Teachers and students have all headed back to the classroom for the 2021 school year, I thought I would do a blog post detailing the top 10 deductions teachers can claim on their tax, and the top 5 things most teachers shouldn’t be claiming!
As always, this post doesn’t take your personal circumstances into account. If you need advice on your tax return please call me on 0481 02 44 66 or email grant@gqtax.com.au
Grant.
Top 10 Deductions for teachers
1. Home Office Expenses
You can claim a deduction for the additional running expense of an office at home that you use in relation to your work (lesson preparation, marking, report writing).
This could include the decline in value of home office equipment, cost of repairing home office furniture and fittings, heating cooling, lighting and cleaning expenses related to the office.
You can claim on a cents per hour rate (52c/hour in 2020-2021) or calculate the actual expenses incurred. During the COVID-19 pandemic there is an additional shortcut method available until 30 June 2021, talk to me to discuss which is the best method for you.
2. Phone and Internet
You can claim for your work related use of your personal phone and internet. Claims over $50 must be supported by records based on itemised bills for a four week period and then averaged over the teaching year. If you have a subscriptions to streaming services I find that these take up most of the internet data usage and so work related percentages for internet are much lower than they used to be.
3. Self Education
If you pay for any professional development or study you do that is related to your current job, you can claim for expenses such as course fees, travel, accommodation, textbooks and equipment. Usually the first $250 of your education claim is not deductible. There are different rules for undergraduate study and post graduate study, please discuss with me your individual case.
4. Stationery
You can claim the cost of all stationery that you purchase for you to use in relation to your work.
5. Union and Professional Association Fees
You can claim a deduction for membership of any teachers’ union or professional association.
6. Tools and Equipment
You can claim for tools and equipment you purchase if you use them to perform your duties as a teacher. Examples include computers, tablets, briefcases or satchels or other items for carrying students’ work or teaching materials.
Each individual item equal to or less than $300 (unless part of a larger set) can be claimed in full. Items over $300 must be claimed gradually over the expected life of the item (depreciated).
Any repairs to items you purchased in previous years can be claimed as well.
7. Professional Library
You can claim for any books or journal subscriptions you purchase for work. Subscriptions that run for more than a year need to be split over the term of the subscription. Books or sets of books costing more than $300 need to be depreciated over the expected useful life of the book(s).
8. Travel Expenses
When you travel for work, you stayed overnight and were not reimbursed by your employer, you can claim for accommodation, meals and incidentals. The ATO sets reasonable limits for these items, but these relate to the evidence you need to retain, there is not automatic deduction for money you haven’t spent!
9. Sun Protection
Teachers who spend time outdoors either as part of their teaching or playground duty can claim for sun protection costs such as sunglasses, sunhat and sunscreen. Items that are used outside of work should have their cost split between work and private use.
10. First Aid Courses
If you are a designated first aid person, you can claim the cost of your first aid training unless your employer pays for your course or reimburses you.
Top 5 Expenses Teachers Probably Shouldn’t Be Claiming.
1. Clothing and Laundry
You can’t claim for single items of clothing such as a staff polo or rugby top, even if it does have the school logo embroidered unless it is compulsory to wear that item every day.
Teachers that require protective clothing (TAS, Agriculture) may be able to claim for these purchases.
2. Student Expenses
You can’t claim for expenses for students’ need that you pay for, whether it is stationery or the occasional lunch. Neither can you claim for gifts purchased for students.
3. Social Functions
Expenses relating to attending staff or school functions are not deductible.
4. Prescription Eyewear
You can’t claim for general use prescription glasses or contact lenses. If your role requires safety equipment or sun protection, you may be able to claim for these specialised items.
5. Fitness Expenses
Fitness expenses such as gym memberships are not deductible for teachers, even if you are a PDHPE teacher.
GQ Tax 