2024 Tax Time Resources for Beauty Therapists, According to the ATO

Let’s talk record keeping

Just like that, tax time is here so it’s time to start digging out those receipts! Or, if you used the ATO’s myDeductions tool, all you’ll need to do is whip out your device of choice.

Here are a couple of things to remember:

  1. Having records of your work-related expenses is essential. If you don’t have the proof to support your claim, you can’t claim it.
  2. A bank or credit card statement (on its own) is not enough evidence to support a work-related expense claim. In most cases, you’ll need a receipt.
  3. Speaking of receipts, they must show all of the following:
    – the cost
    – the supplier
    – the date of purchase
    – the nature of the goods and/or services.

You may need to keep other records depending on the expense type, such as a logbook of your car journeys or records of the hours you work from home.

To give you a hand, the Australian Taxation Office (ATO) has provided a handy guide for beauty therapists to help you understand what you can and can’t claim this tax time.

Have further questions about your work-related expenses? Speak to a registered tax agent, or check out the ATO website for information on:

  • car expenses
  • claiming a working from home deduction
  • clothing and laundry expenses
  • keeping records for work-related expenses

Correctly claiming tools and equipment

Planning on claiming a deduction for tools and equipment this tax time? Here’s a guide to help you get your deductions right.

Eligibility: to claim a deduction for tools or equipment, you must use the tools for work-related duties. When you use the items for both private and work purposes, you need to apportion your deduction. You can only claim the work-related use of the item as a deduction.

Types of tools you can claim: depending on your job, you might be able to claim a deduction for hand and power tools, cameras, musical instruments, safety gear, technical instruments, electronic devices, computers, software, office furniture and more.

Calculating your deduction: tools and equipment depreciate over time. For items that cost $300 or less, you can claim an immediate deduction for the whole cost. For items over $300, or sets totalling more than $300, you can claim a deduction for the cost over a number of years (decline in value). Check out the ATO’s depreciation tool to help you work out your claim.

Records: remember to keep track of your receipts and provide a diary or similar record to show how you worked out your percentage of work-related use.

To learn more, visit the ATO website.

This article was supplied by The Australian Taxation Office.

Read the current issue of our digital magazine here:

Have an idea for a story or want to see a topic covered on our site and in our pages? Get in touch at info@professionalbeauty.com.au.

Back to top