If you are a defence force member in Australia, you may qualify for numerous tax deductions. We know it can be overwhelming to know what you can and can’t claim as a defence force member, so we created this simple guide.
Knowing what expenses you are eligible to claim can ensure an accurate refund that gets you the maximum return.
Who Qualifies As a Defence Force Personnel in Australia
The ATO classifies the following as ADF members:
- Australian Army (Army) members
- Royal Australian Navy (Navy) members
- Royal Australian Air Force (Air Force) members
Special considerations: ADF reserves members or civilians performing ADF-related work.
Can Defence Force Personnel Claim Any Deductions?
Yes, as a defence force member in Australia, you may qualify to claim numerous deductions.
To be eligible to claim a deduction for work-related expenses, you must meet the ATO’s “3 golden rules”:
- Have paid for the goods or services yourself and not received reimbursement
- The expense or purchase must relate directly to earning your income
- Have proof or record of the payment (i.e. a receipt)
| Category | CAN Claim | CAN’T CLAIM |
| Work-Related Travel | Cost of using your personal vehicle to travel for work, such as between the base you work at to a meeting location | Cost of normal trips between your home and work |
| Uniform Expenses | Uniform purchases, PT gear, protective gear, and dry-cleaning costs for uniforms | Conventional clothing, ordinary shoes, t-shirts, non-uniform clothing |
| Communication | A portion of work-related internet or mobile phone usage | Personal cell phone or internet usage |
| Field Equipment | Field equipment you purchase yourself that is required to perform work duties | Equipment that is provided to you or that you get reimbursed for |
| Self-Education | Self-education, professional development, or training expenses directly related to performing your job | Self-education or training that applies to a different career |
| Home Office | A portion of the costs related to performing work duties from a home office | Occupancy expenses, such as mortgage interest, council rates, rent, or home insurance |
Tax Deductions for Defence Force Personnel: What You CAN Claim
Note: Remember, items supplied by your employer or that you receive reimbursement for cannot be deducted.
Work-Related Travel
If you use a personal vehicle to travel between bases or to official medical appointments, you can claim these expenses. If you claim work-related travel, be sure to use the cents per kilometre method or keep a valid logbook.
If you incur parking expenses or road tolls while travelling between bases, these expenses can be claimed as a deduction.
Uniform Expenses
As a member of Australia’s Defence Force Personnel, you can claim the following uniform expenses:
- Purchase of military uniforms
- PT gear
- Protective gear (i.e. safety glasses, helmets, breathing masks, safety boots, etc.)
- Environmental protection that is necessary for completing outdoor work duties (i.e. sunscreen, thermal underwear, wet weather gear, etc.)
- Service handbags
- Service dress shoes
- Safety glasses
- Dry cleaning of military uniforms
- Camouflage shirts or trousers
- Regulation jumpers and jackets
- Official mess uniform
Communication
You can claim a deduction for a portion of work-related mobile phone bills or internet costs.
Mess Fees
Senior non-commissioned officers and above can claim a deduction for compulsory mess fees.
Military Expenses and Equipment
If you purchase field equipment that is necessary to complete your job, it can be claimed as a deduction.
Examples may include:
- Compasses
- Watches with special features, such as a compass
- Headlamps
- Multi-tools
- Sleeping bags
- Packs
- Hydrating packs
- GPS
- Bivvy bag
Note: This does not pertain to personal hygiene items or foods. If an item is less than $300, it can be claimed as an immediate deduction. A decline in value is calculated for deductions for equipment costing over $300.
Home Office Expenses
If your job in the ADF requires you to perform any work duties from a home office, you can claim a portion of your expenses.
Self-Education or Professional Development Expenses
You can deduct self-education expenses if there is a relevant connection to your current job or if it is necessary for a promotion with the ADF.
Examples may include:
- Training courses
- Seminars
- Conferences
- Self-education costs
- Meetings
- Work-related courses
- Technical or professional publications that have content relating to ADF work
Tax Agent Fees
If you hire a registered tax agent to lodge your tax return, you can deduct tax agent fees.
