Work related deductions and income for Nurses and Midwives

As nurses and midwives, doing taxes can be a real chore. You’ve likely spent a good portion of your own money for expenses on the job during the past year, and have probably heard that some of those could be considered work-related deductions.

It’s quite common to have questions about exactly what can be claimed as tax deductions for nurses and midwives versus what must be reported as normal income.

What counts as a work related deduction?

First and foremost, when looking at tax deductions for healthcare workers, you have to know what can be claimed. In order to claim an expense for a deduction, you must have a record of it. Good record-keeping is crucial for taxes, just in case you’re ever asked to prove a claim. Our recommendation would be to use the ATO App to keep track of your records.

Furthermore, the expense must be work-related, meaning that it must have been connected to your duties as a nurse or midwife. For example, perhaps you have purchased a new uniform, shoes or another type of equipment you will use on the job.

And last but not least, the product or service purchased must have been paid for out of your own pocket and not reimbursed by your employer. If you received reimbursement, it doesn’t fall under the category of tax deductions for nurses.

Some Common Deductions

There are quite a few common tax deductions for healthcare workers that many nurses and midwives claim each year. It just depends on what you use for work.

• Mobile Phone:

  Yes, you can even claim part of your mobile phone bill if you use your personal phone for work. This is usually thought of as a percentage of the bill for the amount of time you use it for work.

• Working from Home:

  In this post-pandemic era, many nurses and midwives are taking shifts remotely, and this means that certain internet and utility bills can be considered tax deductions for nurses.

• Labour Unions:

  If you belong to a nursing union or other association for which you have to pay dues, these could also be deductible. Reach out to your union for more information on this.

Allowances

Many healthcare professionals receive allowances for on-the-job expenses such as transportation, compensation for working in an unpleasant environment, or even for having a special skill.

According to the Australian Taxation Office, some of these may be considered tax deductions for nurses, but whether they can be claimed as such varies by situation. Primarily, if you received an allowance, it also needs to help you pay for deductible work expenses in order to be claimed.

Final Thoughts

Keeping as much of the money you earn as a nurse or midwife doesn’t have to be time-consuming, and can certainly pay off in the long run as you watch your savings grow. The most important point is being able to keep all your deductions for the tax year in one place so that you’re able to present them to your accountant, or just streamline your tax return process. Using the ATO app to keep track of your work related expenses throughout the year is one of the best ways of doing so.

For a more comprehensive list of tax-deductible items or FAQs, please visit the ATO Website.

At Healthcare Australia, we’ve been assisting nurses and midwives with placement, career growth, and maintenance for decades, expertly guiding professionals through the tricky web of tax deductions for nurses. From finding new employment opportunities to keeping more money in your pocket, our professional advice can be an invaluable asset to your career.