TAX WARNING FOR NURSES AND AMBULANCE OFFICERS AND PARAMEDICS:

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

Car Expenses from Home to Work etc

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

There are a number of cases and circumstances where travel between home and employment is an allowable deduction:

• 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

• Transport of Patients–  A deduction is allowable for the cost of travel attributable to the transport of patients in the course of producing assessable income. This is so, even if the travel begins at the employee nurse’s home and ends at his or her regular place of employment. The cost of the total distance traveled (beginning at home and ending at work) is allowable.

• Between Work Places – A deduction is allowable for 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.

Agency Costs

• Agency commissions – A commission paid to a nursing agency is usually met by the hospital, clinic, etc 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 nurses – 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 a nursing employee is actually employed by the agency.

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 nurses 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 and, even when these items are worn at the request of the employer, their cost will only be deductible in limited circumstances. To qualify for a deduction, the items must firstly form an integral part of a distinctive and compulsory uniform the components of which are set out by the employer 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 being a distinctive part of the compulsory uniform, e.g., color, style, type, etc. The wearing of the uniform must also be strictly and consistently enforced, with breaches of the uniform policy giving rise to disciplinary action. It is only in strict compulsory uniform regimes that 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. Details of registered corporate wardrobes can be obtained 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

Meals and Travel  

• The cost of buying 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)
• The cost of meals and incidental expenses when you are required to stay away from home overnight for work (if you receive an allowance from your employer, you can claim the full amount of that allowance provided it is shown on your PAYG payment summary). If you didn’t receive an allowance, you should keep receipts to prove the amount you have spent on all meals and accommodation
• 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 parking fees, bridge and road tolls paid while driving the truck between your depot and your client’s depot (but NOT while driving to and from work)
• 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 car 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)