Tax Deductions for Adult Industry Workers
If you're working as an adult industry workers, there are 33 categories of work-related expenses you may be able to claim. Below you'll find every deduction the ATO lists for your occupation — in plain English.
This guide covers 33 deduction categories with 224+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
Deduction Categories
33
Specific Items
224
Income Types
0
Work-Related Deductions (33)
Amounts you do and don't include
- salary and wages, including cash-in-hand, cash tips or gratuities and bonus payments
- compensation and insurance payments – for example, payments made under an income protection insurance policy to replace salary and wages.
- You must include all the income you receive during the income year as an employee in the adult industry in your tax return, this includes:
- Don't include as income any reimbursements you receive.
- Your income statement or payment summary will show all your salary, wages and allowances for the income year.
Allowances
- to help you pay for a work expense – for example, tools and equipment
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, attendance before commencement of employment
- as an amount for having special duties, skills or qualifications – for example, first aid qualifications.
Example: allowance for laundry expenses
- Wanda serves drinks in an adult dance club. Wanda must wear a compulsory uniform when she is working. Her uniform is a t-shirt and a black skirt, both which have the club's name on them.
- Wanda's employer gives her the uniform, but Wanda is responsible for laundering it.
- Wanda receives a laundry allowance of $4 per week for laundering her uniform. The allowance is shown on Wanda's income statement at the end of the income year.
- Wanda must declare the allowance as income in her tax return.
- Wanda can claim a deduction for the expenses she incurs to wash and iron her compulsory uniform.
Allowances not on your income statement or payment summary
- don't include it as income in your tax return
- can't claim any deductions for the work expenses the allowance covers.
- include the allowance as income in your tax return
- include a claim for the work expenses you incur in your tax return
- must have records of your expenses.
Allowances and claiming a deduction
- The following table sets out allowances you may receive and when you can claim a deduction.
- Example of allowance type
- Deductible (Yes or No)
- Compensation for an aspect of your work that is unpleasant, special or dangerous or for industry peculiarities
- Attendance before commencement of employment
- These allowances don't help you pay for deductible work-related expenses
- An amount for certain expenses
- If you incur deductible expenses
- An amount for special skills
- A first aid certificate
- Ricky is an employee dancer at an adult entertainment club. As Ricky appears nude or semi-nude, his employer pays him a nude allowance of $25 per week.
- The allowance is shown on Ricky's income statement at the end of the income year.
- Ricky must declare the allowance as income in his tax return.
- Ricky can't claim a deduction. The allowance he receives compensates him for his special working conditions. The allowance doesn't cover any expenses Ricky might incur.
Reimbursements
- you don't include the reimbursement as income in your tax return
- you can't claim a deduction for the expenses.
- Deductions for work expenses
- Record keeping for work expenses
Advertising
- You can claim a deduction for the total cost of advertising your services in the adult industry if it results in you earning income in addition to your salary and wages, for example, commission or bonuses.
Agency commissions and agency fees
- You can claim a deduction for commission payments you make to an agency.
- You can't claim a deduction for the upfront costs of joining or using the services of an employment and recruitment agency or an agent to get work.
- You can't claim a deduction if your employer pays the commission, upfront fees, joining fees or search fees to an agency.
Example: agency commission
- Zahra is an employee exotic dancer through an agency. She works one night at a club and is paid $700. Zahra pays commission of $48 to the agency.
- Zahra must declare $700 as income in her tax return. Zahra can claim a deduction of $48 for the commission she pays. She incurs the fees in the course of earning her wages.
Audition expenses
- You can't claim a deduction for the cost of preparing for or attending auditions. You incur these costs to get work and not as an employee undertaking your employment activities.
Car expenses
- live a long way from your usual or regular workplace
- work outside normal business hours.
- directly between separate jobs on the same day (provided neither of the workplaces is your home) – for example, travelling directly to the club from your second job as a retail assistant
- to and from an alternative workplace for the same employer on the same day – for example, if you travel from client to client
- from home directly to an alternative workplace – for example, travelling from home to a workplace that is not your regular work location.
- own the car
- lease the car (directly from the finance company)
- hire the car under a purchase agreement (with the car dealership or a finance company).
- vehicle with a carrying capacity of one tonne or more (such as a ute)
- vehicle that can transport 9 passengers or more (such as a minibus).
Example: shifting workplace
- from her home to the first client
- between the clients' addresses
- from the last client to her home.
Example: home to work travel not deductible
- Ben is an employee escort. Generally, Ben's appointments are organised in advance. During shifts when he has no appointment, he is on call. If a client calls his employer during a shift Ben doesn't have an appointment, they call him and let him know where and when he needs to meet the client. Ben only has an appointment to see one client per shift.
