For the first time, the Australian Taxation Office has put together a comprehensive checklist of tax deductions for people who work in the adult industry.
In detailed terms, the checklist provides those in the industry with clear and detailed guidelines about what they can and can’t claim on tax, easing concerns, questions or confusion some may have.
According to Mark Chapman, Director of Tax Communications at H&R Block, although the ATO has released similar guides available for a “host of other trades and occupations”, this guide in particular is significant simply due to the “unusual nature of many of the claims”.
For that reason, that fact that the list is so overtly accessible is a big first.
“In the past, those in the adult industry might have been wary about the legitimacy of claiming some of the things they were spending as part of their job,” Chapman told Mamamia.
Assuming the individual wasn’t reimbursed by an employer and has proof they spent the money, Chapman says “you can generally make a claim, no matter how outlandish the item”.
“Lingerie is deductible to the extent you use it as part of your job and so are condoms, lubricants, gels, oils and tissues. The ATO also confirms that fetish equipment and vibrators are claimable, typically by depreciating the cost over several years,” he says.
In other words, he says, plenty of things “no other type of taxpayer would be able to get away with”.
Madison Missina wants to educate adult and teens alike and will change the way you think about sex workers. Post continues.
More than anything, Chapman stresses no employee, no matter the job, should be “embarrassed” about the kinds of items they might decide to claim on tax.
As long as they have the proof, they should feel more than comfortable putting it in their tax return.
Here’s exactly what you can claim on tax if you’re a sex worker:
- Advertising: Spending money advertising your business or services? Claim it.
- Clothing: According to the ATO, you can claim clothing “you use solely for earning income”. So, that could include lingerie or costumes. It doesn’t, they say, include clothes for everyday wear.
- Consumables: These may include condoms, lubricants, gels, oils and tissues.
- Cosmetics and hair care: This one follows a similar tune of how you can claim clothing. The ATO specifies in terms of claiming make-up, it must be considered “stage make up”. Some department store makeup brands can be considered stage makeup. However, beauty and hair products used for everyday use are ineligible.
- Dance lessons: These ones can be claimed if you’re using the classes to maintain your existing dance skills, or to learn new dance skills.
- Motor vehicles: If you’re travelling from client to client, you can claim car expenses. However, if you are simply travelling from home to work, you generally cannot claim motor vehicle expenses.
- Phones: The ATO have very specific outlines on the kind of phone you can claim on tax, and the specific costs you can claim. You can find them here.
- Tools and equipment: If you’re buying vibrators, fetish equipment and other tools for the purpose of work, you can claim them. You may not, however, be able to claim the full cost.
- Home office: Working from home? You can claim a deduction for the additional expenses you incur to run your office from home.
You’re not able to claim anything fitness related, or the cost of maintaining your general fitness and body shape.
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