Tax Deductions for Hospitality Industry Workers
Working in hospitality? Even on lower incomes, deductions for uniforms, non-slip shoes, and food safety courses can make a real difference to your refund.
This guide covers 27 deduction categories with 210+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
💰 Real-World Example
Amy: Amy is a sous chef at a busy restaurant. She claimed non-slip kitchen shoes ($120), knife set maintenance ($80), food safety renewal course ($150), and uniform laundry ($150/year).
Result: ~$130 back on a $55k salary
Illustrative example only. Your situation may differ.
Deduction Categories
27
Specific Items
210
Income Types
0
Work-Related Deductions (27)
Amounts you do and don't include
- salary and wages, including cash or 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 hospitality 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, personal protective equipment or utensils
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, handling higher duties such as supervising
- as an amount for having special duties, skills or qualifications – for example, first aid qualifications.
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
- from the restaurant to suppliers to discuss buying of ingredients
- to attend training at locations other than the restaurant.
- The following table sets out allowances you may receive and when you can claim a deduction.
- Example of allowance type
- Deduction (Yes or No)
- Compensation for an aspect of your work that is unpleasant, special or dangerous or for industry peculiarities
- Split shift allowance
- These allowances don't help you pay for deductible work-related expenses
- An amount for certain expenses
- Tool and equipment allowance
- If you incur deductible expenses
- An amount for special skills
- A first aid certificate
- Mario works at a café. On certain nights, the café opens for dinner. When Mario works the breakfast shift and the dinner shift, his employer pays him a split shift allowance.
- At the end of the income year, the allowance is shown on his income statement. Mario must include the allowance as income in his return.
- Mario can't claim a deduction as he doesn't incur any expenses. The allowance compensates him for the inconvenience of having to do a split shift. It is not to help Mario pay for work-related expenses.
- Bronwyn is an employee chef. During the income year, Bronwyn uses her own car to travel:
- Bronwyn's employer pays her 95c per kilometre when she uses her car for work purposes.
- At the end of the income year, her income statement shows the allowance of $304 for using her car for work (320 kms × $0.95).
- Bronwyn must include the car allowance as income in her tax return.
- Bronwyn can claim a deduction for the cost of using her car for work purposes. She can't claim the amount of the allowance she receives. Bronwyn must calculate the amount of the deduction using the records she keeps whenever she uses her own car for work purposes.
- In the past year Bronwyn has kept a record of the work trips she did using her own car, but she doesn't keep a logbook. Her records show she travels 320 kms for work purposes.
- As Bronwyn has not kept a logbook, she uses the cents per kilometre method to claim a deduction. The cents per kilometre method rate for the 2024–25 income year is 88c per kilometre.
- Bronwyn claims a deduction of $272. Bronwyn calculates her deduction as 320 kms × $0.88 = $281.60.
Reimbursements
- you don't include the reimbursement as income in your tax return
- can't claim a deduction for the expenses.
- Deductions for work expenses
- Record keeping for work expenses
Award transport payments (fares allowance)
- Allowances you receive from your employer for transport or car expenses that are paid under an award must be included in your tax return. These allowances are assessable income.
- You can claim a deduction for expenses covered by award transport payments , if the expenses are for work-related travel, and you have actually spent the money.
- You don’t need written evidence if your claim is less than the amount in the award as at 29 October 1986. If you're unsure of this amount, your union or employer can tell you.
- If you don't need written evidence, you will need to be able to show how you work out your claim if we ask for this information.
Car expenses
- live a long way from your usual or regular workplace
- have to work outside normal business hours – for example, weekend or early morning shifts
- have to carry an item that is illegal to carry on public transport - for example, knives.
- the tools or equipment are essential to perform your employment duties
- the tools or equipment are bulky, meaning that because of the size and weight, they are awkward to transport
- they can only be transported conveniently using a motor vehicle
- there is no secure storage for these items at the workplace.
- directly between separate jobs on the same day (provided neither of the workplaces is your home) – for example, travelling from your first job as a barista directly to your second job as a retail assistant
- to and from an alternative workplace for the same employer on the same day – for example, travelling from the preparation depot to a function centre to cater an event
- from home directly to an alternative workplace – for example, travelling from home to a supplier to pick up ingredients.