- Ben can't claim a deduction for expenses he incurs in travelling from his home to his appointments. He doesn't incur the expenses in the course of earning his income, they are private.
- Although Ben often attends different locations to carry out his duties, he doesn't have shifting workplaces. This is because Ben doesn't continually travel to different appointments before he returns home at the end of his shift.
Child care
- You can't claim a deduction for child care (including school holidays and before and after school care) when you’re working. It’s a private expense, and the expenses have no direct connection to earning your income.
Clothing and uniform expenses (including footwear)
- protective clothing – clothing with protective features and functions you wear to protect you from specific risks of injury or illness at work. For example, steel-capped boots, fire-resistant clothing, or boiler suits that protect conventional clothing. Conventional clothes you wear at work are not protective clothing if they lack protective qualities designed for the risks of your work. This includes jeans, drill shirts, shorts, trousers, socks and closed shoes.
- conventional clothing for a costume – clothing that is bought or hired specifically for your work and which is not used for private purposes. For example, a burlesque dancer can claim costumes and dance shoes that are distinctive to role.
- a compulsory uniform – clothing that your employer strictly and consistently enforces you wear by workplace agreement or policy and distinctly identifies either you as an employee working for a particular employer
- the products or services your employer provides
- a non-compulsory uniform – a uniform that is not compulsory to wear and that your employer registers on the Register of Approved Occupational Clothing.
Example: occupation specific clothing
- Candice is an employee dancer at an adult entertainment bar. Her employer requires her to wear costumes that are not conventional in nature when she is working.
- Candice can claim a deduction for the cost of buying and cleaning these items as they are occupation specific.
Consumables
- You can claim a deduction for consumable items you use solely for earning your income as an employee in the adult industry. This includes items such as condoms, lubricants, gels, oils and tissues.
Drivers licence
- You can't claim a deduction for the cost to get or renew your drivers licence , even if you must have it as a condition of employment. This is a private expense.
Entertainment and social functions
- work breakfasts, lunches or dinners
- attendance at sporting events as a spectator
- gala or social nights
- concerts or dances
- cocktail parties
- other similar types of functions or events.
First aid courses
- a designated first aid person
- need to complete a first aid training course to assist in emergency work situations.
- You can claim a deduction for the cost of first aid training courses if you are both:
- You can’t claim a deduction if your employer pays for or reimburses you for the cost of the course.
Fitness expenses
- Adult industry expenses G–O
- Adult industry expenses P–S
- Adult industry expenses T–W
Glasses, contact lenses and anti-glare glasses
- You can't claim a deduction for prescription glasses or contact lenses , even if you need to wear them while working. These are private expenses.
Grooming expenses
- you may receive an allowance for grooming
- your employer expects you to be well groomed when at work.
- You can't claim a deduction for grooming expenses such as, hairdressing, cosmetics, hair and skin care products, even if:
- You can claim a deduction for stage makeup and products you use for removing stage makeup.
- Some brands of makeup sold in department stores are considered stage makeup, and some stage makeup stores sell makeup that isn't greasepaint based. In both cases, you can claim the costs of this makeup.
Example: grooming expenses
- Fiona is an exotic dancer. Fiona's employer expects her to be well groomed and to wear her makeup in a particular way.
- When she is dancing, Fiona uses a lot of hair spray to keep her hair in place. Fiona wears stage foundation, powder and lipstick but uses general makeup products for everything else. She only uses the stage makeup for work.
- To keep her hair in good condition and remove the build-up of hair spray, Fiona has a hair treatment at her hairdresser every week.
- Fiona can claim a deduction for the cost of the stage makeup (foundation, powder and lipstick) she buys to wear on stage.
- Fiona can't claim a deduction for her normal makeup or her hair treatments. These are private expenses.
Laundry and maintenance
- occupation-specific and not a conventional, everyday piece of clothing such as jeans or general business attire
- a uniform either non-compulsory and registered by your employer on the Register of Approved Occupational Clothing or compulsory.
- $1 per load if it only contains work-related clothing from one of the categories above
- 50c per load if you mix personal items of clothing with work-related items.
Example: laundry for compulsory uniform
- Tom is a bartender at an adult entertainment club. His employer provides work shirts with the company logo which must be worn when he is at work. Tom must also wear smart black pants.
- Tom can claim a deduction for the laundering of his work shirts as the logo makes them unique and distinctive to the organisation he works for. He can't claim the cost of the shirts as he didn't incur the expense.
