Tax deductions for hospitality workers
In hospitality, a lot of the tax rules come down to what you wear. A chef's chequered pants and white jacket can be claimed. The black pants and white shirt worn by wait staff cannot, even when your employer insists on them.
This page sets out what you can and cannot claim as a chef, cook, barista, bartender, waiter or other hospitality employee in Australia, checked against the ATO's own occupation guide. Where a rule has a catch in it, we have said so rather than left it out. Like the ATO's guide, it is written for employees. It does not cover owners running their own cafe or restaurant.
Aevum Accounting is a CPA practice and registered tax agent in Balcatta, Perth, working with hospitality workers across Australia.
Before any specific deduction, an expense has to clear all three of these. The ATO calls them the three golden rules.
1. You spent the money yourself and were not reimbursed. If your employer paid for it or paid you back, it is not your deduction.
2. The expense directly relates to earning your income. Not helpful to your career in general. Directly related to the job you are doing now.
3. You have a record to prove it. Usually a receipt.
If an expense was part work and part private, you can only claim the work-related portion. And you cannot claim at all if you have no records, or if someone else paid.
The short version, before the detail. These are the claims worth checking every year.
Usually deductible
Chef's chequered pants, white jacket and toque, if you buy them yourself.
A compulsory uniform your employer enforces, such as a shirt with the cafe's logo.
Non-slip shoes, aprons and other protective clothing.
Washing and dry-cleaning claimable clothing, and repairing it.
Knives and other tools you buy for work, and repairs to them.
Cut-resistant gloves, safety glasses and other protective items.
Renewing your RSA certificate while you are working.
A first aid course, if you are the designated first aid person.
Overtime meals, but only with an overtime meal allowance under an award or agreement.
Driving between two jobs on the same day, or to a supplier or another venue for your employer.
The work share of your phone and internet.
Courses and conferences that relate to your current job.
Union and professional association fees.
Not deductible, however it feels
Black pants, white shirts and black shoes, even when your employer requires them.
Food and drink on a normal shift, even with a meal allowance.
A meal you buy after your overtime has finished.
The drive between home and work, even after a late close or with your knives.
Driving home between split shifts and back again.
A split shift or supervisor allowance. It is income, with nothing to claim against it.
Your first RSA certificate, or any licence or certificate you need to get the job.
Your drivers licence, even if the job requires one.
Haircuts, cosmetics and skin care, even with a grooming allowance.
Prescription glasses and contact lenses.
Flu shots and other vaccinations, even if your employer requires them.
Courses for a role you do not do, like a chef doing a barista course.
Each of these is explained properly below.
From the 2026-27 income year, if you are an Australian resident earning a salary or wage, you get a standard deduction of up to $1,000 for work-related expenses. The ATO applies it automatically and you do not need receipts for it. It became law in June 2026 and starts with the 2026-27 return, which you lodge from July 2027. It does not apply to the 2025-26 return you are lodging now.
It is not a bonus on top of your normal claims. Any work-related expenses you claim reduce it dollar for dollar. Claim $600 of expenses and your standard deduction drops to $400, so you land on $1,000 either way, with more paperwork. If your work expenses are more than $1,000, you claim them the way you do now, and you need records for every dollar you claim, not just the part above $1,000. For most expenses, that means written evidence such as receipts.
Union fees and professional association memberships sit outside it. You can claim those on top of the full $1,000, as long as you keep the records.
For hospitality workers, it depends on what the job has you buy. Washing a uniform and renewing a certificate may not come near $1,000. A chef buying whites, non-slip shoes and knives in the same year may pass it. Keep your receipts until you know which side of the line you are on.
Everyday clothing is private, even if your employer requires it and you only wear it at work. The ATO's own example is the black pants and white business shirts worn by hospitality employees.
You can claim what you pay to buy, hire, repair or replace four kinds of work clothing. Occupation-specific clothing identifies your occupation, like a chef's chequered pants or white jacket. Protective clothing protects you from specific risks of injury or illness at work, like non-slip shoes, fire-resistant clothing, or aprons that protect your own clothes. A compulsory uniform is one your employer strictly and consistently enforces and that distinctly identifies you as working for them. A non-compulsory uniform counts only if your employer has registered it on the Register of Approved Occupational Clothing. Clothing your employer buys, repairs or replaces is not claimable.
In the ATO's examples, Joe, a chef with two jobs, can claim the chequered pants, white jacket and chef's toque he buys for his restaurant job, but not the jeans and t-shirts he wears on a food truck. Pablo, a barista at a coffee chain cafe, can claim his compulsory shirts with the cafe's logo, but not the black pants or closed black shoes his employer also requires. A set colour does not make them part of the uniform.
Laundry of claimable clothing can be worked out at $1 a load for work clothing only, or 50 cents a load if you mix in personal items. Dry cleaning and repairs are claimed at actual cost. In the ATO's example, Sali, who works in a fast-food restaurant, washes his compulsory uniform in a separate load twice a week for 46 weeks and claims $92.