- 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: private travel to regular place of work
- Simone works as a waitress at a local restaurant. She often works late into the night, closing the restaurant after the last customers have left. The only available bus doesn't operate past 7:00 pm so Simone has to drive to and from work.
- The cost of Simone's trip to and from her regular place of work is not deductible as it is private in nature. She incurs the expense to put herself in the position to earn her employment income.
Example: direct travel between 2 separate jobs
- Owen works primarily as a waiter but has another part-time job as a retail assistant. On Wednesdays and Saturdays, he drives directly from his job as a waiter to his job as a retail assistant.
- As the travel is between 2 workplaces for different jobs and neither of the workplaces is his home, Owen can claim a deduction for that travel.
Child care
- You can't claim a deduction for the cost of 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 that you wear to protect you from specific risks of injury or illness at work. For example, non-slip shoes, fire-resistant clothing, or aprons that protect conventional clothing. Conventional clothes you wear at work are not regarded as protective clothing if they lack protective qualities designed for the risks of your work. This includes jeans, shirts, shorts, trousers, socks, closed shoes.
- occupation-specific – clothing that distinctly identifies you as a person with a particular profession, trade or occupation. For example, a chef's chequered pants or white jacket. Items traditionally worn in a profession are not occupation-specific where the clothing is worn by multiple professions.
- 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: conventional clothes worn with a uniform
- Pablo is a barista in a coffee chain café. His employer has a uniform policy which requires him to wear a shirt with the café's logo embroidered on it, black pants and closed black shoes. The uniform policy doesn't stipulate any other qualities that the pants and shoes must have. Pablo buys his own uniforms.
- Pablo can claim a deduction for the cost of the shirts as they are a compulsory uniform, but he can't claim the cost of the pants or shoes. Even though his employer requires him to wear a specific colour, they are not distinctive enough to make them part of his uniform and are still conventional clothes.
Example: occupation-specific clothing
- Joe is a chef with 2 jobs. When working at a restaurant he wears the traditional chef's uniform of chequered pants, white jacket and chef's toque that he buys and is not reimbursed for. He also works on a food truck, but just wears jeans and a t-shirt at that job.
- Joe can claim a deduction for the cost he incurs to buy his traditional chef's uniform, but not for the jeans and t-shirts he wears while he is working on the food truck. The chef's clothing is occupation specific and identifies him as being a chef, but the jeans and t-shirt are conventional clothes.
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.
Fines and penalties
- You can't claim a deduction for any fines or penalties you get when you travel to work or during work. Fines may include parking and speeding fines or penalties. For example, a fine you receive for parking illegally outside your workplace.
First aid courses
- a designated first aid person
- need to complete a first aid training course to assist in emergency work situations.
- Hospitality industry expenses G–O
- Hospitality industry expenses P–S
- Hospitality 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.
- You can claim a deduction for the cost of protective glasses if you wear them to reduce the real and likely risk of illness or injury while working. Protective glasses include anti-glare or photochromatic glasses, sunglasses, safety glasses or goggles.
- You can only claim a deduction for the work-related use of the item.
Grooming expenses
- you receive an allowance for grooming
- your employer expects you to be well groomed.
- You can't claim a deduction for hairdressing, cosmetics, hair and skin care products, even if:
- All grooming products are private expenses.
Hiring equipment
- You can claim a deduction for the cost of hiring equipment that you use for carrying out your employment duties. However, if you also use the equipment you hire for private purposes, you can only claim a deduction for your work-related use.
Example: no deduction for hiring equipment
- Narendra is an employee caterer. His employer asks him to work at a food festival. On the day of the festival, Narendra finds that the bain-marie his employer has given him to use is not working.
- Narendra's employer asked Narendra to stop by the hire place they use on his way to the festival to hire a bain-marie for the day. Narendra pays $80 to hire the bain-marie and his employer reimburses him for the cost.
- Narendra can't claim a deduction for hiring the bain-marie because even though he uses it for work, he was reimbursed for the hire cost.
- If Narendra's employer doesn't reimburse him, he can claim a deduction for the cost of hiring the bain-marie.
Laundry and maintenance
- protective – for example, an apron to protect your clothes
- 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 clothing you wear at work from one of categories above
- 50c per load if you mix personal items of clothing with work clothing from one of the categories above.
