Article to be attributed to Mark Chapman, Director of Communications for H&R Block Australia

With the end of the financial year rapidly approaching, it won’t be long before its time to lodge your income tax return for 2021/22. To get the best possible tax outcome, it’s essential that you understand what you can – and what you can’t – claim against your taxes, so here’s a checklist of the deductions all nurses should be considering claiming this tax year.

Remember, this list isn’t exhaustive and not all the deductions will apply to everyone. Similarly, you may be entitled to some deductions that aren’t listed here. Make sure you get professional help from a tax agent like H&R Block to ensure that you’re getting your return right.

Work-related clothing

If you’re required to wear a uniform as part of your role, the cost is deductible. If your uniform is compulsory, you may be able to claim for non-slip shoes, socks, stockings or a single item like a tie if they’re an essential part of your work gear.

Then there’s occupation-specific clothing; garments that aren’t every day in nature but would allow the public to easily recognise you as a nurse – these are all deductible.

You can also claim a deduction for the cost of clothing that you use at work to protect your ordinary clothes from soiling or damage, for example, laboratory coats and aprons.

Claim for the cost of laundering and dry-cleaning your eligible work clothes such as your required uniform.

COVID-19

You can claim a deduction for items of COVID-19 protection such as:

• Gloves
• Face masks
• Sanitiser
• Antibacterial spray.

In relation to COVID-19 tests, these will be deductible where they are taken for work-related purposes, eg where there is a mandatory requirement under your employer’s COVID-19 policy.

A COVID-19 test may also be required by certain countries and states in order for an employee to enter that territory or return to their home state. This too is tax deductible where the test is required for a work-related trip. 

RAT kits purchased for private purposes (eg personal travel, convenience, no access to PCR testing) will not be tax deductible.

Self-education

Claim for conference and other training expenses. As well as the cost of the conference or course itself, that can also include travel, meals and accommodation costs – even where the conference or course is overseas, though you might need to apportion the costs (and disallow the private bit) if you spent some downtime on the beach afterwards!

Professional subscriptions

Claim for professional subscriptions, whether to a professional body like the AMA or to a trade union. The costs of renewing your annual practising certificate are deductible as are the costs of journals, periodicals and magazines that have a content considered to be aligned with nursing.

Travel and meals

You can’t usually claim the cost of the daily commute to and from work. The only exception to that rule is if you have to carry bulky equipment to and from work because there is no secure place of storage for them at your workplace.

You can claim the cost of travelling between two workplaces, such as between two hospitals or medical centres. In addition, the cost of transporting patients and travelling between patient’s homes is deductible. This includes public transport and taxi costs.

If you plan to use your own car for work purposes, you can either claim a set rate of 72 cents per kilometre for all work journeys, or you can claim the actual expenses incurred.

If you choose the latter, you’ll need to keep receipts for all costs (including road tolls and parking fees) and also keep a logbook of all your journeys for a 12-week period.

If you’re required to work overtime, you can claim for the cost of buying meals provided you have been paid an allowance by your employer.

Working from home

If you spend time working from home – for instance preparing staff rosters at the weekend for the week ahead – you can claim a proportion of home running costs, either based on actual costs (in which case you’ll need receipts), a standard rate of 52 cents per hour or the special concessional rate of 80 cents per hour.

Be warned, the 80 cent rate covers everything whereas with the 52 cent rate, you can still claim your home internet, mobile phone and depreciation on electronic equipment (for example, your computer or laptop); because of this, the 52 cents rate often produces the bigger deduction.

Tools and equipment

you can claim a deduction for items including stethoscopes and other medical equipment, reference books and nursing fobs. If the cost is less than $300, a deduction is claimable immediately, otherwise a deduction can be claimed over the “effective life” of the assets.

Other deductions

• Agency costs: if you get your work through an agency, the cost is claimable.
• Mobiles or pagers if you’re on call can be claimed

The Right Records

Even if you’ve incurred any of the above expenses, the golden rule is that you can’t make a claim unless you can prove you spent the money (and also that you weren’t reimbursed by your employer).

So, make sure you keep all relevant receipts, invoices, bank statements and credit card statements. If you’re not sure if you can make a claim, keep the receipt anyway and discuss it with your tax agent.

Get help!

Speak to a tax professional, head to www.hrblock.com.au to book a consultation with your local agent; they can identify exactly what you need to do to get into shape for the 2022 tax season and maximise your deductions.