COMMON AUSTRALIAN DEFENCE FORCE DEDUCTIONS
The categories for deductions for Australian Defence Force personnel are nuanced and can be complicated to factor into a return if you are completing it without guidance from an accountant or tax specialist.
Austax can provide this expertise through their accountancy services. We maintain a strong understanding of Australian Defence Force members and the procedures for lodging their returns.
The below provides a listing of some of these claimable, work-related deductions, providing you paid for them and have not been reimbursed, that you have a receipt to provide purchase, and that the item/s are closely connected to your ability to earn your wages.
Car Expenses
You can’t claim a deduction for normal trips between your home and work. You can claim for travelling between alternate workplaces that’s not your regular workplace while still on duty – for example travel between army bases, travel to courses and travel on and around base.
You will need to provide a calculation of your work-related kilometres and show that the kilometres travelled were work-related.
Clothing Expenses
You can claim a deduction for military service uniforms such as:
- Military white, blue or khaki shirts with rank or other embellishments
- Standard matching trousers
- Regulation jumpers and jackets
- Official mess uniform
- Hats or caps with rank or other embellishments
- Camouflage shirts and trousers
- PT shirts that displays regimental crest
Items or accessories of a conventional nature eg. Underwear, hair accessories, sport shoes, shorts or t-shirts are not included. Similarly, everyday clothing required for protective operations when gathering intelligence is not an allowable deduction. Hairdressing or hair and skin care products, even though you may be expected to be well groomed, are classed as private expenses and can’t be claimed as a deduction.
Protective Clothing
Types of protective clothing and footwear that can be claimed as a deduction include:
- Steal cap boots
- Sunglasses, hats and sunscreens if you have to work in the sun for all or part of the day
- Protective Eyewear (does not include prescription glasses or contact lenses)
- High Visibility Vests and hard hats
You can’t claim a deduction for the cost of protective clothing your employer provides.
Laundry and Maintenance Expenses
You can claim a deduction for the cost of washing and dry cleaning uniforms. Any repairs and alterations to uniforms are also deductible. Conventional and everyday clothing cannot be included.
Mess Fees and Functions
You can claim a deduction for compulsory mess subscriptions. These are the yearly or monthly amounts paid whether you visit the mess or not.
You can’t claim a deduction for costs incurred in attending compulsory or non-compulsory mess functions. This includes functions such as dinners, dances and cocktail parties. Similarly, any conventional clothing that is required for these functions e.g. suits are not deductible either. The cost of travelling to and from mess functions are also not deductible.
Physical Training and Fitness Expenses
It is recognized that ADF members must maintain a high standard of general physical fitness. Expenses you incur in maintaining this standard of fitness (fitness courses, gym memberships and other health-related items) are generally private in nature so you can’t claim a deduction for these.
Tools and Equipment
You can claim a deduction for tools and equipment if you use them to perform your duties as an ADF member. For example – if you work as a mechanic for the ADF, you can claim the expenses you incur in purchasing spanners, socket sets, etc that are required to perform your duty as a mechanic.
If a tool or item of equipment cost more than $300, you can claim a deduction for the item over the life of the asset.
You can’t claim a deduction for tools or equipment that are supplied or reimbursed by your employer.
Field Equipment
Part of your duties as an ADF member is completing field training. Expenses incurred for field equipment are deductible on your tax return. These items include:
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Other Deductable Expenses
You may be able to claim a deduction for:
- Union Fees
- Subscriptions to trade, business and professional fees eg. APRA fees for nurses
- Stationery
- Income protection insurance
- Telephone and Internet usage
- Home office expenses
Medicare Exemption
As a member of the Australian Defence force you are entitled to receive an exemption from the Medicare Levy. A full exemption is available if you:
- Have no dependants or if all your dependants fall under an exemption category
- Have a dependant spouse (and or children) who earn a level of income that requires them to pay the Medicare Levy
- If you have dependant children who do not pay Medicare, and a spouse who is in an exemption category, either yourself or your spouse must elect to receive half the Medicare Exemption.
In cases where the above conditions are not met, you are entitled to a half Medicare Exemption for the days of the year during wich you qualify.
Overseas Forces Tax Offset
A special Overseas Forces Tax Offset is available to members of the Australian Defence Force if you served in a specified overseas locality as a member of the Australian Defence Force or the United Nations Armed Forces.