Example: work clothing laundered and maintained by employer
- Cassidy is a waitress at a high-end restaurant in the city. Her employer requires her to wear a white business shirt and either a black dress skirt or pants. Her employer provides Cassidy with these items and the outfit remains at the restaurant. Her employer launders these items to keep them in good condition.
- Cassidy can't claim a deduction for laundry costs as she doesn't incur any expense for laundering the outfit.
- Even if Cassidy was responsible for washing and maintaining the outfit herself, she couldn't claim a deduction for laundry expenses. This is because these items are conventional everyday clothing worn by people regardless of their occupation.
Example: uniform laundry expenses
- Sali works in a fast-food restaurant where he is required to wear a compulsory uniform. He washes and dries the uniform in a separate load of washing twice a week. Sali works 46 weeks during the year.
- His claim of $92 for laundry expenses is worked out as follows:
- Number of claimable laundry loads per week × number of weeks worked = total number of claimable laundry loads
- 2 × 46 = 92
- Total number of claimable laundry loads × reasonable cost per load = total claim amount
- 92 × $1 = $92
- As his total claim for laundry expenses is under $150 ($92), Sali doesn't need to provide written evidence of his laundry expenses. Although, Sali doesn't need evidence to prove his claim for laundry, if asked, he will still need to explain how he calculates the claim.
Licences, permits and cards
- You can’t claim the cost of getting your initial licence, regulatory permit, cards or certificates to get a job. For example, Responsible Service of Alcohol (RSA) certificate.
- You can claim a deduction for the additional costs you incur to renew your licence, regulatory permit, card or certificate to continue to perform your work duties. For example, if you need to have a Responsible Service of Alcohol certificate, you can’t claim the initial cost of getting it. However, you can claim the cost of renewing it during the period you are working.
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.
Overtime meal expenses
- you receive an overtime meal allowance under an industrial law, award or enterprise 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 the reasonable amount, you don't have to get and keep receipts
- more than the reasonable amount, you must get and keep receipts for all your expenses.
Example: overtime meal expenses
- Penny is a drinks waitress for a catering company that does corporate events. Penny is part-time and works Thursday to Sunday each week between 10:00 am and 9:00 pm.
- Penny is asked to work for an additional 3 hours when a catering event runs overtime to help clean up and pack away the catering equipment. She is given a meal break and paid a meal allowance of $20 under her enterprise bargaining agreement. Penny's employer shows the allowance on her income statement.
- Penny takes her break while the event wraps up and buys and eats a meal costing her $21 which is less than the reasonable amount.
- Penny must include the allowance as income in her tax return.
- Penny can claim a deduction of $21 for the cost of the meal she eats during her overtime meal break. As the amount she is claiming is less than the reasonable amount, she does not need to keep a receipt for her overtime meal.
Example: food consumed after overtime
- Hospitality industry expenses A–F
- Hospitality industry expenses P–S
- Hospitality industry expenses T–W
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
- Sebastian is a caterer and he uses his personal mobile phone for work purposes (mostly outgoing phone calls). He is on a set mobile plan of $39 a month.
- He receives an itemised account from his phone provider each month which includes details of his individual phone calls.
- At least once a year, Sebastian prints out his monthly bill and highlights his work-related phone calls. He also makes notes on the itemised bill about who he has phoned for work – for example, his manager and clients.
- Out of the 250 phone calls he has made in a 4-week period, Sebastian works out that 100 (40%) of the phone calls are for work. He applies that percentage to his monthly plan amount ($39 a month).
- He works out his phone calls for work purposes as follows:
- Total work phone calls ÷ total number of phone calls = work use percentage for phone calls
- 100 ÷ 250 = 0.40 (that is 40%)
- Sebastian can claim 40% of the total bill of $39 for each month for work purposes, that is:
- $39 × 0.40 = $15.60
- Sebastian worked for 46 weeks of the year (10.6 months), so he calculates his work-related mobile phone expense deduction as follows:
- 10.6 months × $15.60 = $165.36
Example: work and private use
- Sylvie uses her computer and personal internet account at home to access her work emails and develop the menu for the restaurant where she is the pastry chef. Sylvie also uses her computer and the internet for private purposes.