Tax Deductions for Defence Force Personnel: What You CAN’T Claim
Clothing
Conventional clothing, such as ordinary shoes, t-shirts, undergarments, and non-uniform clothing cannot be claimed.
Vehicle and Travel Expenses
Travelling to and from work is not an eligible deduction. However, if you are required to transport bulky tools or equipment for work, it may qualify for a deduction.
Fitness Expenses
The cost to maintain your fitness, such as gym memberships, does not qualify as a deduction.
Driver’s Licence Fees
Acquiring a driver’s licence, the cost to renew your driver’s license, and passport fees cannot be claimed.
Relocation Expenses
Expenses incurred from relocating, such as transportation expense or removal, cannot be claimed.
Other expenses you CAN’T claim as an ADF member include:
- Equipment that is supplied to you by the ADF
- Donations to non-registered charities
- Penalties or fine
- Self-education or training expenses that do not directly relate to your work or involve a transition to a separate career
- Childcare
- Cost of grooming or personal hygiene products
- Meals, beverages, or snacks purchased while working
- Prescription glasses
- Medical treatments
- Costs related to connecting or installing phones, internet, or other telecommunications equipment
Print our handy guide to what you can and can’t claim as an Australian Defence Force Member here: Tax Return Checklist Australian Defense Force.
Looking for industry-specific tax deductions? See our various guides here: Tax Return Checklists – Industry-Specific Guides to Tax.
Things to Consider When Lodging Your Tax Return
Here are some considerations to keep in mind when lodging your tax return as an Australian Defence Force member:
- Remember to declare all of your income other than reservist income or tax-exempt deployment income
- Keep receipts and invoices for all work-related expenses.
- Keep any tax-related documents organised
- Make sure you maintain a logbook for work-related vehicle use if you plan on claiming deductions using the logbook method
- Avoid inflating your deductions
- Do not claim expenses your employer has already reimbursedCorrect mistakes immediately if you make an error and notify the ATO immediately
- Consider working with a tax professional to maximise deductions, avoid mistakes, and stay compliant
4 Tax Tips for Defence Force Personnel
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Keep Detailed, Accurate Records
When you lodge your return as a defence force member, be sure to include all salary, wages, bonuses, and commissions.
Maintaining detailed records of any work-related expenses and keeping any related invoices, receipts, or statements will help make tax season a breeze.
We recommend using helpful tax tools, such as ATO’s free myDeductions app, or taking pictures of your receipts throughout the year. These convenient methods help clearly track expenses so you have all the details you need when tax season arrives.
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Stay Informed About Tax Laws
Failing to keep up with current tax laws can prevent you from claiming all the deductions you are eligible for.
Stay up to date on eligible deductions and current tax laws and legislations that may affect what you can and can’t claim.
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Be Mindful of Reimbursements
If you cover a work-related expense on your own but receive reimbursements for it, you are no longer eligible to claim it. If an employer reimburses you for a purchase, make sure to make a note of it so you do not claim that expense at tax time.
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Enlist a Professional
Whether you are too busy or overwhelmed by what you can and can’t claim, a tax professional can take the burden of lodging a return off your shoulders.
Benefits of using a licensed tax professional include:
- Ensure your return is lodged on time
- Get the maximum refund you are entitled to
- Eliminate errors to make sure your return is 100% accurate
- Avoid penalties or fees from the ATO
- Less stress and worry!
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Save Time and Stress this Tax Season with our Skilled Tax Accountants
Trade the stress of tax time for the peace of mind that comes with knowing you are lodging a 100% accurate return that will get you the highest return you’re entitled to.
At TaxReturn.com.au, we handle all the paperwork, deductions, and deadlines so you can focus on your ADF career. We guarantee a 100% accurate, compliant return in just a few easy steps.
Get an instant tax refund and complete your tax return online by contacting our friendly team of tax professionals. Email our team at support@taxreturn.com.au, phone us on 0499 829 829 (0499 TAX TAX), or fill out our online contact form.
