Defence Force

If you're a defence force worker, it pays to know what tax deductions you can claim at tax time. This information will help you to work out what:

income and allowances to report
you can and can't claim as a work-related deduction
records you need to keep.

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Deductions you can claim

Car Expenses

You can claim a deduction when you use your own vehicle to travel between different worksites (eg directly between barracks).

In limited circumstances you can claim the cost of trips between home and work, where you were required to carry bulky tools or equipment for work and all of the following conditions were met:

The tools or equipment were essential for you to perform your employment duties and you didn’t carry them merely as a matter of choice.
The tools or equipment were bulky – meaning that because of their size and weight they were awkward to transport and could only be transported conveniently by the use of a motor vehicle.
There was no secure storage for the items at the workplace.

You need to keep a record of your work-related car expenses using a logbook or be able to demonstrate a reasonable calculation using the cents per kilometre method.

You can’t claim the cost of trips between home and work, even if you live a long way from your usual workplace or have to work outside normal business hours – eg a military exercise held over the weekend.

Home Office Expenses

You can claim a deduction when you are:

You can claim a percentage of the running costs of your home office, including depreciation of office equipment, work-related phone calls and internet access charges, and electricity for heating, cooling and lighting costs. If you are required to purchase equipment for your work and it costs more than $300, you can claim a deduction for this cost spread over a number of years (depreciation).

If you keep a diary of your home office usage, you can calculate your claim quickly using the ATO’s home office expenses calculator. Receiving an allowance from your employer does not automatically entitle you to a deduction.

You need to be able to show you were away overnight, you spent the money and the travel was directly related to earning your income.

You generally can’t claim the cost of rates, mortgage interest, rent and insurance.

Fitness Expenses

Self-Education and Professional Development Expenses

You can claim a deduction when you are:

You can claim a deduction for self-education expenses if your course relates directly to your current job or to the next likely promotion as planned by the ADF.

You can’t claim a deduction for self-education expenses if your study or seminar is only related in a general way or is designed to help you get a new job (eg to enable you to move to a job outside of the ADF).

Other Common Deductible Work-Related Expenses

As long as the expense relates to your employment, you can claim a deduction for the cost of:

protective equipment such as sunglasses, sunhats and sunscreens
safety equipment such as harnesses, goggles and breathing masks
union fees.

You can’t claim a deduction for the cost of:

Attending social functions, even though these may be compulsory
Haircuts, grooming, weight loss programs or supplies, even though the ADF has specific regulations

To claim a deduction
for work-related expenses

You can only claim the work-related part of expenses. You can't claim a deduction for any part of the expense that relates to personal use.

You must have a record to prove it.

You must have spent the money yourself and weren't reimbursed

It must be directly related to earning your income

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