Haircuts, cosmetics, and hair and skin care products are private, even if you get a grooming allowance or your employer expects you to be well groomed.
You can claim tools and equipment you use to do your job, such as chef knives, for their work-related use, but not ones your employer or someone else supplies.
An item costing $300 or less can be claimed in the year you buy it, if you use it mainly for work and it is not part of a set, or one of several identical or substantially identical items, costing more than $300 together. Above that, you claim its decline in value over its effective life.
In the ATO's example, Lina, a short order cook, has to supply her own chef knives because the cafe owner has not fully fitted out the kitchen. Her set of 6 knives with a chef roll costs $550, so she claims its decline in value over its effective life, not the full cost at once.
Repairs to your work tools and equipment, and insurance for them, are deductible for the work share. So is hiring equipment for work, unless your employer pays you back.
Protective items, such as cut-resistant gloves, are deductible, and so is repairing, replacing or cleaning them, unless your employer supplies them, pays for them or pays you back. Prescription glasses and contact lenses are private. Protective glasses, such as safety glasses or goggles, are claimable for their work use, where you wear them to reduce a real and likely risk of illness or injury at work.
Food, drink and snacks during your normal working hours are private, even if you receive a meal allowance.
Overtime meals are the exception. You must buy and eat the meal while working overtime, and receive an overtime meal allowance under an industrial law, award or enterprise agreement, which you declare as income, even if it shows only on your payslips. An amount for meals folded into your normal wages does not count.
In the ATO's example, Penny, a part-time drinks waitress for a catering company, works an extra 3 hours when an event runs over. She gets a $20 meal allowance under her enterprise bargaining agreement, buys and eats a $21 meal on her meal break, and claims the $21. Kieran, a bartender, gets a meal break and a $21 allowance for 3 hours of overtime, but goes for a walk and buys food on the way home after the overtime ends. He cannot claim it.
The ATO's reasonable amount for an overtime meal is $38.65 for 2025-26 and $40 for 2026-27. If your claim is no more than that, you do not need receipts, but you must still be able to show what you spent and how you worked it out.
Every allowance on your income statement goes in your tax return as income, but an allowance does not give you a deduction by itself. A supervisor or split shift allowance compensates you for an aspect of the job, so there is nothing to claim against it. An allowance for certain expenses, such as tools and equipment, or for special skills, such as a first aid certificate, can come with a deduction, but only for deductible expenses you actually have.
In the ATO's example, Mario gets a split shift allowance when he works both the breakfast and dinner shifts at a cafe. He must declare it, but cannot claim a deduction, because it compensates him for the inconvenience, not for work expenses.
In another, Bronwyn, an employee chef, is paid 95 cents a kilometre to drive her own car to suppliers and training, and her income statement shows a $304 car allowance for 320 kilometres. She declares the $304, then claims her car expenses from her own trip records, using the cents per kilometre method, not the allowance amount.
An allowance that shows only on your payslips, such as an overtime meal or travel allowance, only needs declaring if you claim the expenses it covers.
Cash tips are income too. The ATO lists cash tips, gratuities and payments for your services as work-related income you need to declare.
You cannot claim the cost of getting your first licence, regulatory permit, card or certificate to get a job. The ATO's own example is the Responsible Service of Alcohol (RSA) certificate. You can claim the cost of renewing it during the period you are working, and the same goes for renewing any other licence, permit, card or certificate you need to keep doing your work. If you are not sure whether a course is a renewal or a new qualification, talk to us before you claim it.
A first aid course is deductible if you are a designated first aid person and need it to assist in emergency work situations, unless your employer pays for it or reimburses you.
Your drivers licence is not deductible, to get or to renew, even if you must have it for the job. Flu shots and other vaccinations are private too, even if your employer requires them.
The trip between home and your regular workplace is private, even if you live a long way away, work early morning or weekend shifts, or must carry something that is illegal to carry on public transport, such as knives. In the ATO's example, Simone, a waitress who often closes the restaurant late, drives because the only bus does not run past 7 pm. Her trips are still private. Split shifts do not change this: the ATO says these trips stay private even if you make them more than once a day.
You can claim driving directly between separate jobs on the same day, as long as neither is your home. In the ATO's example, Owen, a waiter with a second job as a retail assistant, can claim the drive straight from one job to the other. You can also claim driving to another workplace for the same employer on the same day, such as from a preparation depot to a function centre to cater an event, and from home straight to an alternative workplace, such as a supplier to pick up ingredients.
Cents per kilometre. 88 cents per kilometre for 2024-25 and 2025-26, and 91 cents for 2026-27, capped at 5,000 work kilometres per car per year. You still need a record of how you worked out the kilometres. The alternative is a 12-week logbook and your actual costs.
If your work requires you to travel and sleep away from home overnight, such as for a training course interstate, you can claim the accommodation, meals and incidentals you pay for yourself, but not what your employer provides or reimburses. Moving for a new job or a transfer is private, and fines are never deductible.
