If youāre a hairdresser or beauty therapist, it pays to learn what you can claim!
I understand that this time of year can be overwhelming, especially when it comes to knowing what you're entitled to claim for your hairdressing and beauty salon. It's important to have a clear understanding, and I'm here to help you with that.
Car Expenses:
ā You canāt claim the cost of normal trips between home and work, even if you have to work outside normal hours.
You can claim a deduction for the cost of usingĀ your car when you drive:
āļø Directly between separate jobs on the same day (e.g. from your hairdresser job to a second job with another employer)
āļø To and from an alternate workplace for the same employer on the same day (e.g. between different salons owned by the same employer)
āļø From home directly to an alternate workplace (e.g. travelling from home to work at a salon other than your normal salon)
You can use either the logbook or the cents per km method to calculate your deductions.
Clothing (including footwear):
āĀ With a few exceptions, clothing canāt be deducted as a work-related expense. You canāt claim the cost to buy, hire, repair, or clean conventional clothing you wear for work.
You can claim the cost to buy, hire, repair, or clean clothing if it is:
āļø PPE such as aprons
āļøĀ CompulsoryĀ uniform that you are required to wear
ā ļø However please remember that youĀ canāt claim a deduction if your employer pays for or reimburses you for these expenses!
Tools and Equipment:
You can claim the cost of:āļø Tools or equipment you use for work, such as a wax pot, dyes, tools and accessories
āļø Insurance for your tools and equipment
āļø Repairs to your tools and equipment.
ā ļø Remember that if a tool or equipment costs more than $300, you claim a deduction for the cost over a number of years. If worthĀ less than $300,Ā you can claim a deduction for the whole cost.
Self Education:
You can claim a deduction for self-education and study expenses ifĀ it relates directly to your current job, and it:āļø Maintains or improves the skills and knowledge you need for your current duties
āļøĀ Results in (or likely to) in an income increase from your current employment
āĀ You canāt claim a deduction if your study is only related in a general way or is designed to help you get a new job (e.g. if youāre a hairdresser you canāt claim the cost of study to become a make-up artist)
Grooming Expenses:
ā Plain rule, all grooming products are private expenses and you can't claim any deductions for themĀ šOther Expenses:
You can claim the work-related portion of other expenses that relate to your employment, including: ā¢
āļø Union and professional association fees
āļø Technical or professional publications
āļø PPEĀ suchĀ as gloves, face masks, sanitiser or antiābacterial spray,
ā ļøĀ Remember that you can't claim this if they were paid or reimbursed by your employer!
ā ļøĀ This article is to be taken as a guideline only for informative purposes only. Always seek the advice from a professional in the area.Ā
Did you know that the ATO has an app that you can download to keep records of your work-related expenses? Click here to find out more!
You can find the complete ATO Guide by clicking here.
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Best, Ari.
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