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 purchased an apron or other protective gear to keep that dye off your clothes, that is an eligible expense and can be deducted.
For more information on Uniform and Laundry Deductions, please click here.
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.
Work Related Tools/Equipment
The tools/equipment that you purchase might be costly, so why not claim them 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 deductible. Do note that driving/public transport from home to your workplace and vice versa is not a deductible expense. However, if you use your car for both work and personal usage, you would need to calculate how much of your usage is for work purposes, either through a logbook or the cents per kilometre method.
For more information on Motor Vehicle Expenses, click here.
Any donations made to eligible charities of more than $2 are deductible, so keep the receipt if you sponsor the local bowls club!
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:
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 July 2020.
Any fees that you incur for payment gateways are deductible.
Any insurance expenses that you incur for your business such as public liability are deductible.
Rent is 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 deductible.
For more general information on Sole Trader Deductions, please click here.