NDIS Workers and Tax
As an independent support worker, you are operating your own business. That means you’re your own boss, which is wonderful, but it also means managing your tax and financial obligations. It's not the most exciting thing to do, but it's important to stay on top of it.
As a disability support worker you have a range of tax deductions available to you. Make sure you’re claiming everything you legally can.
Support worker tax deductions
Often, Support Workers don't realize what tax deductions they are entitled to. The process is actually very simple, even if you're a newbie!
Independent Support Workers need to be aware of a few things before claiming tax deductions:
- This deduction wasn't reimbursed to you.
- You must have a record of any expenses you want to claim. E.g. receipts or invoices. The ATO’s myDeductions app is a free and easy way to keep track of all your potential Support Worker tax deduction expense records.
- Only work-related expenses can be claimed. Expenses associated with personal activities cannot be deducted.
Support workers' self-education
You can claim the costs of any training or courses you take that are directly related to your work as a disability support worker.
These might include:
- Travel to and from the course
- Internet connection and telephone calls
- Tools and equipment
- Any accommodation that you have to pay to attend a course. For example, if you live in a regional area and had to travel to a major city to complete the course or training, you can claim these travel and accommodation expenses.
- Courses and training examples include CPR and First-Aid, OH&S, Certificate III in Individual Support, Certificate IV in Disability Support, Understanding Mental Health and Working with Physical Disabilities.
Car Expenses for Support Workers
Traveling between one place of work and another can be claimed as a tax deduction for Disability Support Workers. You might be able to claim fuel and mileage expenses if you drive from one client's house to another.
You cannot claim your drive from home to work, but you can claim the time you spent helping your client get to an appointment or activity. In most cases, mileage and additional fees, such as tolls and parking, can be claimed.
You can either use the logbook method or the 'cents-per-kilometer' method to claim your car expenses.
Other Travel Expenses for Support Workers
If you're a Disability Support Worker, you can claim a tax deduction for public transport expenses if you're travelling with a client to an appointment or activity, or between two clients' homes.
You can likely deduct expenses related to accommodation, food, and transportation that were not refunded by the NDIS Participant client if you go away with them on a work-related or holiday trip.
Consumables for Support Workers
You can claim stationary, materials, and personal protective equipment (PPE) relating to activities with clients as long as you are not reimbursed by them.
- Art equipment
- Face masks and hand sanitiser
- Learning equipment such as sensory toys.
Other support worker tax deductions:
- Journals, magazines, and books cost money.
- Checks such as National Police Checks, NDIS Worker Screening Checks, and Working with Children Checks (if you require any other checks) will cost you.
- Any donations you contribute to registered charities.
- Any premiums for income protection insurance (unless paid via Super)
- Tax and Accounting Fees
Thank you for reading!
Should you have any queries in regards to the above please contact our office on (03) 9728 1448
The TAS Team
3/653 Mountain Highway, Bayswater VIC 3153
The information contained in this publication is for general information purposes only, professional advice should be obtained before acting on any information contained herein. The receiver of this document accepts that this publication may only be distributed for the purposes previously stipulated and agreed upon at subscription. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.