What you can and can’t claim on your tax returns as a hospo worker

Jun 29, 2023

Ah, tax season—the exhilarating time of year when we all gather around our calculators and dance with delight as we wrestle with receipts and spreadsheets 🫠. Let's face it, lodging your tax returns isn’t a very exciting task, but it does mean you get some money back in your pocket 🥳, so fear not, we’re here to turn this mundane chore into a whimsical journey to help make lodging your tax returns as easy as possible this year. 

For the basics on completing your tax returns and the different three methods of lodging, see here. 

If you’re lodging your own tax return, you need to lodge it by Tuesday 31st October. If you choose to use the services of a registered tax agent, they will generally have special lodgment schedules and can lodge returns for clients later than 31 October, but you need to engage them before 31 October.

What you can and can’t claim in your tax returns
Let’s talk about the most common tax deductions and point out a few common mistakes. We’ll help make sure you get it right

Clothing
You can claim a deduction for the cost of buying, hiring, laundering and repair of: 

• Uniforms (anything with a logo or items that form part of a compulsory uniform) 
• Protective Clothing (eg, aprons, protective boots if required) 
• Work specific clothing (eg Chef’s checked pants, chefs hats) 

 

You can’t claim a deduction for any plain clothing worn at work, even if it’s a part of your ‘uniform’ (eg, plain white tops or black shoes), for tax purposes, these items aren’t limited to your workplace. You also can’t claim a deduction for hairdressing, cosmetics, hair and skin care products, even if your employer expects you to be well groomed. All grooming products are private expenses - plus you really should be brushing your hair guys! 

Tools and Equipment
You can claim a deduction for the cost of the purchase of tools and equipment you are required to use for work, eg chef knives.
But you can’t claim a deduction relating to any private use of the equipment or if the tools and equipment are supplied by your employer or another person.

If a tool or item of work equipment used for work:

• Cost more than $300 – you claim a deduction for the cost over a number of years (depreciation)
• Cost $300 or less – you can claim an immediate deduction for the whole cost.

 
You also can claim a deduction for the cost of repairing tools and equipment for work. If the tools or equipment were also used for private purposes, you cannot claim a deduction for that part of the repair cost.

Car expenses 
You can claim a deduction when you:

• Drive between separate jobs on the same day – eg travelling from your job as a waiter to a second job as a cleaner.
• Drive to and from an alternate workplace for the same employer on the same day – eg. travelling from the restaurant you work at to a catering function.

 

You can’t claim deductions for your trips to and from work. 
If you claim car expenses, you can use the logbook method or the cents per kilometre method to calculate your deduction.

Self-education expenses
You can claim a deduction for self-education expenses if your course relates directly to your current job, e.g. barista course if you are working in a coffee shop. For this, you can claim deductions on tuition/tuition fees and books and equipment purchased for the study (test books, software etc.)
You can’t claim a deduction if your study is only related in a general way or is designed to help get you a new job, e.g. you can’t claim the cost of study to enable you to move from being a food delivery driver to being a chef.

Other common deductible work-related expenses
Other expenses you can claim a deduction for include:

• The work-related portion of phone expenses if you have to make phone calls or send texts for work
• Union and professional association fees
• Technical or professional publications
• Renewing your special employee or gaming licence. You cannot claim a deduction for the cost of getting your initial licence.

 

For more detailed information, see the ATO page ‘Hospitality industry employees – income and work-related deductions’ 

Other tips for doing your taxes:

• Working two jobs? See here for info on how much tax you should be paying
• Doing your first tax return? Here’s everything you need to know

 
Want to work at some of the best hospo venues? Check out available jobs here & don't forget to sign up for job alerts, to know first when they need some extra Rockstar Staff! Sign up for job alerts here.