Tax deductions for debt collectors

Debt Collectors collect debt for clients, make arrangements to settle overdue accounts, formalise payment arrangements and follow up until accounts are fully paid.

Employment Profile

Average weekly pay:    $1.020
Employment size:          6,200  
Future growth:               Decline    
Skill level                        Certificate II or III

Typical tax deductions include:

• Motor vehicle travel to and from work if having shifting workplaces – working at more than one site each day before returning home. 
• Motor vehicle travel between offices, visiting clients or for training purposes. 
• Phone and internet – work %.   
• Client gifts bought for work purposes if entitled to receive commission income – includes a Christmas hamper, a bottle of whisky, wine, gift vouchers, flowers, etc. 
• Home office occupancy expenses if required by the employer to work from home – includes rent, mortgage interest, rates, insurance, etc.    
• Computers, cameras, video recorders, equipment, and tools. 
• Referral commission and expenses.
• Handbags, briefcases and satchels.  
• Overnight travel expenses visiting clients or attending training.  
• Home office running expenses. 
• Compulsory work uniform branded with the employers logo.  
• Union fees, licences, registrations and subscriptions.   
• Work-related training courses – includes first aid, OH&S, bookkeeping, sales techniques, customer service, merchandising, computer skills or management.  
• Self-education expenses – includes course fees, books, stationery, equipment and travel.

Non-deductible expenses:

• Advertising – if earning income from a fixed salary and not entitled to earn commission. 
• Gifts – if earning a fixed income and not entitled to earn commission. 
• Entertainment expenses such as buying lunch for a client or business associate. 
• Expenses incurred in attending social functions e.g. monthly networking breakfasts.

Tax Strategies we can assist you with.

Self education expenses
Computers, tools, equipment and other assets
Compulsory work uniform
Gifts to clients, suppliers and contractors
Union fees, licences, registrations and subscriptions
Phone and internet
Motor vehicle expenses: cents per km method
Home office running expenses
Handbags, briefcases and satchels
Overnight travel expenses