- Sylvie keeps a diary for a 4-week period, recording the times she used the internet for work and private purposes. Her internet use diary showed 20% of her internet time was for work-related activities and 80% was for private use.
- As her internet service provider charge for the year was $1,200 she can claim:
- $1,200 × 0.20 = $240 as work-related internet use.
- If anyone else was accessing the internet connection, Sylvie will need to reduce her claim to account for their use.
Protective items
- supplies the protective items
- pays for the protective items
- reimburses you for the costs you incur to buy protective items.
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
- 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: self-education not deductible
- Terri is employed as a chef at a restaurant. She wants to develop skills in other areas of the restaurant business as she'd like to open a restaurant of her own one day. Terri enrols in a barista training course and a bartending course.
- Terri's duties as a chef include preparing, cooking and presenting food, overseeing food quality, ordering ingredients, planning menus, co-ordinating other kitchen staff and wait staff and maintaining the cleanliness and tidiness of the kitchen.
- Even though there are some minor connections between her work in hospitality and her study, her current duties as a chef don't require her to make coffee or serve drinks. The barista and bartending courses do not provide Terrie with the skills and knowledge she requires to carry out her current employment duties as a chef. .
- Terri can't claim a deduction for the costs of these courses.
Seminars, conferences and training courses
- You can claim a deduction for the cost of seminars, conferences and training courses that relate to your work as a hospitality industry employee.
- 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 attending a conference while on 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 you can only claim the work-related portion. For example, you add a holiday of one week to a training course that runs for one week.
Example: work-related conference and exhibition
- Hospitality industry expenses A–F
- Hospitality industry expenses G–O
- Hospitality 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: decline in value of tools and equipment
- Lina works as a short order cook at a local café. Lina is required to provide her own chef knives as the café owner has not completely fitted out the kitchen.
- Lina doesn't own a set of chef knives when she takes the job as all her previous employers have provided this equipment.
- The set of 6 knives with chef roll to carry them in that Lina buys cost her $550.
- As Lina uses the knives to perform her work duties and they are part of a set costing more than $300, Lina can claim a deduction for the decline in value of the knives over their effective life.
Example: work-related use of equipment
- her job requires her to transport the laptop to work, and
- the laptop bag she has purchased is suitable for that purpose.
- Denise is a head chef at a restaurant. As head chef, Denise is required to create new dishes and menus regularly outside of restaurant hours at home. Denise uses her laptop to research recipes, test recipes and develop menus at home. She has to take her laptop to work as the recipes and menus are stored on her laptop.
- Denise buys a leather laptop bag for $200, that she only uses to carry her laptop to work. She carries her cash and cards, personal phone and other personal items in a smaller clutch bag.
- Denise can claim a deduction for the cost of the bag because:
- As the total cost for the laptop bag is less than $300, she can claim a deduction for the full cost of the laptop bag ($200) in the income year that she bought it.
Travel expenses
- travel for work
- sleep away from your home overnight in the course of performing your employment duties.
- you slept 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 is 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 allowance on deductible accommodation, meal and incidental expenses, if applicable.
- you receive a travel allowance from your employer for the expenses
- your deduction is less than the Commissioner’s reasonable amount.
Union and professional association fees
- Hospitality industry expenses A–F
- Hospitality industry expenses G–O
- Hospitality industry expenses P–S
- Income and allowances
- Record keeping for work expenses
✅ Deduction Checklist for Hospitality 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 hospitality industry workers claims. Avoid these common errors and know what triggers extra scrutiny.
❌ Common Mistakes
Not declaring cash tips as income
Fix: All income including cash tips must be declared. The ATO data-matches and failing to declare is a red flag.
Claiming non-compulsory clothing
Fix: Only uniforms with your employer's logo or occupation-specific clothing (chef's whites) qualify — not plain black pants.
Forgetting food safety course costs
Fix: RSA and food handling certificates are deductible if you paid for them yourself.
🔍 ATO Audit Flags
Income not matching employer records
ATO matches your declared income against Single Touch Payroll data. Undeclared income = audit.
Deductions disproportionate to income
Hospitality workers on lower wages claiming large deductions attract scrutiny.
Data sourced from the Australian Taxation Office — Hospitality Industry Workers Guide. Last updated: 2026-03-14.