Police Debrief Part 2: Tax Deductions for Police Officers

CORRECTION NOTICE, updated 23 September 2026 This episode was recorded from a script that contained several errors. The audio cannot be changed, so they are marked inline through the transcript below and summarised here. Where the recording and this page disagree, this page is right. 1. BOOTS ARE CLAIMABLE where their colour, style and type are an integral and distinctive part of your compulsory uniform, as specified in the uniform policy. The episode says the opposite, and it is a recurring annual expense. 2. The ATO has NOT said you cannot claim phone or internet used to check rosters, shifts or payslips. That restriction applies only to casual employees, and police officers are not casual employees. 3. Overtime meals have THREE conditions, not two. The missing one is that the allowance is on your income statement and you declare it as income, and it is the one the ATO uses to deny claims. 4. Gym fees for TRG and SERT members are not the settled position the episode suggests. The ATO names only the diving squad, and its general page says police officers cannot claim fitness expenses. The test has two limbs and both must be met. 5. Detectives cannot claim ordinary plain clothes. The exception is for undercover officers buying clothing for a specific operation, and the ATO names plain clothes police as an example of what is NOT deductible. 6. The bulky equipment exception has three conditions, not two. 7. Police dog costs cover food and vet bills, but not a kennel or shelter, which is capital and private. 8. The third golden rule is that you need a RECORD, usually a receipt, not always a receipt. For 2025-26 and earlier years, laundry claims of $150 or less and total work expenses of $300 or less have their own concessions, and stating the rule absolutely deters legitimate small claims. Both concessions end from 2026-27. 9. There is one thing worth knowing that the episode does not mention: if you use the fixed rate method for working from home, phone and data are already covered by it and cannot be claimed separately as well. Verified against the ATO's police occupation guide (QC 20810) and its clothing, fitness, overtime meal and phone guidance. If any of this affects your return, please get advice on your own numbers rather than relying on the recording. ---------- 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 Ellise McCoombe. She says: "The team at Aevum Accounting were super easy to work with and managed to squeeze the most possible out of my return. Plus, pick up a few deductions from previous years that weren't picked up, but were worth going back and doing an amendment for. I will definitely be working with them again." Leo: Thank you so much Ellise. That is a brilliant review. A lot of people don't realise that if you missed a deduction last year or even the year before, the team at Aevum Accounting can actually go back and amend your past returns to get that money back for you. Mia: That is such a great strategy. And it ties perfectly into today's topic. We are heading back to the station for the police debrief part 2. Leo: To kick things off, let's do a quick roll call and summarise what we covered back in episode 10, because those foundational rules dictate everything else we are about to discuss. Mia: Exactly. In part one, we covered the ATO's three golden rules. You must have spent the money yourself, it must directly relate to earning your income as a police officer, and you must have a receipt to prove it. Leo: We also covered the commute. You cannot claim your normal drive from home to the station. However, you can claim your car expenses if you are driving from your station to a crime scene, or if you are forced to carry bulky equipment like a heavy evidence kit and there is no secure locker available at work. [CORRECTION, August 2026: the test has three limbs and all must be met: the equipment is essential to perform your duties; it is bulky, meaning awkward to transport because of its size and weight AND only conveniently transportable by motor vehicle; and there is no secure storage at the workplace. The ATO names no specific police item as bulky, and standard police kit will often fail the bulk limb. Understating the test invites a home-to-work car claim that will not survive review.] Mia: And finally, we covered uniforms. You can claim the cost of washing and repairing your official police uniform. And if you are a detective or undercover officer, you can actually claim plain clothes if you are required to buy a specific disguise to blend in for a targeted operation. [CORRECTION, August 2026: undercover only. The ATO's exception covers an undercover officer buying additional conventional clothing for a specific operation, such as clothing worn to pose as a member of a gang. The same guide names "plain clothes police" as an EXAMPLE of conventional clothing that is not deductible, along with business attire worn to give evidence in court. A detective's ordinary plain clothes are not claimable.] Leo: Okay, so that is the