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Tax Deductions for Hospitality Workers

tax deductions for hospitality workersMembers of the hospitality industry, including waiters, bartenders, chefs, kitchen hands and other professionals have a number of industry-specific tax deductions available to them. We know that shift-work, late nights, early starts and the pressure of the industry make it difficult to get your taxes in order. To help the people that provide us with so many good times, we’ve compiled this list of tax deductions to ensure you don’t miss out on anything you’re entitled to this tax time.

Tax Deductions for Hospitality Workers: Meals and Travel

  • The cost of travelling between your workplace and home is a private expense and cannot be claimed. You can, however, claim the cost of travelling between two workplaces, including two workplaces for the same employer and separate jobs.
  • If you are required to carry bulky tools to work, and there is no secure storage space for them at your workplace, you can claim the cost of travelling between your home and your workplace. You must own and maintain the car to claim car-related expenses.
  • If you are required to take taxis, hire a car, or pay tolls and parking fees to execute your income-generating activities, you can claim any associated costs.
  • If you are required to travel and stay overnight for work purposes, costs incurred for meals and accommodation can be claimed.

For more information on claiming motor vehicle expenses please, visit: Vehicle Tax Deductions.

Tax Deductions for Hospitality Workers: Work Clothing

  • If your work uniform contains a logo or is part of a compulsory uniform, you can claim expenses incurred in purchasing this as a tax deduction.
  • Occupation-specific clothing, such as a chef’s checked pants or a dish hand’s rubber apron can be claimed.
  • Protective clothing, such as fire-resistant gloves, steel-capped boots and aprons can also be claimed.
  • Cleaning and maintaining (repairing, altering, etc.) eligible clothing can be claimed.
  • If your expense claims are over $150, you need to provide written documentation of expenses incurred.
  • Conventional clothing such as a plain white shirt, trousers, runners etc are not eligible under ATO rulings and cannot be claimed as deductions.

For more information, visit Uniform Claims.

Tax Deductions for Hospitality Workers: Training

If you can demonstrate a direct connection between self-education or training and your current employment and income earning capacity then your self eductions expenses (Exc HECS/HELP Payments) may represent eligible deductions. However, if the training is designed to obtain a new job or undertaken prior to your employment then it the expense cannot be claimed.

  • The following expenses can be claimed:
  • Textbooks
  • Stationary
  • Student union fees
  • Course fees
  • Certain travel expenses

For more information, visit Self-Education Claims.

Tax Deductions for Hospitality Workers: Work Equipment

  • For work-related equipment of less than $300, you can claim an immediate deduction, for equipment costing more than $300 you can claim for depreciation in value of the equipment over a number of years.
  • If you use the equipment at work and at home, you need to apportion your claim to reflect the percentage it is used for income-earning activities.
  • The cost of repairing work-related equipment can also be used as a tax deduction.

Tax Deductions for Hospitality Workers:  Other Expenses

In addition to the expenses listed above, eligible hospitality workers can also claim the following expenses incurred in relation to :

  • Costs associated with purchasing industry-related publications
  • Union membership renewal fees, but not the sign-up fee.
  • Conference and seminar fees
  • The purchasing of reference books
  • Telephone and internet fees (for the work-related portion only)
  • Home office costs when required to undertake work activities at home.
  • Tax agent fees
  • Donations to registered charities
  • Income Protection Insurance

Visit our Typical Tax Deductions page for more general expenses deductions.

We understand that hospitality tax claims can be a little complicated and that’s why we created our fast, easy and affordable online tax return submission service where you have access to professional support and advice from the comfort of your home.  The process usually only takes 20 minutes, you’ll get your return in 10-14 days, and your return will be checked over by one of our talented tax agents before it is submitted to the ATO. Contact OTA today.

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