Tax Return:: Tax Deductions for Hairdressers and Beauty Professionals

Hello, this is your tax and super specialist, P&C Tax Professionals.

Today’s blog post will focus on some of the tax deductions hairdressers or beauty professionals could benefit from when they lodge their tax return. So, let’s begin with travel expenses.

<Travel Expenses>

If you are required to travel as part of your job, for example in order to attend a conference, seminar, training course or simply an industry promotion, you can claim the expenses that arise as a result of such an event. Travel expenses generally includes meals, accommodation, fare tickets or any incidental expenses that you would need to pay for as part of your business trip.

<Car Expenses>

The car expenses that are incurred in the following circumstances are tax deductible:

> If you are working for multiple employers and you have to drive to separate jobs on the same day. For example, you start your day as a hairdresser at a hair salon and later in the afternoon you have another job with your second employer.

> You are required to drive to a different workplace but for the same employer on the same day.

As many of you may already be aware of, you cannot claim the cost of driving from your home and work and vice versa. This is even if you are working beyond the normal work hours. This means that any parking fees, tolls or cost of fuel that you pay for during your journey from home and work must be excluded from your car expense tax deductions.

<Uniform and Laundry Expenses>

While working with your current employer, if you have purchased, hired, mended or cleaned your work uniform, you can claim for such expenses as a deduction. In addition to that, any protective clothing you must wear in order to carry out your duties safely such as face masks or gloves, are also tax deductible.

However, any laundry costs to clean your plain, ordinary black pants, jeans or shirts cannot be claimed as a deduction. If your employer pays for the cost of buying, mending or cleaning your work clothes, this too cannot be included as part of your work-related clothing and cleaning tax deduction.

<Tools and Equipment Expenses>

If you are working as a hairdresser or a beauty professional, I’m sure there are tons of tools and equipment you use for work purposes to perform your duties. This may include hair cutting as well as hair styling tools. These tools and equipment you have purchased to use for work is tax deductible but always keep in mind that if you also use the tools for personal purposes, you must only include the work-related percentage use of your tools/equipment.

If the tool/equipment cost:

> More than $300: you are able to claim a deduction for the acquisition cost spread over the useful life of the asset.

> Less than $300: you can claim an immediate deduction for the full acquisition price.

Any tools or equipment that are provided by your employer or any other person must not be included as part of your work-related deductions on your tax return.

<Self-Education Expenses>

If you have enrolled into a course that has a direct relation to your current role, such self-education expenses are tax deductible. Examples of courses that may have a strong connection with your position as a hairdresser include advanced colouring, cutting, and up-style courses.

However, if the study you are undertaking is only associated with your job in a general way or is instead designed to assist you in getting a new job, you cannot claim a deduction for your study expenses. For example, if you are currently working as a hairdresser, you cannot claim the cost of a course that you paid to become a make-up artist.

<Other Commonly Claimed Tax Deductions>

Other work-related deductions you could claim as a hairdresser or beauty professional consists of:

> Mobile phone calls (only the work-related % must be accounted for)

> Union and professional association fees

<Expenses that are non-deductible>

Unfortunately, when it comes to hairdressers and beauty professionals, even if your employer expects you to be immaculate in your presentation, you cannot claim a deduction for any cosmetics or skin care products you purchase. This is because such expenses are considered to be more personal or private in nature than heavily work-related.

<Records you would need to keep>

In terms of the record keeping that needs to be done, it is sufficient to keep physical copies of your receipts or digital copies of your proof of purchase such as a photo or scanned version of your receipt or an email receipt you may have received. Just make sure that all the relevant receipts are legible with the name of the supplier, total amount you paid for, details of the good(s) purchased and the date of purchase clearly shown.

We will close it off here but we are always open to further questions and enquiries that you may have. Simply reach out to us through our Official Facebook Page (P&C Tax Professionals – Australia) or by using our email address at pnctax@naver.com.

Thank you and bye for now!