- Tom can't claim a deduction for buying or laundering of his work pants even though he only wears them to work. Black pants without a logo or other features are not unique and distinctive to the organisation where he works. They are conventional items of clothing even though he only wears them to work.
- Tom works for 50 weeks during the income year and washes his shirts twice a week in a mixed load with other clothes.
- Tom calculates his laundry claim as follows:
- Number of claimable laundry loads per week × number of weeks worked = total number of claimable laundry loads
- 2 × 50 weeks = 100 weeks
- Total number of claimable laundry loads × reasonable cost per load = total claim amount
- 100 × $0.50 per load = $50
- Tom can claim a deduction of $50 for laundry expenses. As Tom's total deduction for laundry expenses is under $150, he isn't required to keep written evidence of his laundry expenses. However, if asked, Tom will still be required to explain how he calculated his claim.
Massage expenses
- You can’t claim a deduction for the cost of massage or other alternative therapies, these are private expenses.
Meal and snack expenses
- overtime meal expenses , but only if you buy and eat the meal while you are performing overtime and you receive an overtime meal allowance under an industrial law, award or agreement
- the cost of meals you incur when you are travelling overnight for the purpose of carrying out your employment duties (travel expenses) .
- You can't claim a deduction for the cost of food, drink or snacks you consume during your normal working hours, even if you receive a meal allowance. These are private expenses.
Example: no deduction for meal expenses
- Billy works in an adult entertainment bar. During his shift, he gets a 30 minute meal break. During his break, Billy buys some fruit, almonds and large bottle of water to eat and drink while he is on his break and during the remainder of his shift.
- Billy can't claim a deduction for the food and drink he buys. It is a private expense.
Multimedia
- You can claim a deduction for the work-related part of the cost of multimedia, if it's directly related to your current employment as an employee in the adult industry. For example, you download music files to use for rehearsals.
Example: music downloaded for routine
- Lucy is an employee exotic dancer. On each of her shifts, Lucy does several routines to different songs. Lucy's employer asks her to provide the music for her routines so there is no mix up with other dancers during the shift. Lucy pays to download each song and for the USB stick she saves them onto.
- Lucy can claim a deduction for the cost of the songs she downloads, and the USB stick she uses to save them onto.
Newspapers and other news services, magazines and professional publications
- a direct connection between your specific work duties and the content
- the content is specific to your employment and is not general in nature.
- The cost of newspapers, other news services and magazines are generally private expenses and not deductible.
- You can claim a deduction for the cost of buying or subscribing to a professional publication, newspaper, news service or magazine if you can show:
- If you use the publication for work and private purposes, you can only claim the portion related to your work-related use.
Overtime meal expenses
- you receive an overtime meal allowance under an industrial law, award or agreement
- the allowance is on your income statement or payment summary as a separate allowance
- you include the allowance in your tax return as income.
- up to reasonable amount, you don’t have to get and keep receipts
- more than the reasonable amount, you must get and keep receipts for your expenses.
- you spent the money
- how you worked out your claim.
Example: overtime meals with an allowance
- Adult industry expenses A–F
- Adult industry expenses P–S
- Adult industry expenses T–W
Parking fees and tolls
- You can't claim a deduction for parking at or near a regular place of work. You also can't claim a deduction for tolls you incur for trips between your home and regular place of work. These are a private expense.
- You can claim a deduction for parking fees and tolls you incur on work-related trips.
Example: deduction for parking fees and tolls
- Marnie is an employee exotic dancer. At the start of each shift, Marnie is provided with a list of clients to visit and their addresses. Marnie uses her own car to travel from home to each of the clients on her list.
- On some occasions, Marnie pays for parking near the venue the client engages her to dance at. When travelling between her clients during her shift, Marnie also incurs tolls occasionally.
- Marnie can claim a deduction for the parking fees and tolls she incurs when she is travelling between client visits on her shift.
Example: no deduction for parking fees
- Bob drives his own car to work each day and parks in the secure parking centre next to the adult entertainment club he works at.
- Bob can't claim the cost of parking at his regular place of work.
Phone, data and internet expenses
- provides you with a phone for work and pays for your usage
- reimburses you for the costs you incur.
- Mobile phone, mobile internet and other devices
- Home phone and internet expenses
Example: calculating phone expenses
- Adele uses her mobile phone to contact her manager and clients while she is working. Adele is on a set plan of $49 a month.
- She receives an itemised account from her phone provider each month that includes details of her individual phone calls.
- At least once a year, Adele prints out her account and highlights her work-related phone calls. She makes notes on her account for the first month about who she is phoning for work. For example, her manager and her clients.
