A Tax Guide for Nurses and Midwives
This guide provides a general overview of tax deductions and other financial considerations for you as a nurse or midwife, 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 cannot claim the cost of normal trips between home and work, even if you are on-call or work outside normal hours. However, you can claim the cost of using your car when you drive:
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Directly between separate jobs on the same day (e.g., from your nursing job to a second job as a university lecturer).
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To and from an alternative workplace for the same employer (e.g., driving between different clinics).
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From your home directly to an alternative workplace, like travelling to a training venue for a course.
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If you have shifting places of employment, meaning you continually travel from one work site to another during your workday.
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 nurses, 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 the cost of buying, hiring, repairing, or cleaning clothing if it is:
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Protective, such as non-slip nursing shoes or scrubs, which have features to protect you from specific risks of injury or illness at work.
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A compulsory uniform that is distinctive to your employer and you are explicitly required by a strictly enforced policy to wear.
You cannot claim for conventional clothing, like a plain white shirt and black pants, even if your employer requires you to wear them.
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You can claim expenses for self-education if the course directly relates to your current role as a nurse or midwife and maintains or improves your skills, or is likely to lead to an increase in income. This includes costs for:
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Continuing Professional Development (CPD) to maintain your registration.
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A post-graduate course like a Master of Health (Advanced Nursing) to improve the specific skills you require as a nurse.
You cannot claim a course that is only generally related or designed to get you a new job, such as a Bachelor of Accounting.
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You can claim the work-related portion of other expenses including:
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Union (e.g., ANMF) and professional association fees.
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AHPRA registration
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Annual practising certificate fees.
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Agency commissions and fees.
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Technical or professional publications.
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Tools and equipment, such as a stethoscope or a pin watch.
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Personal protective equipment you buy, such as gloves or face masks.
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Phone and internet costs, with records showing your work-related use (you cannot claim if you only use it to check rosters or payslips).
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As a nurse or midwife employed in the public health system, you have access to some of the most beneficial salary packaging arrangements in Australia through providers like Maxxia or Smartsalary. This allows you to pay for certain expenses with your pre-tax salary, significantly reducing your taxable income.
Key benefits often include:
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Living Expenses: A capped amount (currently $9,010) for expenses like mortgage repayments, rent, or credit card bills.
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Meal and Entertainment: An additional capped amount (currently $2,650) for dining out.
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Any packaged benefit creates 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. We can provide tailored advice for your specific situation, whether you are in the public or private system.
You can call us on (08) 6117 9219, or send us an email at reception@aevumaccounting.com.au
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