Discover essential tax deductions for NDIS support workers, a crucial aspect to enhance your financial well-being while helping Australians with disabilities.

Working as NDIS disability support workers is more than just a job — it’s a vital role that helps improve the lives of Australians living with disabilities. But while you’re busy caring for others, who’s looking after your finances? When tax time rolls around, knowing exactly what you can claim as a deduction could mean the difference between a modest and generous refund.

Whether you’re employed, self-employed, or a sole trader under the NDIS scheme, understanding your entitlements can help you keep more of your hard-earned money. In this guide, we break down the essential tax write-offs NDIS workers often overlook — and how to make sure you’re claiming everything you’re legally entitled to.

Understanding Your Role as a Disability Support Worker

Before you start listing deductions, it’s crucial to understand how your role fits within the tax system. The Australian Taxation Office (ATO) categorises NDIS workers under several employment types — and each can influence what you’re eligible to claim.

✅ Who is an NDIS Worker?

NDIS (National Disability Insurance Scheme) workers include support workers, carers, allied health professionals, plan managers, and even those in admin roles. Whether you’re employed by a provider or operating as an independent contractor, you may be eligible for a range of support worker tax deductions — but the type and amount will depend on how you work.

🧾 Employee vs. Contractor: Know the Difference

If you’re an employee (on payroll with tax withheld), your deductible expenses may be more limited and tied directly to your employment conditions. But if you’re a sole trader or contractor, you can often claim a broader range of business-related expenses — as long as they’re directly tied to earning your income.

Understanding your classification is the first step in confidently claiming what’s yours.

The NDIS provider guidelines clearly define the scope of roles under the scheme, helping you understand where you fit — whether as a sole trader, contractor, or employee.

If you’re working as an independent support worker under the NDIS, you may have different tax obligations than employees

🛠️ Why Tax Deductions Matter

Every dollar you spend out-of-pocket for work-related purposes — from uniforms to fuel — can add up over a year. If those expenses aren’t claimed, you’re essentially leaving money on the table. By getting clear on your role and responsibilities, you’ll be in a stronger position to track your eligible costs and prepare for tax time more efficiently.

💬 Pro Tip:

Keep a work diary (even a simple app log) if you’re unsure which tasks or costs qualify as tax-deductible. This will be your best friend when it comes time to sort receipts or defend a claim during an ATO audit.

Common Tax Deductions for NDIS Support Workers You Can Claim

As an NDIS worker, your job likely involves a mix of physical work, admin, and travel — and each of these areas can come with tax-deductible expenses. Knowing what’s deductible (and what’s not) is key to maximising your return.

Here’s a breakdown of common deductions many NDIS workers can claim:

👕 1. Work-Related Clothing & Laundry

You can claim:

• Branded uniforms
• Protective clothing (like non-slip shoes or gloves)
• Laundry costs for these items (if you wash them yourself)

Note: You can’t claim for everyday clothing, even if you wear it to work.

📚 2. Training & Education

Claimable expenses include:

• Short courses or certifications related to your role (e.g., First Aid, Manual Handling)
• Seminars or online training related to disability care or support work

These costs must directly relate to your current job, not a new profession.

📞 3. Phone & Internet Usage

If you use your personal phone or internet for work (like contacting clients, using NDIS portals, or rostering apps), you can claim a portion of:

• Mobile phone bills
• Internet bills

Keep a usage diary for a month to justify your work-use percentage.

🧰 4. Supplies, Tools and Equipment

You might be able to claim:

• Assistive tools used in care, such as mobility aids, specialized equipment, or devices purchased specifically for work-related tasks.
• Work-related equipment like laptops, phones, or other tools necessary for providing NDIS support.
• Protective gear required for maintaining safety, such as gloves or face shields, especially when providing hands-on care.

🧾 5. Expenses for Support Workers Consumables

• Consumables for client care: Items like gloves, sanitizers, and other personal protective equipment (PPE) used to maintain hygiene and safety.
• Office supplies: Items such as pens, paper, printer ink, or diaries used for documenting and organizing client information.
• Cleaning supplies: Cleaning products (like disinfectants) used to sanitise work areas or equipment, especially in healthcare settings.

🚘 6. Travel Between Jobs (More on This in the Next Section)

If you visit multiple clients in a day, you may be eligible to claim those trips. We’ll dig into this in the next section — stay tuned!

💡 Tip:

Always keep receipts or digital records. The ATO loves documentation — and having it on hand can make or break your claim if audited.