- Out of the 300 phone calls she has made in a 4-week period, Adele works out that 150 (50%) of the individual phone expenses billed to her are for work. She applies that percentage to her monthly plan amount ($49 a month).
- Since Adele was only at work for 46 weeks of the year (10.6 months), she calculates her work-related mobile phone expense deduction as follows:
- Total work calls ÷ total number of phone calls = work use percentage for phone calls:
- 150 ÷ 300 = 0.50 (that is 50%)
- Adele can claim 50% of the total bill of $49 for each month for work purposes, that is:
- $49 × 0.50 = $24.50
- Adele's total expense for work-related phone calls is:
- 10.6 months × $24.50 = $259.70
Example: work and private use
- Sylvanna uses her computer and personal internet account at home to access her work emails, client details and manage her appointments. Sylvanna uses her computer and the internet for work and private purposes.
- Sylvanna's internet use diary showed 40% of the time she spent using the internet was for work-related activities and 60% was for private use. As her internet service provider charge for the year was $1,200, she can claim:
- $1,200 × 0.40 = $480 as work-related internet use.
- If anyone else was accessing the internet connection, Sylvanna needs to reduce her claim to account for their use.
Photographs
- You can claim a deduction for the cost of maintaining a photographic portfolio for publicity purposes. You can't claim a deduction for the initial cost of preparing the portfolio.
Example: portfolio for work purposes
- Sunita is an employee of an escort agency. Sunita decides to update her photographic portfolio because others who have done so using a particular photographer, now have more appointments.
- Sunita pays the photographer $650 for a photo shoot and for a copy of the updated photos to include in her portfolio.
- Sunita can claim a deduction of $650 for the cost of updating her photographic portfolio.
Removal and relocation expenses
- You can’t claim a deduction for the cost to transfer or relocate to a new work location. This is the case whether the move is a condition of your existing job or you are taking up a new job.
Repairs to tools and equipment
- You can claim a deduction for repairs to tools and equipment you use for work. If you also use them for private purposes, you can only claim an amount for your work-related use.
Self-education expenses
- maintains or improves the skills and knowledge you need for your current duties
- results in or is likely to result in an increase in your income from your current employment.
- doesn't have a connection with your current employment
- only relates in a general way to your current employment or profession
- enables you to get employment or change employment.
- Higher Education Loan Program (HELP) (FEE-HELP and HECS-HELP)
- VET Student Loans (VSL)
- Australian Apprenticeship Support Loans (AASL)
- Student Financial Supplement Scheme (SFSS)
- Student Start-up Loan (SSL).
Example: course related to current employment
- Dan produces and directs adult movies. He decides to enrol in an advanced diploma of screen and media (film and television). The course covers production techniques and processes, directing techniques and processing and advanced editing, post-production and visual effects.
- Dan pays for his course fees, reference books and other materials.
- Dan can claim a deduction for the self-education expenses he incurs. The course will maintain and improve the knowledge and skills he requires to do his job.
Example: course to change employment
- Allanah is a burlesque dancer. Due to some injuries and long working hours, Allanah no longer wants to be a full-time dancer. Allanah decides to become a lawyer and starts studying a Bachelor of Laws degree part-time.
- Allanah can't claim a deduction for the cost of undertaking her law degree. The course will enable Allanah to change her employment and it doesn't allow her to maintain or improve the knowledge she requires to be a burlesque dancer.
Seminars, conferences and training courses
- You can claim for the cost of seminars, conferences and training courses that relate to your work as an employee in the adult industry.
- The costs you can claim includes fares to attend the venue where the seminar, conference or training course is held and registration costs. If you need to travel and stay away from home overnight to attend such an event, you can also claim the cost of accommodation and meals.
- You may not be able to claim all of your expenses if attending a seminar, conference or training course is for both work-related and private purposes. If the private purpose is incidental, such as a catered lunch or a reception for delegates, you can still claim all your expenses. However, if the main purpose is not work-related, such as a holiday, you can only claim the direct costs. Direct costs include the registration costs.
- Where you have a dual purpose for attending the seminar, conference or training course – for example you add a holiday of one week to a training course that runs for one week, then you can only claim the work-related portion.
Example: deductible conference expenses
- Gwyneth is an actor in the adult industry. Each year she pays the fee to attend an adult entertainment conference to maintain or increase the knowledge, capabilities or skills she needs to earn her income in her current employment.
- Gwyneth can claim a deduction as she incurs the expense and her employer doesn't reimburse her.
Example: study to improve skills for a current job
- Adult industry expenses A–F
- Adult industry expenses G–O
- Adult industry expenses T–W
Taxi, ride-share, public transport and car hire
- You can claim a deduction for transport costs if you travel in the course of performing your work. For example, taking a taxi from your regular workplace to another work location.
