6 Top Tax Deductions For Hospitality Workers

Whether you are a chef, waitress, bartender, venue manager, event manager, barista, mixologist, or so on, you have a large list of deductions you can claim just because you work in the hospitality industry. Check out what deductions you can claim.

1) Meal expenses

You can claim overtime meal expenses when you are working overtime or when you receive an ‘overtime meal allowance’.This amount needs to be reasonable.

On the other hand, you can’t claim expenses for meals eaten during a normal working day, even if you receive an allowance to cover the meal expenses.  

Also, if the amount for overtime meals is part of your salary, then it is going to be taxed as part of your income and is not considered as an ‘overtime meal allowance’, so you can’t claim it.

Don’t forget to keep written evidence and all receipts for overtime meals as part of tax deductions for hospitality .

2) Clothing expenses

You can claim tax deductions for hospitality workers for these work-related clothing expenses

• Purchase or rent of compulsory uniforms and corporate wardrobes. For example, if you are a chef, you can claim your chef’s hat, shirt, and pants.

• Single items of distinctive clothing, such as a jumper, shirt, or tie with the employer’s logo, are permitted if you must wear them at work.

• A non-compulsory uniform that your employer has registered with the AU Industry.

• Protective clothing (protective footwear, gloves, aprons)

• The cost of washing, drying, and ironing your work clothing is a laundry expense.

• Clothing repairs

You must know that you can’t claim conventional clothing such as a plain white shirt, or everyday footwear such as casual or running shoes, as the wearing of these items is not limited to your workplace.

3) Car expenses

To claim work-related car expenses or tax deductions for hospitality workers, you need to own the car and pay for its running costs. The expenses you can claim are:

• Work-related car expenses, such as deliveries or picking up equipment from one venue to another.

• The cost of travelling between two workplaces (two separate jobs and two workplaces for the same employer).

• The cost of taxis, short-term car hire, tolls, and parking fees are necessary costs to your income-earning activities. (net of any reimbursement you may have received from your employer).

On the other hand, you can’t claim expenses for regular trips from home to your workplace.

Nevertheless, there are some exceptions:

• If your home is considered a base of employment, you commence work at home and travel to another workplace, and vice versa.

• If between home, workplace, and your other job, you go to an alternative workplace.

• If you carry bulky tools to and from various work locations because there is no secure storage space at your work.

Work out your work-related car expenses with us. Check out our blog ‘work-related car expenses’ and contact us to help you calculate your car expenses.

4) Self-education expenses

You can claim self-education and training expenses if they are directly related to your current position or your income-producing activities:

• Tuition fees

• Seminars, formal courses

• Books and equipment purchased for the study (textbooks, software, etc.)

• Travel costs

• Associated phone and internet fees

• Accommodation and meals (if away from home overnight)

You can’t claim self-education expenses if you intend to get a new job or lead to another income-earning activity, even if the new role is within the same company. Hope this tax deductions for hospitality workers helps.

5) Tools and equipment expenses

As long as it’s used in your job, you can claim the following equipment:

• Purchase costs of equipment up to $300 (chef’s knives, cooking utensils, tablet, computers, cocktail mixers, tools).

• Depreciation of equipment costing over $300

• Repair and maintenance costs of work-related equipment.

• The leasing costs of the equipment used in your job.

• Interest on loans taken out to purchase work-related equipment.

• Always keep a record of the percentage of the equipment used for work purposes.

6) Other expenses : Tax deductions for hospitality

More expenses you can claim as a hospitality worker are:

• Gaming license: The cost of renewing. You cannot claim the initial cost.

• Hiring equipment: Such as a PA system or extra chairs for a function.

• The cost of purchasing hospitality-related journals.

• Work-related phone calls

• Union and professional membership renewal fees.

7) Real Examples of Claimable Deductions

Hospitality roles can vary a lot, but here are some practical examples of tax deductions for hospitality workers based on actual job duties:

• A chef purchasing a new set of professional knives under $300 and claiming the cost of sharpening services every few months.

• A barista buys a branded apron and claims laundry expenses using a fixed rate per wash.

• A venue manager uses their phone for staff rosters and logging work calls to claim a percentage of their mobile bill.

• An event coordinator traveling to multiple venues in one day, claiming tolls and parking as work-related travel.

• A bartender renewing their RSA certificate and purchasing protective shoes required by their venue.

More information on the Tax deduction for hospitality workers in Australia

Don’t forget to keep all your records and receipts of your expenses. We recommend you take pictures of your receipts, as it is a safe way to keep your information. Precent can help you determine your work-related expenses as a hospitality worker. Don't hesitate to get in touch with us at hello@precent.com.au or calculate your tax return online