Vehicle and Travel Expenses for Support Workers Explained

If you’re regularly on the road visiting clients, travel could be one of your biggest (and most overlooked) tax deductions. But when it comes to claiming vehicle and travel expenses, the ATO has very specific rules — and getting it right can seriously boost your tax return.

🚗 When Can You Claim Travel?

You can claim travel between:

• Multiple client homes or job sites during your shift
• Your workplace and training events
• Your office and supply stores (to purchase work-related items)

You cannot claim:

• Travel from home to your first job of the day, or from your last job back home (this is considered “private travel”)

✍️ Claiming Car Expenses for support workers: Two Main Methods

1. Cents Per Kilometre Method
   • Claim up to 5,000 km per year
   • No need for receipts, but you must be able to show how you calculated the distance
   • Rate for FY24–25: 85 cents per km
     (Confirm with the ATO for the most up-to-date rate)
2. Logbook Method
   • Keep a logbook for 12 weeks showing work vs personal use
   • Claim a percentage of total car expenses (fuel, rego, insurance, servicing, depreciation)
   • Ideal if you use your car heavily for work

Support Workers Other Travel Expenses

🚌 What About Public Transport or Rideshares?

If you use buses, trains, taxis, or rideshares like Uber to travel between clients or to training, these are deductible — just make sure to keep your receipts or digital records.

🧾 Travel Diaries & Record Keeping

Keep a digital or written log of:

• Dates
• Start/end locations
• Reason for the trip
• Kilometres travelled (if driving)

A spreadsheet, mileage app, or even a good old notebook can do the trick — as long as it’s consistent and clear.

💡 Bonus Tip:

Use apps like ATO myDeductions or Stride to automatically track trips. It makes life 10x easier at tax time.

Home Office and Admin Costs

Even if you’re out and about most of the day, many NDIS workers spend time doing admin, planning, or logging case notes from home. If that sounds like you, there are legitimate home office deductions you should be taking advantage of.

🏠 What Qualifies as a Home Office?

If you perform work-related tasks at home — such as:

• Completing care plans
• Communicating with clients or coordinators
• Writing up reports or case notes
• Organising appointments or schedules

— then congratulations, your home workspace likely qualifies for deductions.

💸 What Can You Claim?

Here’s what’s commonly deductible:

1. Electricity & Gas (Work Portion Only)
   • Use the fixed rate method (e.g. 67 cents/hour from 1 July 2022 onwards)
   • No need to calculate individual utility bills — just track your work hours
2. Office Equipment & Furniture
   • Items like desks, chairs, laptops, and monitors
   • You can either depreciate large items over time or claim small purchases outright (if under the threshold)
3. Internet & Phone
   • Claim a portion of your home internet bill, based on work usage
   • Similar to your mobile — only the work-related % is claimable
4. Stationery & Admin Supplies
   • Notebooks, pens, diaries, folders, printer ink, etc. used for client-related tasks

📅 Method Matters: Fixed Rate vs Actual Cost

• Fixed Rate Method: Easier, less paperwork — just track your hours.
• Actual Cost Method: More effort but might result in a bigger claim (if you have lots of expenses).

Tip: Use whichever method gives you the higher deduction, and keep good records either way.

🧠 Pro Tip:

You don’t need a separate home office room to make a claim — just a regular space where you consistently do work tasks.

Record Keeping and ATO Compliance Tips

Even if you’re eligible to claim a range of deductions, it means little without proper documentation. The ATO takes record keeping seriously — and as an NDIS worker, so should you.

Depending on your employment status and award, the Fair Work Ombudsman’s disability services guide can help clarify what obligations and reimbursements you may already be entitled to — which impacts what’s deductible

📁 What Records Do You Need?

To support your deductions, you should keep:

• Receipts or invoices for all work-related purchases
• Bank statements showing relevant transactions
• Logbooks or diaries for car travel and home office hours
• Phone/internet usage records to back up percentage claims
• Training certificates or course confirmations

Digital or physical copies are fine — just make sure they’re legible, complete, and stored securely.

🕒 How Long Should You Keep Records?

According to the Australian Taxation Office, you must keep tax-related documents for at least five years after you lodge your return. That includes receipts, logs, and correspondence.

📱 Use Tech to Your Advantage

Apps and tools can make record-keeping easy:

• Xero (if you’re a sole trader, company or need accounting tools)
• ATO myDeductions (free, official)
• Stride (great for mileage tracking)

Back up your records on cloud storage (Google Drive, Dropbox, etc.) to avoid losing them.

