A Tax Guide for Police Officers and Detectives
This guide provides a general overview of tax deductions and other financial considerations for you as a police officer or detective, 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 your home and work, even if you work night shifts or on public holidays.
You can claim the cost of using a car you own when you drive:
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Directly between separate jobs on the same day (e.g., from your police role to a second job as a security guard).
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To and from an alternative workplace for the same employer (e.g., from your station to a crime scene).
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From your home directly to an alternative workplace (e.g., travelling to a different station for the day).
A special rule allows you to claim travel between home and work if you have to carry bulky tools or equipment that are essential for your job, and there is no secure place to store them at work.
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 police officers, 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 a deduction for a course that directly relates to your current role and either:
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Maintains or improves the specific skills and knowledge for your current duties.
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Is likely to result in an increase in income from your current job.
You cannot claim a course that is only generally related to your role or is designed to help you get a new job.
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You can claim the cost of buying, hiring, repairing, or cleaning clothing if it is:
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A compulsory uniform that you are explicitly required to wear and is distinctive to your organisation.
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Protective, meaning it has features to protect you from specific risks of illness or injury at work.
You cannot claim for conventional clothing, like business attire or gym wear. An exception exists for undercover officers and detectives, who may be able to claim for conventional clothing bought for a specific operation. You cannot claim if you have been reimbursed for these costs.
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You can claim the work-related portion of your phone, data, and internet costs, but you must have records to show your work-related use. You cannot claim for minimal use, such as only calling your manager about shifts or checking payslips online.
You can claim the work-related portion of other expenses like:
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Union and professional association fees.
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Technical or professional publications.
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As a WA Government employee, you have access to salary packaging, which is administered by Smartsalary. 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.
Unlike the health sector, police officers and detectives are not eligible for the capped benefits for general living expenses or meals and entertainment. However, you can still package other items, most commonly a novated car lease. A novated lease allows you to bundle all your car's finance payments and running costs (like fuel, insurance, and servicing) into one payment, using a combination of pre-tax and post-tax funds.
A novated lease is a type of fringe benefit. It will appear as 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 about your specific circumstances. We can help you understand the full impact and ensure any salary packaging is structured effectively for you.
You can call us on (08) 6117 9219, or send us an email at reception@aevumaccounting.com.au
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