Paramedics Tax Playbook Part Two: The Ultimate Pre-EOFY Guide

Welcome, to the podcast our newsletter made easy. Please note, this podcast features AI-generated voices for your hosts, Mia Taylor and Leo Baker, bringing you expert insights from owner Ben De Rosa 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. We'll cut through the jargon to give you strategies for compliance, smart planning, and that ultimate peace of mind. So if you're looking to understand your obligations, maximize 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. This week, we have a fantastic review from Ben O'Regan, who is actually one of our hardworking paramedics over at St John. He writes, "Excellent service. Ben and his team were very personable and attentive to my questions." Thanks so much, Ben. We always love looking after the St John crew. And the timing of this review couldn't be better. We are currently in April 2026. The end of the financial year is just three short months away. The clock is ticking. Because Ben De Rosa basically does the tax returns for half the paramedics in Western Australia, we decided it was time for the ultimate mega episode: the Paramedics Tax Playbook Part Two. We wanted to create an all-in-one resource. So if you are a new listener, don't worry about digging through the archives to find part one. We are going to quickly recap the golden rules from that episode and then dive into brand new territory, busting some massive myths around smartwatches, study, and footwear. But before we get technical, for our new listeners, we have to mention our favourite Aevum Accounting story. The reason Ben is so passionate about paramedic tax returns is because a few years ago, he took a bit of a tumble outside a popular bar in Perth. He had a mild concussion and a team of dedicated paramedics arrived to patch him up. And what did Ben do? While sitting on the pavement, holding an ice pack to his head, he relentlessly pitched them on letting him do their tax returns. He proudly told them he already completes a lot of paramedic tax returns across Australia. They were very concerned for his health, but highly amused by his networking skills. And it worked. That connection to the frontline community has only grown. So to all the paramedics listening, thank you for what you do. Now let's make sure the ATO doesn't take a cent more than they should. Let's kick off with the recap. The foundation of any tax claim comes down to the ATO's three golden rules. To claim a deduction for work-related expenses, you must have spent the money yourself and weren't reimbursed. It must directly relate to earning your income. You must have a record to prove it. And remember, you can only claim the work-related portion of an expense. You can't claim a deduction for any part of an expense that does not directly relate to earning your income. To make record keeping easy, you can use the MyDeductions tool in the ATO app to keep track of your expenses and receipts throughout the year. Let's talk about driving. This is where a lot of paramedics get caught out. You can't claim the cost of normal trips between home and work, even if you live a long way from your usual workplace or have to work outside normal business hours. But there are exceptions. You can claim the cost of using a car you own when you drive directly between separate jobs on the same day. You can also claim if you drive to and from an alternative workplace for the same employer on the same day. And you can claim from home directly to an alternative workplace, like travelling from home to work at a station other than your normal station for the day. If you are claiming those trips, you generally use the cents-per-kilometre method or a 12-week logbook. Just remember, if you use one of those methods, you can't claim any further deductions in the same tax return for the same car like petrol, servicing, or insurance costs. What about travel and meals? You can claim travel expenses if you travel away from your home overnight in the course of performing your employment duties. This can include meals, accommodation, fares, and incidental expenses. But you can't claim a deduction if the travel is paid for or you are reimbursed by your employer. For day-to-day meals, you can't claim the cost of food, drink, or snacks you consume during your normal working hours, even if you receive an allowance. These are private expenses. However, if you receive an overtime meal allowance under an industrial law, award, or agreement and it's included in your assessable income, you can claim the cost of the meal that you buy and eat when you work overtime. Okay, recap complete. Now, let's get into the new stuff. Ben is seeing a lot of mistakes this year, starting with footwear: the black shoes rule. A lot of paramedics are told by management, "You must wear black shoes on shift." So they go to a sports store, buy a pair of black runners for $250, and claim them. Is that allowed? Absolutely not. The ATO has cracked down on this. You can't claim the cost to buy, hire, repair, or clean conventional clothing you wear for work, even if your employer requires you to wear it. Conventional clothing is everyday clothing worn by people—for example, gym attire, plain shirts, or sneakers. To claim