If you’re 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:
❌ You can’t 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 using your car when you drive:
✔️ Directly between separate jobs on the same day (e.g. from your hairdresser job to a second job with another employer)
✔️ To and from an alternate workplace for the same employer on the same day (e.g. between different salons owned by the same employer)
✔️ 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):
❌ With a few exceptions, clothing can’t be deducted as a work-related expense. You can’t 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:
✔️ PPE such as aprons
✔️ Compulsory uniform that you are required to wear
⚠️ However please remember that you can’t claim a deduction if your employer pays for or reimburses you for these expenses!
Tools and Equipment:
You can claim the cost of:✔️ Tools or equipment you use for work, such as a wax pot, dyes, tools and accessories
✔️ Insurance for your tools and equipment
✔️ Repairs to your tools and equipment.
⚠️ Remember that if a tool or equipment costs more than $300, you claim a deduction for the cost over a number of years. If worth less than $300, you can claim a deduction for the whole cost.
Self Education:
You can claim a deduction for self-education and study expenses if it relates directly to your current job, and it:✔️ Maintains or improves the skills and knowledge you need for your current duties
✔️ Results in (or likely to) in an income increase from your current employment
❌ You can’t 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 you’re a hairdresser you can’t claim the cost of study to become a make-up artist)
Grooming Expenses:
❌ Plain rule, all grooming products are private expenses and you can't claim any deductions for them 😞Other Expenses:
You can claim the work-related portion of other expenses that relate to your employment, including: •
✔️ Union and professional association fees
✔️ Technical or professional publications
✔️ PPE such as gloves, face masks, sanitiser or anti‑bacterial spray,
⚠️ Remember that you can't claim this if they were paid or reimbursed by your employer!
⚠️ This article is to be taken as a guideline only for informative purposes only. Always seek the advice from a professional in the area.
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.
