Tax Deductions

FAQs - Tax Deductions

Tools of trade that you use to earn your income can be replaced, insured, and repaired. The cost of any item over $300 must be depreciated (i.e. claimed over its useful life). What you can claim depends on what receipts you have kept and to what extent you use them to generate income. The amount you can claim without receipts is less than $300 if you are wondering what you can claim without receipts

It is generally not deductible to spend money on personal grooming and haircuts. There are exceptions for some taxpayers involved in the performing arts field.

As long as you identify yourself as an employee of that organization or working in a specific profession, compulsory uniforms are generally deductible. The requirement to wear certain colors isn't enough to make clothing deductible (for example, a waiter is required to wear black and white clothing), nor is the requirement to wear the store's own brand of clothing (these are still conventional clothes). It is also possible to deduct corporate wardrobes if certain conditions are met. AusIndustry must register the uniform design. You can also claim maintenance costs (laundry, dry cleaning, and repairs) if the clothing is deductible.

Even if your employer requires you to wear fashion clothing, it is not tax deductible. Even though the logo is a part of the design of the clothing, it doesn't identify you as an employee.

This is not a donation to the charity; rather, you are receiving something in return for your donation. It is not tax deductible to purchase an item from a charity.  Only donations to registered charities are tax deductible.

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