clothing or footwear, it must be protective. We are talking heavy-duty steel-cap boots or specialised non-slip safety shoes to protect your feet from dropped stretchers. Or it must be a compulsory uniform you're explicitly required to wear by a workplace agreement or policy which is strictly and consistently enforced and is sufficiently distinctive to your organisation. Plain black sneakers do not make the cut. Speaking of getting fit for the job, what about the gym? Paramedics do incredibly heavy lifting. Can they claim their gym membership? Generally no. You can't claim fitness expenses such as gym fees to maintain your fitness. The ATO views this as a private expense. But there is a tiny exception for the elite teams, right? Yes, in very limited circumstances, you can claim fitness expenses if your role requires you to maintain a fitness level well above the normal paramedic standard and strenuous physical activity is an essential and regular part of your work. For example, paramedics who work in specialist rescue operations and are regularly tested on their fitness—such as vertical access, whitewater survival, and snowfield work. If you are standard general duties, the gym is on you. Okay, let's tackle the biggest tech myth: the smartwatch trap. Every paramedic I see has an Apple Watch or a Garmin to check vitals and log times. And everyone wants to claim the $800 receipt, but the ATO knows you also use that Apple Watch to read your texts and track your private runs. If you want to claim an expensive smartwatch, you must apportion it for private use. You need a meticulous diary showing exactly how much it's used for work versus personal life. What's the safer alternative? You can claim tools and equipment such as a stethoscope or a fob watch. A fob watch pinned to your scrubs is 100% work-related. If a tool costs more than $300, you must claim the cost over several years as a decline in value. What else are paramedics forgetting to claim or wrongly claiming? Let's do a rapid-fire yes and no list. Yes, you can claim the work-related portion of phone and internet costs with records showing your work-related use. Yes, you can claim sunscreen, sun hats, and sunglasses where your duties require you to spend prolonged periods working outdoors. Yes, union and professional association fees are claimable. Yes, you can claim personal protective equipment you buy such as gloves or face masks. And the no list? No, you can't claim getting or renewing your normal driver's licence. However, you can claim additional costs you incur to renew a special licence or condition on your licence in order to drive the ambulance vehicle, like a heavy vehicle permit. No, you can't claim flu shots and other vaccinations, even if you're required to have them for work. No, haircuts or grooming. No, rent or other living expenses, even if you are working at a different station or a remote location for an extended period. Let's pivot to something where paramedics can claim a lot: upskilling and study. The profession is always evolving, with many studying to become Intensive Care Paramedics, ICPs, or taking specialised rescue courses. If you are studying a course that directly improves the specific skills you use in your current job, the costs are deductible. This includes textbooks, laptop depreciation, internet usage, and the travel to get to the campus. But there is a massive trap with university fees. Huge trap. If your degree is a Commonwealth Supported Place, CSP, and you use a HECS-HELP loan, the course fees are not deductible. However, if you are paying full fee tuition, FEE-HELP, or paying for independent short courses out of pocket, those are generally deductible. And speaking of HECS, we have to end with the ultimate warning about salary packaging. Paramedics have access to incredible benefits like packaging $9,010 for living expenses—mortgage, rent—and $2,650 for meal entertainment using pre-tax dollars. It saves you thousands. But using those caps creates a Reportable Fringe Benefit Amount, RFBA, on your income statement. This artificially inflates your income for government testing purposes. If you have a HECS debt, the RFBA can push you into a higher repayment bracket, resulting in a surprise $3,000 to $5,000 tax bill in July. Which is exactly why you cannot DIY your tax return if you are a paramedic. Exactly. We are in April. The financial year ends in three months. If you wait until July 1st, it is too late to fix your logbook, sort out your salary packaging traps, or prep your study receipts. Ben De Rosa and the team at Aevum Accounting know your awards, your allowances, and your industry inside and out. Get ahead of the end of year rush. If you are a paramedic anywhere in Australia, go to our website today and book your 2026 tax return session. Let the experts maximise your return. We hope today's discussion has provided you with valuable insights. 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. 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. And remember, if you see Ben out and about in Perth, tell him to watch his step. That brings us to the end of this episode. Thank you to all the first responders tuning in. Until next time, stay safe, stay savvy, and get those receipts organised. See ya.