part one debrief. But today we are looking at the ATO's latest guidelines for the force, and we need to bust some of the biggest deduction myths floating around the station. Let's start with a highly debated topic: fitness expenses. Mia: A police officer has to be fit to do their job, right? So surely they can claim their gym membership and protein powder. Leo: Generally, the answer is a hard no. The ATO considers standard fitness expenses to be private. Even though you need to maintain a general level of fitness to pass your operational safety assessments, you cannot claim your gym fees. Mia: Are there any exceptions to that rule? Leo: Yes, and this is where it gets interesting. You can claim fitness expenses if your specific role requires a level of fitness well above the ordinary police standard. For example, if you are in the tactical response group, TRG, the special emergency response team, or a specialised diver unit, you can claim your gym memberships and specific fitness expenses because extreme physical fitness is a mandated essential part of that specific role. [CORRECTION, August 2026: the diver unit is the ATO's own worked example and is safe. TRG and SERT are not named anywhere in ATO guidance, and the ATO's general fitness page states plainly that police officers cannot claim fitness expenses. The test has TWO limbs and both must be met: the role requires fitness well above the general occupational standard, AND it involves ongoing strenuous physical activity as an essential and regular part of the duties. Treat this as a facts-and-evidence question for your own posting rather than a green light. Fitness clothing, including tracksuits and running shoes, is never deductible.] Mia: That makes sense. Standard beat cop, no gym claim. Special ops, yes, gym claim. Let's move to another big one: grooming and haircuts. The police force has very strict regulations on how you must look: short hair, clean-shaven, or neatly trimmed beards. Can officers claim their haircuts? Leo: Unfortunately, no. The ATO is incredibly strict on this. You cannot claim haircuts, grooming, or weight loss programs. It doesn't matter if the police regulations explicitly tell you to cut your hair. The ATO still classifies personal grooming as a private living expense. Mia: Speaking of personal expenses, what about glasses and contact lenses? An officer needs 20/20 vision to pass their firearms tests and drive the patrol cars. Can they claim their prescription glasses? Leo: This is another huge myth. No, you cannot claim prescription glasses or contact lenses, even if you strictly need them for work. The ATO says poor eyesight is a personal medical condition. However, if you buy safety glasses or anti-glare sunglasses specifically to protect your eyes on the job, those are deductible. Mia: What about other medical expenses? Police are on the front lines and are exposed to a lot. Can they claim a flu shot? Leo: Again, no. You cannot claim flu shots or other vaccinations. Even if your commanding officer requires you to have them for work, the ATO says they are a private health expense. Mia: All right, let's talk about footwear. The uniform requires black boots. Can I claim the boots I buy for work? Leo: This is a classic ATO trap. If you just buy standard black leather dress boots or running shoes because they match the uniform policy, you cannot claim them. They are considered conventional clothing. [CORRECTION, August 2026: half right and half backwards, and the wrong half is the expensive one. Running shoes, correct, not claimable. BOOTS are a different matter: the ATO allows a deduction for shoes where their colour, style and type are an integral and distinctive part of a compulsory uniform that your employer specifies in the uniform policy. The ATO also confirms that a normal police uniform meets the requirements for a compulsory uniform. So the very fact given here as the reason to DENY the claim, that the boots match the uniform policy, is the ATO's trigger for ALLOWING it. Laundry and repair of those boots is claimable on the same basis.] But if you buy heavy-duty, steel-capped, or anti-slip tactical boots specifically designed to protect you from injury on the job, then you can claim them as protective clothing. It all comes down to the protective nature of the boot. Mia: That is a great distinction. Let's move on to food. Police officers work crazy hours: night shifts and double shifts. Can they claim their meals? Leo: This is a massive trap. Just because you buy dinner while on patrol does not mean it is tax deductible. The ATO says regular meals during a normal shift are a private expense. However, you can claim overtime meals, but only if two strict conditions are met. [CORRECTION, August 2026: there are THREE, and the missing one is the condition the ATO actually uses to deny these claims: the overtime meal allowance must be shown on your income statement and you must declare it as income. Also, the allowance can be paid under an industrial law, award OR AGREEMENT. Police overtime meal allowances usually sit in an enterprise