Tax Deduction Checklist For Construction Workers in Australia

Tax Deduction Checklist For Construction Workers in Australia

Construction workers are the driving force behind Australia’s infrastructure and contribute to the growing economy in many ways. No matter, with which construction industry a worker is associated with, he/she is eligible for claiming tax deductions that can help in saving hundreds of dollars in tax refund.

Any lost receipt or missing documentation can cost loss in tax refund, therefore you need to know what records or transaction proofs you need to maintain. Here are some common tax deductions for construction workers in Australia:

Clothing and Protective Equipment

The foremost thing a worker or labourer can claim is protective equipment and uniform expenses. No matter, you are working at a builder’s construction site or at a farm station, safety is of utmost priority, that’s why all sort of safety specific clothing and protective gears you purchase along with their repair and maintenance expenses is claimable. Some examples include:

  • Cost of renting, buying, and laundering compulsory uniforms with a company logo.
  • Cost of purchasing protective clothes and footwear including:
  • Safety items such as glasses, gloves, steel-cap boots, high-visibility clothing, overalls, heavy duty shirts and pants, and fire resistant clothing
  • Sun protection clothing and sunscreen

Car Expenses

You may be able to claim your home-to-work car travel expenses if you carry your own heavy tools. Also, you can claim any additional work-related travel cost during an average workday even if you don’t carry large tools. You may claim the cost of your personal car if it is used for work purposes.

Meals, Travel and Accommodation

If your employer doesn’t reimburse you for any expenses, you can claim the costs related to meals, accommodation, and travel expenses associated with overnight stay for work. You can deduct:

  • Meal expenses when working extra
  • Meal expenses when working away from home
  • Accommodation expenses when working away from home
  • Travel costs for work-related purposes, such as driving to pick up supplies, moving between locations, attending trainings

Training Tax Deductions

Costs associated with training include acquiring new skills and renewing operational licences is also claimable. When out-of-pocket training costs are required for your construction job, you can typically deduct them from your taxes, including:

  • Phone call expenses
  • Travel expenses
  • Accommodation expenses for overnight stay
  • Meal expenses for overnight stay
  • Equipment and tools needed for the course
  • Books and instruction guides

So, these were some of the costs you can claim as a tax deduction if you are working as a construction worker. For more details, feel free to contact our tax accountants at KPG Taxation.

Consulting with KPG Taxation

Focus On Growing Your Business, Leave The Accounting On Us!

  • Income Tax : File your taxes & get the best claims & returns.
  • Accountancy : Hire expert accountants to manage your transactions.
  • Bookkeeping : Let us handle your record books and expense reports.
  • Business Advisory : From company set-up to payroll, we handle it all.