As a teacher in Australia, you can claim numerous work-related expenses on your tax return. These deductions can help reduce your taxable income, ensuring you only pay tax on your net income.
To maximise your refund, it’s crucial to understand which expenses are deductible and how to claim them. This blog post will provide a detailed overview of what you can claim as a teacher.
Let’s get straight to the point
Australian teachers can claim work-related expenses on their tax returns to lower taxable income. Eligible deductions include classroom supplies, professional development costs, and certain travel expenses, like transporting students or working between multiple sites.
Home office expenses, such as electricity, internet, and office equipment, are deductible if you work from home. Teachers can claim specific work-related clothing, like compulsory uniforms or protective gear, and related laundry costs.
Union memberships and professional association fees are also tax-deductible. Keeping accurate records of these expenses is crucial for maximising your tax refund and staying compliant with ATO rules.
Work-Related Expenses: What Can You Claim?
1. Classroom Supplies and Resources
You often spend your money on classroom supplies and resources as a teacher. These expenses are generally tax-deductible as long as they are directly related to your teaching duties.
Examples of Deductible Classroom Expenses
- Stationery and Office Supplies: Pens, markers, paper, and notebooks used in your classroom.
- Educational Materials: Storybooks, posters, educational games, and maps.
- Classroom Decorations: Items used to create a conducive learning environment, such as posters or educational charts.
- Teaching Aids: Resources like flashcards, educational software, or subscriptions to teaching websites.
When claiming these expenses, ensure they are not for personal use. Only the work-related portion can be claimed if an item is used personally and professionally.
2. Professional Development and Self-Education
Investing in your professional development is essential for maintaining and enhancing your teaching skills. Fortunately, many self-education expenses are tax-deductible if they relate directly to your current teaching role.
Examples of Deductible Self-Education Expenses
- Course Fees: For classes, seminars, or workshops directly related to your teaching duties.
- Textbooks and Study Materials: Books, journals, and online materials necessary for your courses.
- Travel Expenses: If you travel to attend a professional development course, you can claim travel costs, such as public transport fares or car expenses.
- Stationery and Equipment: Items needed for your study, such as notebooks, pens, or a laptop.
For the course to be deductible, it must maintain or improve the specific skills or knowledge you require as a teacher or likely lead to increased income from your current employment.
3. Work-Related Travel Expenses
Not all travel expenses are deductible, but some specific travel related to your teaching role can be claimed.
When Can You Claim Travel Expenses?
- Transporting Students or Equipment: If you need to transport students to a school-related activity, such as a sports event, or if you transport bulky teaching equipment that cannot be left at school, you can claim these travel expenses.
- Travel Between Workplaces: If you work at more than one site or have to travel directly from one workplace to another (for instance, between different schools), you can claim the cost of this travel.
- Excursions and Camps: If you incur expenses for travel during a school camp or excursion that is part of your curriculum, these may be deductible.
Note: Commuting between your home and regular place of employment is generally not deductible.
4. Home Office Expenses
If you do some of your teaching or planning from home, you can claim some of your home office expenses.
What Home Office Expenses Are Deductible?
- Running Costs: This includes the cost of electricity for heating, cooling, and lighting your home office, as well as the decline in value (depreciation) of office equipment like computers and furniture.
- Phone and Internet Costs: If you use your phone or internet for work, you can claim some of these expenses.
- Office Equipment: Items such as desks, chairs, and computers may be claimed fully (if under $300) or depreciated over time.
5. Clothing and Laundry Expenses
Teachers often have specific clothing requirements that may be tax-deductible, but there are clear rules around what can and cannot be claimed.
What Clothing Expenses Are Deductible?
- Compulsory Uniforms: If your school requires you to wear a distinct uniform that identifies you as an employee, you can claim the cost of purchasing and maintaining it.
- Protective Clothing: If your job requires you to wear protective clothing, such as sun-protection gear, for outdoor duties, these items are deductible.
- Laundry Costs: The cost of washing, drying, and ironing eligible work clothing can be claimed, but you must keep detailed records if your claim exceeds $150.
Note: General or conventional clothing, such as business suits or sports attire for PE teachers, is not deductible, even if required by your employer.
6. Union and Professional Membership Fees
Memberships and subscriptions to teaching unions and professional organisations directly related to your employment are generally tax-deductible.
Examples of Deductible Fees
- Union Memberships: Fees paid to a teaching union.
- Professional Association Fees: These are subscriptions to professional bodies, such as the Australian Education Union (AEU) or subject-specific associations.
These fees are directly related to your ability to earn an income as a teacher, making them deductible.
7. Other Common Deductible Expenses
You can claim other work-related expenses, depending on your specific role and responsibilities.
Examples of Other Deductible Expenses
- First Aid Training: If you are your school’s designated first aid officer, the cost of your first aid training course is deductible.
- Sunscreen and Sunglasses: If your teaching duties require you to work outdoors, you can claim the cost of sun protection items like sunscreen, sunglasses, and hats.
- Work-Related Phone Calls: If you use your phone to make work-related calls, keep a log and claim a portion of your phone bill.
Record Keeping: Essential Tips
To successfully claim these deductions, keeping detailed and accurate records is crucial. The Australian Taxation Office (ATO) requires that you retain receipts, invoices, and other documentation for all deductible expenses.
Record-Keeping Tips
- Keep Receipts: Store all receipts for purchases related to your teaching expenses.
- Use a Diary: Maintain a diary to log work-related activities, such as travel, phone calls, and home office hours.
- Track Your Claims: Use the ATO’s myDeductions tool or another digital app to track your deductions throughout the year.
Conclusion
Understanding what you can claim on tax as a teacher can significantly reduce your taxable income, leading to a better tax refund. You can maximise your tax return each year by keeping detailed records and knowing which expenses are deductible.
Always consult with a tax professional if you need clarification on specific claims to ensure you are fully compliant with ATO guidelines.
FAQs
Can Teachers Claim Classroom Supplies On Tax?
Yes, teachers can claim the cost of items like stationery, books, and educational materials purchased for their students or classroom.
Are Professional Development Expenses Tax-Deductible For Teachers?
Absolutely! Fees for workshops, conferences, and training directly related to your teaching role are often tax-deductible.
Can Teachers Claim Work-Related Travel Expenses?
Travel expenses for work-related tasks, such as attending conferences or traveling between schools, can be claimed, excluding regular commutes.
Is Home Office Equipment Tax-Deductible For Teachers?
Teachers can claim a portion of home office expenses, like internet, utilities, and office furniture, if used for lesson planning or grading at home.
Can Teachers Claim The Cost Of Uniforms On Tax?
Yes, provided the uniform is required, has a school logo, or is protective (e.g., lab coats), these expenses can be claimed. Laundry costs may also apply.