxpayers can obtain details of registered corporate wardrobes either from your employer or from the Department of Industry directly on 03 9268 7944. NOTE, there is no longer a public register available on the web.
• A deduction is allowable for the cost of cleaning, laundry, and maintaining clothing that falls into one or more of the categories of deductible clothing above.

Training

• The cost of work-related short training courses (for example, first aid, OH&S, truck and heavy equipment driving, vehicle maintenance) that a University or TAFE does not run. You can claim for the cost of any course fees, books, stationery, Internet connection, telephone calls, tools or equipment, and traveling to and from the course. You can also claim any accommodation and meal expenses you have to pay if you are required to stay away overnight for your course.
• The cost of self-education courses run by a University (not including HECS/HELP fees) or TAFE directly relates to your current work. If you are studying, you can also claim the cost of books, stationery, equipment and travel required for your course.

Work Tools and Equipment

• The cost of buying and repairing equipment you use at work (including tools, CB radio, portable refrigerator, sleeping bag, electronic organizers, laptop computers, and mobile phones)
• The cost of any truck repairs, maintenance, spillage, or cleaning (provided you are not reimbursed by your employer for these costs)
• The cost of any materials or supplies that you buy for use at work (for example, safety gear, first aid equipment, backpack, or belt bag)
• The cost of stationery, diary, logbooks, work bag or briefcase

Other Allowable Work Expenses

• Parking – A deduction is allowable for parking fees (but not fines) and tolls if the expense is incurred while traveling:
  (a) between two separate places of work;
  (b) for self-education purposes (if the self-education expenses are an allowable deduction);
  (c) in the normal course of duty and the traveling, expenses are allowable deductions.
• The cost of annual memberships or union fees
• The cost of Disability Support Care Workers tickets such as blue cards and other practicing certification
• Computers, calculators and electronic organizers – A deduction is allowable for the work-related portion of depreciation on the purchase price of these items.
• The cost of work-related books, magazines, and journals
• Conferences, seminars, and training courses – A deduction is allowable for the cost of attending conferences, seminars, and training courses to maintain or increase a nursing employee’s knowledge, ability, or skills in the nursing industry. There must be a relevant connection with the current work activities of the nursing employee
• First aid courses – A deduction is allowable if a nursing employee must undertake first aid training to assist in emergencies. If the cost of the course is met by the employer or is reimbursed to the nursing employee, no deduction is allowable
• Self-education expenses – A deduction is allowable for the cost of self-education if there is a direct connection between self-education and the current income-earning activities. Self-education costs can include fees, travel, books, and equipment
• The cost of work-related mobile or home telephone calls and rental (you should keep a diary record of the number of phone calls you make for work for one month, and then we can use that to estimate your usage for the whole year)
• Watches – A deduction is allowable for depreciation and maintenance of a Disability Support Care Workers’ fob watch to the extent of the work-related use of the watch. A deduction is not allowable for the cost and maintenance of a conventional wristwatch
• The cost of work-related internet connection fees (you can only claim the proportion of your monthly fees related to work use, including emailing, research relating to your job, and research for your training courses).

NOT ALLOWABLE DEDUCTION – Vaccinations: A deduction is not allowable for the cost of vaccinations as a precaution for nursing employees against contracting infectious diseases.

General Expenses

There are some tax deductions that all employees can claim on their personal tax returns:

• The amount of any donations to registered charities (as long as you haven’t received anything in return for your donation, such as raffle tickets or novelty items)
• The cost of bank fees charged on any investment accounts
• The cost of income protection or sickness and accident insurance premiums (this type of insurance covers you if you hurt yourself (including when you are not at work) or become sick and unable to work. It will pay you your normal wage until you are fit to return to work – if you don’t have this insurance, you should see a financial adviser or ask us, and we will refer you to someone who can organize it for you. It is definitely worthwhile)
• Your tax agent fees (the amount you pay to your accountant to prepare your tax return each year)
• The cost of traveling to see your tax agent (you can claim the cost of traveling to see your accountant have your tax return prepared. You should record the number of kilometers you travel and any other incidental costs such as parking, meals, accommodation, etc.)

We suggest that you keep receipts for all purchases that are work-related, even if they are not listed above. That way, when we prepare your tax return, we can decide whether you are allowed to claim a tax deduction for them or not.