- You can’t claim a deduction for transport expenses you incur to travel between home and your regular place of work, these are private expenses.
- You can't claim a deduction if your employer reimburses you for these expenses.
Tools and equipment
- you use it mainly to produce non-business assessable income
- it's not part of a set that together cost more than $300
- it's not identical, or substantially identical to, other items that together cost more than $300.
- cost more than $300
- is part of a set that together cost more than $300
- is identical, or substantially identical to, other items that together cost more than $300.
Example: cost of tools and equipment $300 or less
- the equipment cost less than $300 and doesn't form part of a set
- she requires the equipment to perform her work-related duties
- she only uses these items at work.
Travel expenses
- travel for work
- sleep away from your home overnight in the course of performing your employment duties.
- sleep in accommodation your employer provides
- you eat meals your employer provides
- your employer or a third party reimburses you for any costs you incur.
- you were away overnight
- you spent the money
- the travel directly relates to earning your employment income
- how you work out your claim.
- the travel allowance is not on your income statement or payment summary
- the travel allowance doesn't exceed the Commissioner's reasonable amount (the reasonable amount the amount we set each year for determining whether an exception from keeping written evidence applies for accommodation, meal and incidental expenses which are covered by a travel allowance)
- you spent the whole amount on deductible accommodation, meal and incidental expenses, if applicable.
- you received a travel allowance from your employer for the expenses
- your deduction is less than the Commissioner's reasonable amount.
Example: travel expenses before employment
- Brett travels from regional Victoria to Melbourne to audition for a role. He pays for his travel, accommodation and meals to attend the audition.
- Brett can't claim a deduction as the expenses are incurred to get a job.
Example: less than reasonable amount incurred
- Veronique is employed as a burlesque dancer to perform in the major capital cities in her employer's latest production. Veronique's employer pays for all the airfares and accommodation expenses.
- Veronique receives an allowance for meals and incidentals of $375 per week while she is on tour. The total allowance of $8,250 for the 22 weeks of the tour is shown on her income statement. Veronique spends less than the reasonable amount for meals and incidentals per day.
- Veronique must declare the allowance as income in her tax return because it is on her income statement.
- Veronique can claim a deduction for the amount she spent on meals and incidental expenses. She isn't required to get and keep receipts for the expenses because the amount she spent is less than the relevant reasonable amounts. However, if asked, she would still be required to show how she calculated her claim and that she had spent money on meals and incidentals.
- Veronique can’t claim a deduction for airfares or accommodation because her employer pays for them.
- For more information, see TD 2024/3 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2024–25 income year?
Union and professional association fees
- Adult industry expenses A–F
- Adult industry expenses G–O
- Adult industry expenses P–S
✅ Deduction Checklist for Adult Industry Workers
Use this checklist at tax time to make sure you don't miss any deductions.
💡 Practical Tips
📱 Use the myDeductions Tool
Download the ATO app and use myDeductions to record expenses throughout the year. Much easier than collecting receipts at tax time.
🧾 The $300 Rule
You can claim up to $300 in work-related expenses without receipts — but you must have actually spent the money and it must be related to earning your income.
🏠 Working From Home
If you work from home, you can claim 67 cents per hour (revised fixed rate) for running expenses like electricity, internet, and phone. Keep a record of hours worked.
🚗 Car Expenses
Choose between the cents per km method (85c/km, max 5,000 km) or logbook method (actual expenses × business use %). A 12-week logbook is valid for 5 years if your circumstances don't change.
⚠️ Common Mistakes & ATO Audit Flags
The ATO actively audits adult industry workers claims. Avoid these common errors and know what triggers extra scrutiny.
❌ Common Mistakes
Claiming expenses reimbursed by your employer
Fix: If your employer already paid you back, you can't also claim a deduction. Check your pay slips.
Not keeping receipts for claims over $300
Fix: You must have records for all deductions over $300. Bank/credit card statements alone aren't enough — keep the actual receipts.
Claiming private expenses as work-related
Fix: Only expenses directly related to earning your income are deductible. Personal items worn or used at work don't count.
🔍 ATO Audit Flags
Deductions significantly above average for your occupation
The ATO publishes benchmarks. If your claims are well above the norm, expect a 'please explain'.
Claiming the same expense twice (e.g., WFH and office supplies)
The ATO's data matching catches double-dips. Make sure each expense is claimed once.
Data sourced from the Australian Taxation Office — Adult Industry Workers Guide. Last updated: 2026-03-14.