Did you have any idea that even part-time employees benefit from tax deductions in Australia that can be greatly added to higher refunds for them?
For any one who has been trying to work his or her way by having more than one job, it is most helpful if he or she understands tax obligations.
This blog showcases all the very basic things involved in lodging tax returns and claiming the rightful deductions, thereby making it easy for the part-time workers to get what he or she is really meant to get without all the fuss.
Do part-time workers really need to lodge a tax return?
If your total annual income exceeds the tax-free threshold of $22,575 for financial year 2025, you will need to lodge a tax return. If your income was less than that, you would nonetheless need to lodge a return if the company that employed you withheld tax at any time during the year so that the amount can be claimed back.
Deductible expenses for part-time workers
As a part-time worker in Australia, it’s essential to understand the tax deductions available to you. By identifying and claiming eligible expenses, you can potentially reduce your taxable income and increase your tax refund.
Here’s a breakdown of common deductible expenses:
1. Travel expenses
- Eligible Claims: Travel that is made within the same day from more than one workplace or job site. For example, if travelling to an office from one job to another, transportation from home to the office is allowed. Such travelling expenses are deductible.
- Non-Deductible: The daily commute between home and work is normally private and does not become deductible.
2. Clothing and uniforms
- Eligible Claims: These include protective gear (like steel-capped boots or sun-protective clothing), as well as unique work uniforms that do not necessarily belong to an employer but can be distinguished using an employer’s logo.
- Non-Deductible: Ordinary items of clothing, whether worn while working (for example, plain black trousers or a white shirt), are not deductible.
3. Equipment and tools
- Immediate Deduction: Work-related tools or equipment costing $300 or less can be claimed as an immediate deduction.
- Depreciation: For items over $300, you can claim a deduction for their decline in value over time (depreciation).
- Apportionment: If the equipment is used for both work and private purposes, you can only claim the work-related portion.
4. Self-Education expenses
- Eligible Claims: Expenses for courses directly related to your current job that either maintain or improve the skills required for your role or are likely to lead to an increase in income. This includes tuition fees, textbooks, and stationery.
- Non-Deductible: Courses that don’t have a direct connection to your current employment or are intended to help you obtain new employment in a different field.
5. Other work-related expenses
- Eligible Claims: Portions of telephone and internet costs utilized for work purposes, union fees, professional memberships, and costs for work-associated stationery.
- Non-Deductible: No part of these expenses that is personal can be claimed.
Important considerations:
- Record Keeping: Ensure that you keep all receipts, and documents for all expenses that you will claim; as the Australian Taxation Office (ATO) will seek substantiation for your deductions.
- Apportionment: Only claim that portion which is related to your work when you have items used personally as well as for professional practice.
Stay updated with such deductible expenses while also keeping proper records to help you in tax compliance while maximizing your tax refund.
Also Read: Tax Deduction Guide On Self-Education Expenses In Australia
How To manage taxes with multiple part-time jobs?
If you hold down a variety of part-time jobs, knowing how to apply the tax provisions on your income would be of utmost importance to know.
The Australian Taxation Office permits the application of the tax-free threshold (the very first $22,575 in income for the 2025 financial year) upon just one job, preferably your main employer. Additional jobs are charged at higher rates.
How to manage this:
- Fill Tax Declaration Forms: Indicate that the tax-free threshold applies to your primary job only.
- Track Your Income from Jobs: Keep detailed record of income from each job to ensure accurate reporting, preventing overpayment of tax.
- Know PAYG (Pay-As-You-Go) Obligations: Additional employers will likely deduct more tax from your wages to take into consideration your total income levels.
By completing the necessary forms and monitoring your earnings, you can avoid surprises when lodging your tax return and make the most of available deductions.
Record-keeping for tax returns
Accurate record-keeping is essential for substantiating your claims.
Digital receipts are acceptable as long as they are legible and include:
- Supplier’s name.
- Date of payment and invoice.
- Amount paid and description of goods or services.
For small expenses under $10 (up to $200 cumulatively), receipts are not required, but keeping a record is still advisable.
Key considerations for part-time workers
- Tax-Free Threshold: Ensure only your main employer applies the tax-free threshold to avoid overpayment at higher tax rates.
- Work-Related Proportions: Only claim deductions for the portion of expenses directly related to your job.
- Multiple Jobs: When working more than one job, maintain separate records for each workplace to simplify the lodgement process.
Need help with your tax return?
Navigating tax returns and deductions as a teacher can be tricky, but Leading Tax Experts is here to help. Our experienced tax agents specialise in ensuring you claim every deduction you’re entitled to, so you can maximise your refund and minimise your stress.
