The Night Shift Debrief Part 2: Advanced Deductions and Myth-Busting

Mia: Welcome to the podcast, our newsletter made easy. Please note, this podcast features AI-generated voices for your hosts, Mia Taylor... Leo: and Leo Baker, bringing you expert insights from the team at Aevum Accounting. Each week, we're here to help you confidently navigate the ins and outs of Australian tax, whether it's for your individual finances or the complexities of your business. Mia: We'll cut through the jargon to give you strategies for compliance, smart planning, and that ultimate peace of mind. Leo: So, if you're looking to understand your obligations, maximise your financial position, or simply gain clarity on your money matters, you're in the right place. Let's get started with our review of the week! Mia: This week's review comes from Boris. He says: I honestly cannot recommend the team enough. They've been our family's accountants for about six or seven years now, and they've supported us through every big milestone along the way. Leo: Thank you so much, Boris! Six or seven years, that is the kind of long-term relationship we love. And it is a great reminder that having the right team in your corner makes all the difference. Mia: And being in your corner is exactly what today is all about. We are heading back to the ward, this is The Night Shift Debrief, Part 2. Leo: Back in Episode 12, we covered the essentials for our nurses and midwives. We started with the ATO's three golden rules: you must have spent the money yourself and not been reimbursed, it has to relate directly to earning your income, and you need a record to prove it. Mia: We talked about car expenses, no claim for your normal commute, even for a 3am start, but you can claim travel between different jobs and work sites during the day. We covered your compulsory uniform, your protective non-slip shoes, and the laundry you can claim. And we finished on the big one for public health staff: salary packaging. Leo: Right, so that was the foundation. Today, we are building on it with the ATO's latest guidance, and the myths that trip people up every single year. Mia: And there are some good ones. Let's bust them one by one. First up, fitness. Leo: Nurses and midwives are on their feet for twelve, thirteen hours a shift. It is a seriously physical job. So surely they can claim a gym membership to stay in shape for work? Mia: It feels fair, but the answer is a hard no. The ATO treats general fitness as a private expense. Even though your job is demanding and you are on your feet all shift, keeping fit is considered personal, not work-related. So the gym membership, the activewear, the protein powder, none of it is claimable. Leo: Okay. What about the comfortable shoes and the clothes you wear under your scrubs? You are buying special runners and plain t-shirts that get absolutely destroyed at work. Mia: This one is all about the line the ATO draws between protective and conventional clothing. Your non-slip nursing shoes? Claimable, because they protect you from slips and spills. Your scrubs or compulsory uniform? Claimable. But plain t-shirts, ordinary socks, and everyday underwear worn under your gear are what the ATO calls conventional clothing. Even if you only ever wear them at work, and even if they get ruined, they are a private expense. Leo: Here is one I think a lot of nurses will be surprised by. Vaccinations. Nurses and midwives are required to be immunised, flu shots, hepatitis B, all of it. They have to have them for work. Surely those are deductible? Mia: You would absolutely think so, but the ATO is crystal clear: no. Flu shots and other vaccinations are treated as a private expense, even when your employer requires them. It is one of the most common myths on the ward. Leo: Let's talk technology. Every nurse is on their phone, checking the roster, swapping shifts, looking at payslips. Can they claim their phone and internet? Mia: Only the genuine work-related portion, and only with records to back it up. But here is the trap: the ATO has specifically said you cannot claim your phone or internet just for checking your roster, your payslips, or your income statements, or messaging your manager about your shifts. That counts as private use. Leo: Now this next one feels really unfair to me. So many nurses and midwives are shift workers and parents, paying a fortune for childcare just so they can go to work. Please tell me that is deductible. Mia: I really wish I could, but it is a firm no. Childcare is one of the expenses the ATO specifically lists as private, even though, for so many families, it is the only reason they can get to work at all. It is a genuine cost, but it is not a tax deduction. Leo: Alright, last big myth, self-education. Say a nurse studies something new, maybe to move into a different career down the track. Can they claim the course fees? Mia: This is where the rules are really specific. To claim self-education, the course has to relate to your current job as a nurse or midwife, it has to maintain or improve the skills you use right now, or be likely to increase your income in your current role. A Master of Nursing? Generally yes. But studying a Bachelor of Accounting while you are working as a nurse, because you want to change careers? That is a no, it doesn't relate to your current job. Leo: So the test is whether it connects to the job you are doing today, not the job you might want tomorrow. Mia: Exactly. And one more catch: if your employer pays for or reimburses the course, you can't claim it either. Leo: Okay, enough busting myths! Let's give our nurses and midwives some good news. What are the deductions people forget to claim? Mia: My favourite, because it is so often missed: your annual registration. Every practising nurse and midwife has to be registered, and that yearly AHPRA registration fee is tax-deductible. So is your annual practising certificate. And if you belong to a nursing union or professional association, those membership fees are claimable too. Leo: And those add up, year after year. What about the agency nurses, picking up shifts through a nursing agency? Mia: Great point. If you work through an agency, the commissions and agency fees you pay can be deductible. And here is a travel tip for anyone juggling shifts: you still can't claim your normal trip from home to work, but if you drive directly from one job to a second job on the same day, say, from your hospital shift straight to an agency shift at a different site, that trip between jobs can be claimable. Leo: That is a big one for anyone working across multiple sites. What about the actual tools of the job? Mia: Equipment you buy yourself for work, a stethoscope, a fob watch for taking a pulse, or your own personal protective equipment like gloves and masks, is claimable. If an item costs three hundred dollars or less, you can claim it straight away. If it costs more, you claim its decline in value over time. Just remember the golden rule: you must have paid for it yourself and not been reimbursed. Leo: And let me guess, professional journals and publications? Mia: Claimable, as long as they relate to your nursing or midwifery work. It all comes back to that simple test: your money, for your job, with a record to prove it. Leo: And Mia, this ties right back to what Boris said at the top of the show, doesn't it? Mia: It really does. The right team in your corner catches these things, and so many nurses and midwives have been quietly missing these claims for years. Leo: And here is what a lot of people don't realise: if you've missed deductions in previous years, you don't have to wave them goodbye. The team can go back and amend your past tax returns to get that money back. Mia: So if you've been doing your own tax and just realised you've never claimed your registration or union fees, don't panic. Head over to aevumaccounting.com.au to book a tax planning session with the team. They know the rules for nurses and midwives inside and out, and they'll make sure you're claiming exactly what you're entitled to, safely and legally. Leo: Don't guess what you can claim. And whatever you do, don't take your tax advice from the tearoom at three in the morning. Mia: That might be the best tip all episode. Leo: Thank you for joining us for Episode 47! We hope today's discussion has given our hard-working nurses and midwives some valuable insights. Mia: Before we go, a quick but important reminder. The information shared today is for general informational purposes only, and does not constitute specific tax or financial advice. Leo: Everyone's situation is unique, and tax laws are complex. For personalised advice tailored to your situation, we always recommend consulting with a qualified professional. Mia: Until next time, stay savvy, stay proactive... Leo: And look after yourselves out there!