If you spend your days working in a child-care centre as a child-care assistant, nanny, or kindergarten assistant there is a very high likelihood that you are entitled to quite a few legitimate tax deductions. Read on to see what tax deductions described below may apply to your personal tax situation.
If your work requires you to drive to the local shops to collect supplies for your workplace, or you need to use your own vehicle to attend excursions or events outside the centre then you are entitled to claim this cost. The simplest and most effective manner is a rate per km travelled. The ATO rate for 2020/2021 is $0.72/km. So, simply keep a record of any trips and just total up your km driven at the end of the year. Note that in order to use this method the car being used must be registered in your name.
On top of your car expenses other costs, such as tolls and parking fees are also tax-deductible if connected to work-related trips. Please always keep your receipts and a record of the trips taken in the event of an ATO review or audit.
Clothing and Laundry.
If you are required by your employer to wear specific clothing that has a logo on it then the cleaning and laundering of these items is deductible. Dry cleaning expenses must be justified with actual receipts. Using your own washing machine at home, you are entitled to claim a rate of $1.00 per full load.
If you wear any protective items such as steel-capped boots, gloves, masks, gumboots and sun protection equipment (such as glasses and hats) then the actual cost of buying these is tax-deductible.
Training and Self-Education
If you are studying whilst also working in child-care, then the costs of your course fees, textbooks, stationery, and computer expenses can all be claimed.
Other Work-Related Deductions
There are other various deductions that you may be entitled to claim as a tax deduction and some of these may include-
- Donations to registered charities
- Union and membership fees
- Tools and equipment such as laptops and musical instruments
- Mobile phone expense for work-related calls
- Home internet expenses for work conducted at home
- Income protection insurance
- Tax Agents Fees (including the cost of traveling to see your tax agent)
As always, you must keep receipts in order to justify your claim, so start now. We recommend using cloud storage such as Dropbox or Google Drive to store your receipts.
Claritax Accountants is based in Mount Annan and provides a range of quality taxation services to individuals and small businesses. We appreciate that your time is valuable, so we offer the opportunity to complete your tax return online, over the phone, or at in-person appointments held at your home (for residents of the Camden and Campbelltown Local Government areas). Click the link here or go to our website to book an appointment at a time that suits you or call our office in Mount Annan for more information.