A Tax Guide for Paramedics
This guide provides a general overview of tax deductions and other financial considerations for you as a paramedic, 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:
-
You must have spent the money yourself and were not reimbursed.
-
The expense must directly relate to you earning your income.
-
You must have a record, like a receipt, to prove the expense.
-
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:
-
Directly from your job as a paramedic to a separate second job on the same day.
-
To and from an alternative workplace for the same employer (e.g., from your usual station to head office for a meeting).
-
From your home directly to an alternative workplace, such as a different station for the day.
-
From your home depot to a station you have been temporarily assigned to, provided it is a temporary workplace.
Methods for Claiming Car Expenses:
-
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 paramedics, this is the most straightforward method.
-
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.
-
If you are required to work or study from home, you can claim a deduction for the additional running expenses you incur. There are two methods to calculate your claim:
-
Fixed Rate Method: This is a simple method where you can claim a set rate for every hour you work from home. This rate covers costs like electricity, gas, internet, and phone usage. You can also make separate claims for the decline in value of work-related equipment like computers and office furniture.
-
Actual Cost Method: This involves claiming the actual work-related portion of all your home office expenses, which requires detailed records and calculations.
-
You can claim the cost to buy, hire, repair, or clean (including laundry costs) clothing if it is either:
-
Protective: Clothing with features designed to protect you from specific risks of illness or injury at work.
-
A compulsory uniform: Clothing you are explicitly required to wear by a strictly enforced policy, which is distinctive to your organisation.
You cannot claim for conventional clothing, such as plain shirts or sneakers, even if your employer requires you to wear them.
-
You may be able to claim the work-related portion of other expenses, including:
-
Your annual AHPRA registration and other professional association or union fees.
-
The cost of a meal you buy and eat when you work overtime, provided you receive an overtime meal allowance under an industrial law or award and include it in your income.
-
Tools and equipment, such as a stethoscope or pin watch used for work. If an item costs more than $300, it must be claimed over several years.
-
Personal protective equipment (PPE) that you buy, such as gloves or face masks.
-
Phone and internet costs (you must have records to show your work-related usage).
-
Sunscreen, sunhats, and sunglasses if you work outdoors for long periods.
-
As a health-sector employee, you likely have access to significant salary packaging benefits through a provider like Maxxia. 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.
Commonly packaged items that we recommend exploring include:
-
Living Expenses: Up to a capped amount ($9,010) for expenses like mortgage repayments, rent, utility bills, or even groceries.
-
Meal and Entertainment: An additional capped amount ($2,650) can be used for dining out at restaurants, pubs, and cafes.
-
While salary packaging is a fantastic benefit, it's crucial to structure it correctly. Packaging 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 touch to find out more about your specific circumstances. We can help you understand the full impact and ensure your salary package is working for you, not against you.
You can call us on (08) 6117 9219, or send us an email at reception@aevumaccounting.com.au
.png)
Contact Us
Want to get in touch? We'd love to hear from you! Whether you have a question about our services, need assistance, or just want to connect, we're here to help.