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Forklift licence tax | 2023 Gotax

June 26, 2023

Can You Claim Your Forklift Licence on Your Tax Return? Let's Find Out!

Today, we're diving into a question that's been popping up quite a bit lately: "Can I claim the cost of getting a forklift licence and its yearly renewal on my tax return?"

The Australian Taxation Office (ATO) allows tax deductions for work-related expenses, including education, training, and seminars, as well as memberships, accreditations, fees, and commissions.   The key here is that it must be necessary for you to perform your job and not a private expense.

This means that if your forklift licence is necessary for your job, and if you spend the money on obtaining the licence or the renewal and you don’t get reimbursed then it will be tax deductible. 

And here is the rationale.  Not all licence fees are deductible. For instance, the cost of a general driver's licence renewal is considered a private expense and is not deductible, even if the licence is a condition of employment. The ATO's stance is that the right to drive on public roads is a private right, not a work-related one.

But don't lose hope just yet! If an employee requires a special or endorsed licence to perform their job, the cost of any endorsement over and above the general licence cost is tax deductible.  This suggests that if a forklift licence is required for your job and is an endorsement over a general licence, the cost of obtaining and renewing this licence should be tax deductible.

Note that it must be in connection with your job.  For instance, you may work for a business that has a warehouse, but you work in the office.  You may have used a forklift in the past for previous jobs and you wish to continue renewing your licence “just in case”.  As your current office job does not include the use of a forklift in your day to day work activities, then there would be no tax deduction for you.

So, in summary, whether you can claim the cost of getting a forklift licence and its yearly renewal depends on whether the licence is necessary for your job.  As always, it's a good idea to consult with Gotax to confirm what you can and can't claim.

We know you enjoyed another great tax blog by Gotax. Stay tuned for more tax tips and advice in our upcoming posts.  And remember, when it comes to taxes, knowledge is power! And Gotax has the knowledge.

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Forklift licence tax deduction

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