⚠️ What If You’re Audited?

If you claim something without proof — even if it was legit — the ATO can deny it. In some cases, you might even face penalties. So treat your documentation like gold.

✅ ATO’s Golden Rule: “You must have spent the money, and it must relate directly to earning your income.”

If you follow that guideline and keep clean records, you’re in a great position to claim confidently.

Book Your Consultation Today

👉 Pinnacle Accounting & Advisory
✅ Accounting Firm in Narre Warren
☎️ 0431413530
🌐 https://pinnacleaccountingadvisory.com.au
📅 Booking Link: https://calendly.com/pinnacleaccoutingadvisorymina/discovery-session

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Firstly, we’ll cover the importance of tax planning. Secondly, we will discuss how a robust business strategy can grow your business. Lastly, we will delve into the importance of having a trusted network of professionals to support you on your business journey. These elements are interconnected and can significantly influence your business’s success.

Utilizing a small business accountant effectively can significantly enhance your financial strategies.

Your small business accountant can guide you through the complexities of tax regulations.

Tax Planning with Your Small Business Accountant

Partnering with a small business accountant enhances your understanding and management of financial matters.

Small business accountants possess an in-depth understanding of how to utilize different trading structures. Your small business accountant will ask tailored questions to determine the best structure for your unique situation. For instance, whether a sole proprietorship, partnership, or corporation fits your long-term goals can significantly impact your tax obligations and overall financial health.

A small business accountant can help identify where reinvestment can lead to increased business efficiency.

Engaging a small business accountant allows for customized strategies that fit your business needs.

Consult your small business accountant today to explore how proactive planning can benefit your financial future.

Your accountant will also have comprehensive knowledge of the various tax rates applicable to different trading entities. This expertise allows them to explain the implications of these rates in the context of your business, ensuring you are fully informed about your obligations and opportunities.

With insights from your small business accountant, your business strategy can reach new heights.

This process, known as Tax Planning with your small business accountant, can save you a significant amount of money. By applying legal avenues to minimize your tax liability, you can reinvest these funds into the business, enhancing growth potential. For example, reallocating saved tax funds into strategic marketing campaigns can elevate your brand’s visibility.

Your small business accountant can provide effective recommendations tailored to your objectives.

With these savings, you can reinvest in your business through advertising, purchasing new manufacturing equipment, or expanding your product line. This reinvestment can lead to increased revenue, which will, in turn, boost your overall business profit. Consider the long-term benefits of each investment decision and how they contribute to your growth trajectory.

As Chartered Tax Advisors, we have cutting-edge tax and business knowledge. Our proficiency allows us to cut through the complexities of tax regulations and provide you with clear, actionable advice. We understand that every business is unique, and we tailor our strategies to fit your specific circumstances.

As a result, we are able to save you money on tax and help you grow your business. Our clients have seen firsthand the benefits of proactive tax planning. Why wait? Call us today for a confidential, obligation-free initial consultation. Take the first step towards financial empowerment.

Business Strategy with Your Small Business Accountant

A CPA brings a wealth of commercial understanding of the market. This extensive knowledge is not just theoretical; it translates into practical advice that can help steer your business in the right direction. A good accountant will analyze your current position and help you navigate potential challenges.

This understanding of the market can be broken down into the following seven key areas where the accountant can assist you:

1. Establishing your why
2. Market Analysis
3. S.W.O.T Analysis
4. Marketing Plan
5. Unique Selling Proposition
6. Best trading Structure
7. Connecting you with other professionals

Trusted Network

Having a small business accountant in your corner helps you navigate through market complexities.

Your small business accountant works with a diverse range of professionals. Thus, they can connect you with experts in various fields, enhancing your business’s support system. This network can provide invaluable insights and resources.

• Commercial Lawyers
• Family Lawyers
• Marketing professionals
• Conveyancers
• Financial advisors
• Auditors
• Finance Brokers
• Mortgage Brokers
• Bookkeepers

Above all, your accountant can connect you with the right professionals who match your unique needs and personality type. This personalized approach to networking can lead to stronger business relationships and more significant opportunities for growth.

Your small business accountant facilitates connections that are vital for your business’s growth.

Submit an Inquiry

Your email address will not be published. Required fields are marked with an asterisk (*) for your convenience. If you have any questions or need personalized advice, please do not hesitate to reach out.

