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Key Takeaways
- Childcare workers can claim expenses like uniforms, protective items, training courses, car travel, and work-related phone use
- You can only claim items you paid for in full, anything reimbursed by your employer cannot be included
- Keeping receipts and a simple logbook throughout the year makes tax time much easier
- Some of the most valuable deductions are ones many childcare workers don’t know they’re entitled to
What tax deductions can childcare workers claim?
Whether you’re a childcare worker, early childhood educator, nanny, kindergarten assistant or pre-school aide, you’re entitled to a range of tax deductions that could significantly increase your refund. This guide covers every deduction category recognised by the ATO, from uniforms and training to car use and mobile phones, so you can feel more prepared this tax time!
Uniform and clothing expenses
If you’re required to wear any branded clothing to work, the purchase costs are tax deductible. This includes shirts, hats, pants or skirts. The general rule is if it’s company specific, then it is tax deductible.
You cannot claim items that are available to the general public like plain black pants or a black skirt, even if they’re required as part of your uniform by your employer.
You can also claim laundry and cleaning costs for eligible work clothing. Keep track of how many washes you do per week and whether you washed these items separately or with other clothing. The Etax return will do the maths for you, to ensure you get the maximum claim.
Protective items
If you do arts and crafts, cooking or outdoor activities, you may also purchase items such as:
- Aprons
- Smocks
- Gloves
- Sun protection (hats, sunscreen, sunglasses)
- Protective footwear
If these items are on your shopping list each year, make sure you include them on your tax return.
Important: You can only claim items that you’ve paid for yourself. If your employer provides any of the above items or reimburses you, you can’t include those items on your tax return.
Training and self-education expenses
Training is a common expense for childcare workers. The role often requires ongoing training to meet necessary industry requirements.
If a course directly relates to your current job, the fees and related expenses are usually tax deductible. Common self-education deductions include:
- Certificates
- Diplomas
- Professional development courses
- Textbooks or manuals required for training
- Stationery
- Equipment and materials required
- Blue card renewals (not the initial application)
- Travel expenses including flights, transport, meals and accommodation (if required to stay overnight).
To learn more, read our self-education expenses deduction guide.
Car expenses
If you’re ever required to pick up supplies, attend meetings at other sites, go on excursions, attend sporting events or training courses, the cost of using your car is usually tax deductible. (Note that you cannot claim travel from home to work and back).
For most childcare workers, work-related travel is occasional, so the cents per kilometre method is usually best. Be sure to keep track of the kilometres you travel, as you can claim up to 5,000 km per year. If you drive frequently as part of your job, the logbook method may be more beneficial to you.
Have a look at our car expenses deductions guide for the different ways you can claim and decide which method works best for you. At tax time, our team of friendly accountants can help decide which method gets you the biggest refund.
Childcare equipment and materials
Childcare workers often supply items for the children in their care that are not paid for by their employer. Some common examples to include when adding your childcare worker deductions to your tax return:
- Teaching aids
- Art and craft materials
- Musical instruments
- Prizes
- Toys
- Stationery
- Food and toiletries
Remember to keep track of receipts as you go and make sure you only claim it if you aren’t reimbursed for the purchases.
Mobile phone expenses
It’s not unusual for childcare workers to use their personal phone to contact other staff members, parents, or write and respond to emails etc.
If you make (or receive) calls for work on your personal phone, it’s likely you can claim a portion of your monthly bill as a tax deduction. To work out your claim, review a typical monthly bill and calculate the percentage that relates to work, compared to personal use. You can then claim that work-related portion of your bill as a deduction on your tax return.
Example: Claiming mobile phone expenses
Julie is a kindergarten supervisor and uses her personal phone to call staff to cover shifts and contact suppliers. As a result, these costs are tax deductible. She chose a monthly phone bill that was an accurate representation of a ‘typical’ month.
She made 24 calls in total and 12 were work-related, meaning 50% of her phone use was for work. Julie pays $49 per month for her phone bill, so she can now claim half of that back on her tax return.
$49 x 50%= $24.50
$24.50 x 11 months (1 month of annual leave) = $269.50 that Julie can claim on her yearly tax return!
Other tax deductions childcare workers often miss:
You may also be able to claim:
- Association or union fees
- Work-related books or library additions
- Work-related internet (you can claim the percentage of your bill that applies to work related use)
- Organising and attending excursions, day trips or events
- Donations to registered charities provided you did not receive anything in return (e.g. raffle tickets)
- Last year’s tax agent fees
Read more about the top 5 most commonly forgotten tax deductions here.
Frequently asked questions for childcare workers
Childcare workers can claim deductions for work-related uniforms, protective items, training courses, car travel, equipment, materials, and a portion of their mobile phone bill. The exact amount depends on your individual circumstances and what you paid for yourself.
Yes, if you wear clothing with your employer’s logo or branding, you can claim the purchase and laundering costs. You cannot claim plain or generic clothing such as black pants, even if your employer requires you to wear them.
Yes. Sunscreen, hats, and sunglasses purchased for outdoor supervision and activities are claimable as protective items, provided you paid for them yourself and were not reimbursed by your employer.
Yes. Blue Card renewal fees are tax deductible for childcare workers. However, the cost of your initial Blue Card application is not claimable.
Yes, if you purchased teaching aids, art supplies, toys, or similar materials out of your own pocket and your employer did not reimburse you, these costs are generally tax deductible.
You can claim work-related car travel, such as driving between sites, attending training, or collecting supplies. The two main methods are the cents per kilometre method (up to 5,000 km per year) and the logbook method. You cannot claim the trip between your home and your regular place of work.
Yes. If you use your personal phone for work calls, emails, or messages, you can claim the work-related percentage of your monthly bill. Review a typical month’s bill, calculate the percentage of work-related use, and apply that figure to your annual costs.
For most claims over $300, you will need written evidence such as receipts. For claims under $300, you may not need receipts, but you should still be able to explain how you calculated the amount. It is good practice to keep all receipts throughout the year.
Etax makes lodging your tax return as simple and easy as possible.
Should you have any questions regarding your tax deductions or entitlements, please don’t hesitate to contact us at [email protected].
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