Phone, data and internet costs are deductible for the work-related use of your own phone or devices. In the ATO's example, Sebastian, a caterer on a $39 a month plan, finds from his itemised bill that 100 of his 250 calls over a 4-week period, or 40%, are for work, and claims $165.36 for the 10.6 months he works. Sylvie, a pastry chef, uses her home internet for work emails and to develop the restaurant's menu. A 4-week diary shows 20% work use, so she claims $240 of her $1,200 yearly bill. If anyone else used the connection, she would have to reduce her claim.
Keep your bills and a record of how you worked out your work use. A phone your employer provides and pays for is not claimable, and calls to family and friends are private.
Self-education is deductible if it directly relates to your current job and either maintains or improves the skills you need for your current duties, or is likely to increase your income from that job. Study that only relates to your job in a general way, or helps you get a different job, is not. In the ATO's example, Terri, a chef who would like to open her own restaurant one day, cannot claim barista and bartending courses, because her duties as a chef do not require her to make coffee or serve drinks. Study loan repayments are never deductible, and neither are fees under HECS-HELP.
Seminars, conferences and training courses that relate to your work are deductible, unless your employer pays or reimburses you. In the ATO's example, Jan, an events manager at a tavern, can claim the events management conference and exhibition she attends each year. If a trip is mainly a holiday, you can only claim direct costs such as registration.
Union and professional association fees are deductible, and if they are on your income statement, that is your evidence.
For the 2025-26 return you are lodging now: receipts for everything you claim, your income statement and payslips, which show your allowances, kilometre records or a logbook for car claims, and a record of how you worked out your phone and internet work use. Two shortcuts still apply this year. If your total work-related expenses, other than car, travel and overtime meal allowance claims, are $300 or less, you can claim them without receipts. If your laundry claim, not counting dry cleaning, is $150 or less, you do not need written evidence of it. In both cases you still have to be able to show how you worked out the figure.
From 2026-27, those shortcuts end for everyone. If you claim more than the standard deduction, you need written evidence, such as receipts, for your work-related expenses. Some exceptions continue, including travel allowance and overtime meal allowance claims within the ATO's reasonable amounts, and car claims at cents per kilometre. For those, you still need records that show how you worked out the claim. For laundry worked out at the ATO's per-load rates, its current guidance is to keep a record of how many loads you washed, whether each was a work-only or mixed load, and evidence that you paid for the laundry.
The ATO's myDeductions tool in their app is a reasonable way to keep records through the year. We cannot access it directly, but you can export from it and send it to us. A shared Drive, OneDrive or Dropbox folder works just as well.
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Can I claim my chef's whites and knives?
Yes, if you buy them yourself. A chef's chequered pants, white jacket and toque are occupation-specific clothing, so you can claim them and the cost of washing them. A knife costing $300 or less that you use mainly for work can be claimed in the year you buy it, but a set costing more than $300 together is claimed over its effective life. Black pants, white shirts and black shoes are private, even when your employer requires them.
Can I claim my RSA certificate?
Not the first one. The ATO does not allow the initial cost of a licence or certificate you need to get a job, and uses the Responsible Service of Alcohol certificate as its example. You can claim the cost of renewing it during the period you are working.
Can I claim meals I eat at work?
Not on a normal shift, even with a meal allowance. Overtime meals are the exception, if you buy and eat the meal while working overtime and get an overtime meal allowance under an award or agreement, which you declare as income. A meal bought after your overtime finishes does not count.
I work split shifts. Can I claim anything?
Not because of the split shift. A split shift allowance is income you must declare, with nothing to claim against it. Driving home between shifts and back is private too, because trips between home and your regular workplace stay private even if you make them more than once a day.
Do I have to declare my tips?
Yes. The ATO lists cash tips and gratuities as work-related income you need to declare in your tax return. If you are not sure whether your tips are already in the pay on your income statement, talk to us before you lodge.
How does the $1,000 standard deduction work for hospitality workers?
From the 2026-27 return, you get up to $1,000 automatically, with no receipts needed. Any work expenses you claim reduce it, including the decline in value of a knife set, so it helps most when your work expenses are under $1,000. If they are over, claim them as normal and keep records for every dollar. Your union fees go on top either way.
Do you work with hospitality workers outside Perth?
Yes. We are based in Balcatta and we work with clients across Australia, by email or online appointment. See our pricing page for how the two options differ, or book an appointment.
There is no episode of the Aevum Accounting Podcast for hospitality employees yet, but one is relevant to you. The Thousand Dollar Deduction (episode 54) explains the new standard deduction, and its written companion is The $1,000 Instant Tax Deduction: What It's Actually Worth.
This page is written for employees. If you own a cafe or restaurant, From Flat Whites to Fat Refunds: The Cafe & Restaurant Owner's Tax Survival Guide (episode 27) is the one for you, and its companion is Hospitality Tax Guide 2026: Cracking the "Private Use" Shortcut and Missing Deductions. For advice on your own business, book a business consultation.
We are a CPA practice and registered tax agent, TPB registration 26302591. You can check our credentials, meet the team, or book an appointment.
Also worth reading: tax accountants Perth for how we work with individuals, and our guides for flight attendants, security guards and support workers.