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The tax rates for an entity in Australia will be different depending on the type of entity used.

We will go over the rates for the most often used structures.

Entities

We will review the following 7 entities:

1. Individual
2. Partnership
3. Company
4. Discretionary or family Trust
5. Unit Trust
6. Self Manager Superannuation Fund (SMSF)
7. Joint Venture

Individual tax rates

Individual rates tend to be different each year. For the 2021 financial year, the rates were:

These may also need to be paid:

• Medicare Levy (ML); and
• Medicare Levy Surcharge (MLS)

The Medicare Levy rate is 2%

See the table below for the MLS rate:

The thresholds above increase by $1,500. This is to say, for each dependent child after your first kid.

Click here to check the historical individual rates.

Click here to check the historical MLS rates.

Partnerships

A partnership needs to complete a tax return. With that said, the partnership does not itself pay tax. In addition, the partners pay tax if applicable. In other words, if the partner is an individual then they will pay tax. Whereas, if the partner is a trust then the trustee or the beneficiary of that trust is likely to pay the tax.

Company Tax Rates

The company is the most used business entity.

As a result, the rate for a trading company, which is a based rate entity, in the 2022 financial year is 25%. However, if the company is not trading and is not a base rate entity, then the rate is generally 30%.

Subsequently, To learn more about establishing a business click here.

Also, you can check the company rates now by going to the ATO website which speaks more about Changes to company rates.

Discretionary Trust/Family Trust

This entity is not taxed if the beneficiaries are entitled to all the income of the trust. Consequently, If this is not the case, the trustee will be taxed at the highest individual marginal rates.

In addition, the trustee will pay the MLS.

Unit Trust

The ATO does not assess this type of entity. Therefore, unit holders may have to pay tax depending on the type of entity they are. That is to say, the unit holder may be a discretionary trust with one individual beneficiary. As a result, the individual beneficiary will be taxed but not the discretionary trust.

Likewise, a partnership unit holder will not pay tax either but the partner’s will pay tax if they are a company, self managed superannuation fund or individual.

Joint Venture

The tax authorities don’t tax joint ventures. Further, members must avoid receiving income jointly for this to take place. For example, receiving income jointly is raising an invoice as the joint venture.

Speak with us now

Understanding various tax rates and how the array of entities work together to reduce tax is complex.

Contact us if you require assistance. We offer you a free initial discovery session to see how we can support your big vision.

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This article is designed to articulate a high-level general overview of some of the most important tax considerations for those in business and entrepreneurship. The article is not comprehensive in nature and professional advice should be sought to ensure correct application of issues mentioned where required.

Topics Covered

• Hobby or Business
• GST Threshold
• Motor Vehicle Cost limit
• GST on Motor Vehicles
• Payroll Tax
• Superannuation
• Award Rates
• Fringe Benefits Tax (FBT)
• Single Touch Payroll (STP)
• Division 7A

1.   Hobby or Business

A hobby can be considered a business where a profit-making intention can be established, where profit has been made or the acts of a person show there is intent to operate as a business.

The following factors may indicate that a profit-making intention and business exist:

• Registration of a business name
• Obtaining an Australia Business Number (ABN)
• You make a profit
• Repetition of business activities
• The size or scale of the activity is parallel with the activities of other businesses in your industry
• The activity is planned, organised and executed in business like fashion.

The indicators that an activity is planned, organised and executed in business like fashion may include:

• Keeping business records and account books;
• Having a separate business bank account;
• Operation from business premises; and
• In possession of licences and qualifications.

Worth noting is that an activity can begin its life as a hobby and morph into a business. An example is where an individual acquires an SLR Digital camera and proceeds to take photos at events and posts such photos on social media. Such photos receive praise from their viewers and the individual realises they have a natural flare and affinity for photography. They are encouraged to start a business. The individual decides to do just that and begins to plan. From this instant, it could be established the individual has left the territory of photography being a hobby to the pursuit of photography as a business.

Where the hobby has become a business and the activity is generating a loss, you may be able to offset the business loss against your salary and wage income for tax purposes subject to meeting the non-commercial business loss tests. The non-commercial business loss tests are complex and discussion thereof is outside the bounds of this article. You should seek the advice of a qualified tax agent in this regard before applying such tests. 

2.   GST Threshold

The Goods and Service Tax (GST) is a tax payable by the end consumer (other than businesses not registered for GST). Businesses with turnover in excess of $75,000 must register for GST.

