As many of our clients are teachers, Gotsis Accountingunderstand the range of work-related expenses that are often incurred by people working in the education industry. The extent to which they are allowable deductions is outlined below. Please note that you can only claim an expense if it is actually incurred. If it is an expense incurred partly for work and partly for private purposes, only the work related amount is an allowable deduction.
Following is a list of common work-related expenses that are deductible:
- A deduction is allowable for annual union or professional association fees, however, this does not include joining fees.
- The cost of attending relevant conferences, seminars and training courses is an allowable deduction.
- First aid courses is deductible if the teacher is the first aid person who must undertake training to assist in emergency situations at work, and if the cost is not met by the employer.
- Running expenses of a private study is an allowable deduction if used for work undertaken at home.
- If there is a direct link between self education and your current income-earning activities as a teacher then you can claim self education costs such as fees, travel, books and equipment.
- A deduction is allowable for Financial Institutions Duty that relates to the direct depositing of salary and wages into the employee teacher’s bank account, as a work-related cost. A deduction is not allowed for any other bank fees as a work related expense.
- Depreciation of a professional library for work-related use can be claimed as long as the reference material is directly connected to income-earning work.
- A deduction is allowable for the cost of buying or subscribing to journals, periodicals and magazines that have a content specifically related to your employment.
- A deduction is allowable for the costs incurred in school excursions, trips and camps only if those trips have an education benefit and are related to the curriculum or extra curricular activities of the school.
- Purchase of telephones, answering machines, mobile phones, pagers, beepers and other telecommunications equipment – the work-related portion of the rental cost or depreciation of the purchase price is deductible.
- Work-related call costs are an allowable deduction.
- Computers and software – a deduction is allowable on the cost of computers and related software if used for work-related reasons and purchased together. For software purchased separately, the deduction is allowable on the work related portion of the software in the year of purchase in full.
- Calculators and electronic organisers – a deduction is allowable for the work-related portion of depreciation on the purchase price.
- A deduction is allowable for depreciation of the work-related portion of the equipment cost. The equipment can be depreciated at a rate of 100% if its cost is $300 or less, or if its effective life is less than three years.
Teaching aids are deductible. These may include various stationery such as pens, pencils, stickers and paints; prizes to award achievements and to encourage students; cost of maintaining a classroom or school pet; jigsaws, story books, games and toys used by childhood, primary school or special education teachers; and whistles and stopwatches used by physical education employee teachers.