The ATO offers a number of deductions for electricians on this year's tax return. Rather than wasting your time searching for all possible deductions, we've compiled a list of items for your consideration.
A majority of the tax benefits come in the form of tax deductions for out-of-pocket expenses you incur throughout the course of the year that aren't reimbursed by your employer.
Tax Deductions for Electricians: Motor Vehicle, Travel and Accommodation
You may claim the cost of your personal car when it is used for work purposes, such as travel to meetings, conferences, or training that is not held at your usual place of work, or to see clients. In order to provide an estimate of how many kilometres were driven, you need to keep a journal of your trips if you plan on claiming the costs associated with the use of your personal vehicle.
It is only possible to claim travel costs between home and work if you:
Work requires you to carry bulky equipment hat cannot possibly be stored
Multiple locations where you work, e.g. multiple offices
Your primary place of work is your home
The cost of travel between two jobs or two workplaces is deductible.
During the course of your employment, you can claim parking fees, bridge tolls, taxi fares, and bus fares.
When it is unreasonable for you to return home, you can claim the full amount of overnight travel expenses. When you do not relocate to carry out your duties or you live far from your home while working, you cannot claim overnight travel expenses. All expenses (including gasoline, train, plane and ferry tickets) are claimable, including meals, lodging, incidentals and travel expenses.
Tax Deductions for Electricians: Work Clothing
The cost of buying and laundering any uniform item can be claimed. Uniforms that are compulsory for employees are those that are required to be worn by your employer, identified as such (have a logo) or registered with Aus Industry.
Additionally, you can claim the cost of any protective and safety clothing required, such as steel-capped boots, safety glasses, high visibility vests and gloves.
No claims can be made for conventional clothing or non-compulsory uniforms.
Tax Deductions for Electricians: Self-Education
Education expenses connected to your current job can be claimed to increase your skills and gain salary increases. Travel and associated expenses, along with fees and books, are all expense items.
No education can be claimed that helps you gain or maintain employment.
Tax Deductions for Electricians: Other Expenses
Equipment under $300 can be claimed immediately, and equipment over $300 can be claimed for decline in value. If the equipment is used for both work and private purposes, you can claim a percentage of the cost or decline. You could claim 50% or 30% of the ladder use for both work and home.
In addition, you can claim interest charged on loans used to purchase work-related tools and equipment.
Calls you make for work can be claimed if you keep itemized bills.
Journals, magazines and periodicals related to your industry can be claimed as expenses.
Union and association renewal fees are deductible, but not the initial membership fee.
Working from home may be eligible for a deduction if you incur work-related expenses. Expenses for running the accounting office, like heating, cooling, lighting and depreciation of office furniture such as chairs and desks may be deducted at a rate of $0.52 per hour. Separate expenses can be claimed for things such as stationery, telephone, internet, computers, etc.
Feel free to contact us for any assistance you may require. At Instant Tax Refunds, we strive to provide high-quality service that constantly meets and sometimes exceeds our customers' expectations.