Tax Deductions For Beauty Therapists

Hairdressers, beauty therapists, nail technicians and makeup artists work across salons, spas and mobile services, often under different pay and employment arrangements. Most are employees who receive a payment summary at tax time, though a growing number work as sole traders or contractors.

Whichever category you fall into, the ATO has a specific occupation guide for hairdressers and beauty professionals that sets out exactly what you can and can't claim. The rules are more precise than most people expect - a work apron is deductible but the black pants your employer insists on usually isn't. Knowing the difference means you claim everything you're entitled to, without running into trouble at tax time.

Deductible expenses for beauty therapists

1. Protective clothing

Aprons, smocks or tunics worn to protect you from hair dye, chemicals or other risks - plus the cost of laundering them. Everyday clothing (even if your employer requires it) doesn't count.

2. Tools and equipment

Scissors, clippers, hair dryers, straighteners, and similar tools you buy yourself. Items under $300 can be claimed immediately; anything over $300 is claimed over its useful life (decline in value).

3. Protective items

Gloves used when working with hair colour or chemicals, plus repair and cleaning costs - as long as your employer doesn't supply or reimburse them.

4. Laundry

$1 per load for work-only protective/uniform items, or 50c per load if mixed with personal laundry. Keep a simple record of how you calculated it.

5. Self-education

Courses that maintain or improve skills for your current role (e.g. an advanced cutting and colouring course) but not a course for a completely different skill, like a makeup course if you're a hairdresser.

6. Seminars, conferences and industry expos

Registration, travel and (if overnight) accommodation and meals - as long as it relates to your current job.

7. Phone, data and internet

The work-related portion of your bill, if you use your own phone to contact clients or your manager.

8. Union and professional association fees

9. Travel between work locations

Not home-to-work, but trips between salons, to a client's home, or to pick up supplies.

10. Industry magazines and professional publications

Subscriptions to publications focused specifically on your trade for example, hairdressing or beauty industry trend and technique publications. General fashion or lifestyle magazines don't qualify, even if you read them for "inspiration." If a publication covers both, you can only claim the work-related portion.

Non-deductible expenses for beauty therapists

• Grooming and makeup - even if your employer expects you to be well-presented, cosmetics and hair styling products for yourself are private expenses.

• Conventional clothing - black pants, plain shirts, closed shoes, even if your employer insists on them.

• Prescription glasses or contact lenses (protective/anti-glare glasses are different - those are claimable).

• Home-to-work travel, in almost all cases.

• Drivers licence costs.

The 3 golden rules

• You spent the money yourself and weren't reimbursed.

• It directly relates to earning your income.

• You have a record (usually a receipt) to prove it.

FAQ

Can I claim my haircare and skincare products?

No - even if your employer requires you to be well-groomed at work, personal grooming products are private expenses.

What if I'm self-employed or run my own salon chair rental?

The rules above apply to employees. Sole traders and contractors can generally claim a broader range of business expenses (like chair/booth rental, insurance, and marketing) - this needs separate advice, as the deduction rules differ.

Do I need receipts for everything?

If your total work-related claims exceed $300, yes - written evidence is required for all your claims, not just the amount over $300.

Every situation is different and what you can claim depends on your specific role and employer arrangements. Contact Gordon QC Du & Associates to get your deductions right.

Disclaimer: This post contains general information only and does not constitute specific tax or financial advice. Please consult a registered tax agent regarding your specific circumstances.

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