We have listed down some examples of expenses that you have incurred as a hairdresser that might be claimed as Tax Deductions.
Work-related clothing expenses
If you have to wear a uniform for work with the company logo, it can be deductible (if you paid for it yourself). You can claim laundry expenses for it as well, for up to $150 without receipts. If you have purchased an apron or other protective gears; that is an eligible expense and can be deducted.
Work-related Travel expenses
Any travel expenses that you incurred for hair shows or conferences where you work can be claimed, including accommodation.
You are entitled to claim self-education expenses you incur that are related to your job, such as courses that help to improve or maintain your skills as a hairdresser.
The tools/equipment that you have purchased might be costly. So, why not claim these as deductions! Equipment such as scissors, combs or even a pair of tweezers can be deductible if you use them in your job, so remember to keep the receipts!
Motor Vehicle/Public Transport Expenses
If you visit clients or pick up equipment/supplies for your job, the cost of your motor vehicle/public transport expenses are tax-deductible. Do note that driving/public transport from home to your normal workplace and vice versa is not a deductible expense. However, if you use your car for both work and personal usage, you need to calculate how much of your usage is for work purposes, either through a logbook or the cents per kilometre method.
Any donations made to eligible charities of more than $2 are deductible.
Any union fees that you pay for are deductible. Most unions and associations send members statements of the fees or subscriptions paid.
Any accounting fees (including using a Tax Agent) are deductible. So, why would you do it yourself?
If you are a Sole Trader
Work-related Equipment/Tools Changes to the instant asset write-off means you can claim the full amount for any single asset you purchased prior to 12 March 2020 up to $30,000 and $150,000 till 30 June 2021.
Any fees that you have incurred for operating a bank account related to the business are tax deductible.
Any insurance expenses that you have incurred for your business such as public liability insurance are tax-deductible. Income protection insurance is also tax-deductible.
Any advertising expenses that you have incurred for your business are tax-deductible.
Rent is tax-deductible if you are renting premises. If you are working from home and have a mortgage, it could be tempting to claim a portion of your mortgage as rental expenses. However, this is not recommended as if you do so, you may have to pay capital gains tax (CGT) if you sell your house in the future.
Any advertising expenses that you incur for your business are tax-deductible.