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How Tax Can Help The Employer AND the Employee


The tax time of year can actually produce a win/win situation for both your company and your staff by providing opportunities and incentives for them that can be claimed back. Opening up the discussion to your employees could provide plenty of opportunities for them to engage in your business and the industry.


From self-education to sun protection, there’s plenty ways tax claims have got your back – here’s just some of the tax-deductible claims that could produce a winning formula of productivity and skills for both yourself and your staff:


Self education tools – this is a win/win, not only do your employees get to learn, but their education will grow the expertise and skills of your business, at no cost to you!


Taxation ruling 98/9 states that self-education expenses can be allowed as deductions where they have relevant connection to the taxpayer’s current income earning activities.


The good thing for the employers is that any courses that would be relevant to a profession or employment that’s not related to your business isn’t deductible, so you don’t need to worry about your staff learning fast and cutting quick on you!


Work related books or magazines are deductible too – as long as they’re relevant to the industry of work. Taxation ruling 95/9 states that: the direct connection of books and equipment to an employee’s current income-earning activities is allowable for deduction. Of course it can’t be too generic, and needs to appropriately reflect relevance for the income-earning activity, but that’s a great way to get staff engaged in commentary and news relevant to the industry.


Dry cleaning uniforms can also be claimed – which means your staff stay tidy, your business always looks good, and it doesn’t mean any cost is lost!


The dangers of sun damage can wreak havoc for staff such as subcontractors working long hours under the sun. Sun protection items such as sunscreen, hats and sunglasses are also tax-deductible, meaning staff stay safe without wearing the cost of it – physically and financially.


And it even gets industry specific too: photographers are allowed to claim back the work related portion of their pay TV rental (for which they use as research) as well as any costs for parties or social functions where they’ve had to attend and photograph, while fitness instructors can claim the cost of attending competitions, including entry fees!


As a small business owner, understanding the different ways to create incentives and opportunities to benefit your staff is vital – but if it means that your business is benefitted too, then it’s truly a win/win. For more information on tax including deductible claims or getting prepared for the end of the tax year, see your small business accountant, or contact MAS Accountants – the original accounting office for small business in Sydney.