A Tax Guide for Fire Fighters
This guide provides a general overview of tax deductions and other financial considerations for you as a professional fire fighters, based on information from the Australian Taxation Office (ATO) and our professional expertise.
To claim a deduction for any work-related expense, it must meet the following three conditions:
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You must have spent the money yourself and were not reimbursed.
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The expense must directly relate to you earning your income.
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You must have a record, like a receipt, to prove the expense.
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The ATO's myDeductions tool in their app is a great way to keep track of your receipts and expenses throughout the year. While we don't have direct access to this app, you can easily export your records and email them to us, or bring them to your appointment. A shared Google Drive, OneDrive, or Dropbox folder is also a great way to store your records throughout the year for easy access.
You generally cannot claim the cost of normal trips between your home and your usual workplace.
You can claim the cost of using a car you own for work when you drive:
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Directly from your job as a fire fighter to a separate second job on the same day.
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To and from an alternative workplace for the same employer (e.g., from your usual station to head office for a meeting).
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From your home directly to an alternative workplace, such as a different station for the day.
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From your home depot to a station you have been temporarily assigned to, provided it is a temporary workplace.
Methods for Claiming Car Expenses:
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Cents per Kilometre Method: You can claim a set rate for each business kilometre, up to a maximum of 5,000 km per car per year. This rate covers all your running costs, including fuel, insurance, and servicing. You cannot claim those costs separately. For many fire fighters, this is the most straightforward method.
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Logbook Method: This method allows you to claim the business-use percentage of all your actual car running costs, including petrol, insurance, servicing, and depreciation. You must keep a logbook for a continuous 12-week period to determine your work-related percentage.
Important: If you have a leased or salary-packaged car, you cannot claim these car expenses, as the costs are already claimed through your employer.
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You can claim travel expenses for meals, accommodation, and fares if you travel away from your home overnight in the course of your duties, for example, travelling to another state to fight a fire.
You cannot claim a deduction if the travel was paid for or you were reimbursed by your employer. Receiving a travel allowance does not automatically entitle you to a deduction; you must still prove that you were away overnight and spent the money yourself.
You can claim the cost of buying, hiring, repairing, or cleaning clothing if it is:
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A compulsory uniform, such as your firefighting uniform, that you are explicitly required to wear by a strictly enforced workplace policy.
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Protective, meaning it has features to protect you from specific risks of injury or illness at work, such as steel-capped boots, gloves, or fire-resistant clothing.
You cannot claim for conventional, everyday clothing like jeans or sneakers, even if your employer requires you to wear them. You also cannot claim a deduction if your employer pays for or reimburses you for these costs.
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You cannot claim the cost of food, drinks, or snacks consumed during your normal working hours, as these are considered private expenses.
However, if you receive an overtime meal allowance under an award or agreement and it's included in your assessable income, you can claim the cost of the meal you buy and eat when you work overtime.
You can claim the work-related portion of other expenses like:
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Phone and internet costs, with records showing your work-related use.
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Union and professional association fees.
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Additional costs you incur to renew a special licence needed for your duties, for example, renewing a heavy vehicle permit.
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As a WA Government employee with the Department of Fire and Emergency Services (DFES), you have access to salary packaging, which is administered by Smartsalary. This allows you to pay for certain expenses with your pre-tax salary, which can reduce your taxable income and increase your take-home pay.
DFES employees are generally not eligible for the capped benefits for living expenses or meals. However, you can still package other items, most commonly a novated car lease. A novated lease allows you to bundle all your car's finance payments and running costs (like fuel, insurance, and servicing) into one payment, using a combination of pre-tax and post-tax funds.
A novated lease is a type of fringe benefit. It will appear as a "Reportable Fringe Benefit Amount" on your income statement. This amount is added to your taxable income to calculate your repayment income for government programs, which can have significant implications for your compulsory HELP (HECS) debt repayments.
We strongly recommend getting in contact to find out more about your specific circumstances. We can help you understand the full impact and ensure any salary packaging is structured effectively for you.
You can call us on (08) 6117 9219, or send us an email at reception@aevumaccounting.com.au
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