Not for profit organisations which provide products or services must charge GST where their turnover is greater than $150,000.

Some businesses are GST exempt, such as those providing medical services and do not need to register for GST. This means they do not include GST in the fees they charge their patients.

However, registering for GST allows such businesses to claim GST credits on items and services they use to conduct their business.

3.   Motor Vehicle Cost Limit

As per the Australian Taxation Office’s definition, a motor vehicle means a motor-powered road vehicle and does not include a road vehicle where the following apply:

• The main function of the vehicle is not related to public road use; and
• The vehicle’s ability to travel on a public road is secondary to its main functions.

Examples of vehicles meeting the above definition include but are not limited to:

• Trucks, tractors and earth moving equipment.

Vehicles purchased are subject to a Motor Vehicle cost limit of $57,581 for the 2019/2020 financial year. This means vehicles purchased above this limit will have deductions, which may cover numerous years, limited to the above-mentioned figure.

This figure is regularly indexed and should be checked each year by referring to ATO guidelines.

4.   GST on Motor Vehicle Cost Limit

If your business is registered for GST, you may be eligible to claim GST credits equal to one eleventh of the Motor Vehicle cost limit.

This usually translates to $5,234.

Other business assets are not subject to this limit and therefore the full GST credits applicable can be claimed.

5.   Payroll Tax

Payroll tax is payable by employers where their payroll exceeds either a monthly or annual threshold provided by each Australian state and territory.

The website below mentions the payroll tax thresholds and percentage rates applicable for each state and territory.

https://www.payrolltax.gov.au/harmonisation/payroll-tax-rates-and-thresholds

6.   Superannuation

Superannuation is required to be paid for each employee where that employee earns $450 or more per calendar month.

The minimum superannuation payable is an additional 10.00% of the wage or salary paid. This should be stipulated in the contract with the employee. Generally, employers combine the salary, wages and superannuation as a total remuneration package offered to their employees.

See link below for table of rates and years to which they apply.

https://www.ato.gov.au/rates/key–superannuation-rates-and-thresholds/?page=22

7.   Award Rates

Certain employee pay is subject to minimum pay rates prescribed by Fair Work Australia. Paying employees in industries such as the hospitality industry below these rates is illegal. To determine the applicable rates for your employees based on the industry in which you operate, navigate to the below mentioned link and search for your industry.

https://www.fairwork.gov.au/

8.   Fringe Benefits Tax (FBT)

Fringe benefits tax is payable at a rate of 47% by employers on benefits provided to employees or the employees associates. This is the case even if the benefit is being provided by an external provider under an agreement with the employer.

These benefits could be the ability to use a company car for the employee’s private purposes or paying for an employee’s holiday. FBT is a complex area of tax and professional advice should be though if you are considering providing benefits to your employees.

9.   Single Touch Payroll (STP)

STP is a new way to report employees’ tax and superannuation information to the ATO. This information is now reported every time a business runs its payroll. This is a standalone process to preparing the Monthly Pay As You Go Withholding statements and the monthly Business Activity Statements where applicable.

As of 30 September 2019, all businesses which employ staff must be registered for STP and report the information to the ATO.

You can navigate to the ATO website using the link below to check out the no cost or low cost platforms available to satisfy the STP reporting obligations.

https://softwaredevelopers.ato.gov.au/no-cost-and-low-cost-solutions-single-touch-payroll

When considering which provider to choose, it is important to determine if such programs integrate with other business systems to ensure a streamlined no fuss solution is implemented.

10.   Division 7A

Where using a company structure in your business then you need to be cognisant of Division 7A of the 1997 Income Tax Assessment Act.

A company is a separate legal entity and stands alone from its directors and shareholders. As such, any income generated by the entity must be provided to shareholders and directors via declaration of a dividend.

Where profits in the form of drawings are taken out of the company without a dividend being declared, Division 7A is triggered and may deem this to be a dividend to which the benefit of possible attached franking credits (also known as imputation credits) is disregarded. This is a disadvantageous spot to be in. Division 7A is another complex area of taxation for which further advice should be thought. 

Conclusion

As can be seen, the above information provides a broad overview of various tax considerations when operating a business. The ATO website is a good resource to use to find out more. Another great website to visit to learn more about money and business is the Australian Securities and Investment Commission’s (ASIC) Money Smart website.

Questions? Fill out the form below and we’ll reach out to you.

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