Tax Deductions Available for Agricultural and Farm Workers

Working on a farm where you have to manage livestock and cattle is an unpredictable job, therefore your taxes are probably the last thing you want to think about at the end of a busy day’s work.

Managing your taxes properly is a key ingredient to financial success. It is important to make sure that you keep track of every single expense, so that way you get a bigger refund on your tax return at the end of the financial year.

To claim a deduction, it is important to understand that you are only able to claim deductions on money that was spent during the financial year to buy products or services that are directly related to earning an income.

You also need to make sure that you have spent that money yourself as you can’t claim something that was reimbursed by your employers. Furthermore, to claim a deduction you need to keep a record of each expense by keeping an invoice or a receipt.

Items That Can Be Claimed as A Deduction

For farmers and agriculture workers there are a large number of tax deductions available such as;
•    Costs that are related to the purchase and running costs of vehicles this includes; oil, fuel and the repairs and maintenance of a vehicle like a quad bike if it is used to help you cover large distances of land which are unable to be accessed via a car. 
•    Car expenses such as; tolls and parking costs. These are eligible if you use the car to travel between different jobs on the same day or to different locations for work or to transport heavy equipment and tools that are unable to be stored securely at your work site.
•    Expenses that are related to transport payments if the expenses are deductible because they are defined as work-related travel.
•    Costs that are incurred when looking after animals or buying animals such as; a horse or a dog. This includes vet bills, food for the animals or registration costs. This is only the case if you are working with livestock or cattle and need help herding them or if it is necessary for you to provide your own working animal to complete your employment duties.
•    Expenses related to buying, cleaning and repairing work clothing items such as; a shirt that has a company logo on it. This also includes unform related to your job such as; sheep shearer wearing clothing or protective clothing such as; gloves. You can also claim steel-capped boots, sunglasses or a sunhat.
•    Costs connected to the purchase and maintenance of firearms or renewing your gun license. The gun most be used as part of your job as an agriculture worker such as; the gun being used to control vermin on your farm.
•    First aid training courses to help you undertake first aid when an emergency situation happens on the farm.
•    Expenses that are associated with hiring, buying and insuring tools or equipment used for work related duties.
•    Costs associated with renewing your special drivers licence or getting a special condition on your licence so that you can perform work duties. This includes a heavy vehicle permit or a forklift licence. This is to renew them not to get them initially.
•    Phone and internet related expenses used to undertake your work duties.
•    Self-education expense related to progressing you in your employment. This could include; a Diploma in Agriculture.
•    Journals and magazines that are related to your employment working in agriculture.
•    Travel expenses for meal and accommodation if you need to travel for your job and stay overnight.
•    Union fees and fees for other professional associations.

Things You Are Unable to Claim

There are many things you can’t claim that you might accidentally assume that you can claim. These items include;
•    Regular clothing that is worn in the workplace such as; a plain white t-shirt.
•    Costs associated with obtaining and renewing your driver’s licence even if you need it to complete your work-related duties.
•    Childcare related expenses to look after your children when you are at work.
•    The cost of meals and snacks consumed during the working day.
•    Self-education that is unrelated to your position of employment. For example; you work on the farm during the daytime but at nigh time you are studying nursing so that you can eventually change your profession.
•    Any costs associated with travelling between your house and your workplace. You can’t claim costs for travelling from your house to your work. You can only claim costs associated with travelling from different jobs for example; you are traveling from one farm to another farm on the same day to complete two different jobs.

The List of Records That You Need to Keep

When claiming a deduction, you don’t always need a physical copy of the receipt as it is perfectly acceptable to use a digital copy such as; the photo of the receipt or an email of the receipt.

To claim a deduction, you will need to keep the following details for each claim; the name of the supplier, the nature of the goods or services, the amount of the expense, the date that the expense was paid for and the date of the document.

Furthermore, you don’t need to keep a receipt for an expense that is under $10, just as long as these expenses don’t come to a total of $200 or more.

Tax Deductions Available for Agricultural and Farm Workers