Paul has chosen to live away from work, so his travel from the ocean to the city is not tax deductible Paul the plumber Paul is a keen surfer who has chosen to live in a coastal town, which is 100kms from where he performs most of his work. Every work day he travels the 100kms to the building site. Paul does not have to transport his tools, because they are kept overnight in a secure work shed. In the afternoon, Paul drives to a second construction site and works there. Paul then drives the 100kms home. Paul is required to wear hi-vis shirts and steel- capped boots when onsite at work. The rest of his clothing is conventional (eg jeans) and not company-specific. Craig the carpenter Craig has long-term work in a retirement village defining where his employer, a construction company, is building several units. Craig drives his sedan to the site every day. His employer requires Craig to provide his own tools which he stores in the boot of his car. His toolbox is large, weighs 30kg, and there deductionsis no safe place on the construction site where hecan leave it.Craig also uses his tools for private purposes,including on the weekend to build the deck he has always dreamed about. This accounts for 25 per cent of the tools’ use. Craig is a senior manager so about once a month Tools, travel and protective The three golden rules he must also travel interstate to Sydney to attend management meetings. Craig stays overnight and clothing can be quite To work out if you can claim a deduction for work- keeps receipts for all his expenses, such as meals expensive for builders related expenses (WRE) you need to be aware of and accommodation. the three golden rules: Craig is required to wear hi-vis shirts and steel- and tradies. But which • you must have spent the money yourself and you capped boots when onsite at work. The rest of expenses are deductible? weren’t reimbursed his clothing is conventional (eg jeans) and not If you’re an employee – • it must be directly related to earning your income company-specific. • you must have a record to prove it (you can use So, what deductions are Paul and Craig entitled builder or other tradie – it the ATO app’s myDeductions tool to keep track to? Let’s take a look at car, clothing, tools and pays to learn what you can of your expenses). equipment, and travel expenses. claim at tax time. Also – you need to remember to only claim the work-related portion of your expenses. Car expenses Whether you can claim a deduction for WRE You can claim a deduction for the cost of travel depends on your individual work situation. In this while performing your duties. This includes travel article we highlight some deductions housing between different work locations. industry workers may be able to claim, by taking a This is good news for Paul; he will be able to look at an average work day of two tradies – Craig claim his travel between the two construction sites. the carpenter and Paul the plumber. But Paul needs to keep in mind that normal trips MAY 2018 HOUSING 91 BUSINESS • TAX TIPS