agreement rather than an award, so dropping the word agreement matters.] First, you must receive a genuine overtime meal allowance paid under an industrial law or award. Second, you must actually buy and eat the meal while you are working that overtime. If you just take the allowance and eat a sandwich you brought from home, you cannot claim a deduction. Mia: What if an officer is sent to a rural town for a week-long operation? Leo: That changes things. If you are required to travel and sleep away from your home overnight for work, you can claim the cost of your meals and accommodation, provided the department hasn't fully reimbursed you for it. Mia: Awesome. Now let's talk about levelling up in the force: self-education. Leo: You can claim study expenses if the course directly relates to your current duties. For example, a constable taking a course on advanced interview techniques, or a detective studying criminology. Mia: But what if an officer is studying a Bachelor of Laws because they eventually want to leave the force and become a private lawyer? Leo: That is the trap. The ATO says you cannot claim a deduction if the study is only generally related or if it is designed to help you get a completely new job. So, a law degree to leave the force or a nursing degree is not deductible against your police income. Mia: Got it. All right, what about tools of the trade? The department issues your standard gear, but what if an officer goes out and buys their own upgraded tactical torch or a specialised duty belt? Leo: If you buy equipment out of your own pocket to use on the job, and you aren't reimbursed, you can claim it. But remember the $300 rule. If the torch costs $250, you claim the whole amount immediately. If you buy a massive piece of gear that costs $500, you have to depreciate it and claim the deduction over a few years. Mia: Oh, and here is a really unique one for our specialised units. What if you are a K9 dog handler? Leo: If you are a police dog handler, and you are required to house and care for the police dog at your home, you can claim the out-of-pocket costs for that dog. That includes food, vet bills, and shelter, as long as the department hasn't already reimbursed you for it. [CORRECTION, August 2026: food and vet bills yes. "Shelter" is not supported: the ATO expressly denies the cost of installing security fencing at a private residence for police dogs as capital and private in nature, and a kennel would be treated the same way. Also, the ATO's test is simply that you incur the costs of maintaining and training the dog and are not reimbursed. There is no requirement that you be directed to house the dog at home.] Mia: Now let's talk about technology. Every officer has a smartphone. Can they claim their phone and internet bills? Leo: Yes, but with a massive catch. You can claim the work-related portion of your phone and internet, but only if you use it for actual police work. The ATO has specifically stated that you cannot claim phone or internet use if you are only using it to call your manager to check your shifts, or using your home internet just to log into the portal to check your roster or payslips. [CORRECTION, August 2026: the ATO has stated no such thing about police officers. The nearest rule applies only to CASUAL employees, covering calls or texts about work availability, and police officers are not casual employees. Do not strip roster, shift and payslip access out of your work-use apportionment on the strength of this. The real trap, which the episode does not mention, is the opposite one: if you use the fixed rate method for working from home, phone and data are already inside that rate and cannot be claimed again separately.] Mia: So, just looking at your roster doesn't count. You actually have to be making work calls or doing police research. Leo: Exactly. Finally, Mia, let's circle back to Ellise's review from the start of the episode regarding missed deductions. Most police officers are part of the police union or police association. Mia: And those union fees are 100% tax deductible. We see so many officers forget to give these statements to their accountant. If you are listening to this and realise you forgot to claim your police union fees for the last two years, call Aevum Accounting. Just like the team did for Ellise, they can easily amend those past returns and get that cash back into your pocket. Leo: It is all about having a professional team who knows your specific industry inside and out. Don't guess what you can claim, and don't take tax advice from another cop in the lunchroom. Mia: Exactly. Visit aevumaccounting.com.au to book your tax appointment with the team today. They will make sure you are claiming exactly what you are entitled to, safely and legally. Leo: Thank you for joining us for episode 43. We hope today's discussion has provided our men and women in blue with 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 the qualified professionals at Aevum Accounting. Mia: Until next time, stay savvy, stay proactive... Leo: ...and stay safe out there.