Are union fees and professional memberships tax deductible in Australia?

Yes. Union fees and professional membership fees are generally tax deductible in Australia if they are directly related to your work and your employment in your current occupation.

Union fees: If you pay fees to a union or industrial association as an employee, the fees are deductible. The union must be registered under the Fair Work (Registered Organisations) Act 2009 or equivalent state legislation. You can claim the deduction even if the union also provides some personal benefits (e.g. funeral cover) as long as the work-related component is identifiable.

Professional memberships and subscriptions: Annual fees paid to professional bodies, industry associations, or licensing bodies that are necessary to maintain your professional standing are deductible. Examples include membership of CPA Australia, the Law Society, Engineers Australia, AMA, or a real estate institute. Fees for professional journals or publications related to your work are also deductible.

What is NOT deductible: Membership fees for clubs, sporting associations, or social organisations — even if you make some business contacts through them — are generally not deductible. Fees for professional bodies that are not directly related to your current employment are also not deductible.

Record-keeping: Keep your receipts and membership statements. Many unions and professional bodies provide annual tax invoices. The amounts are typically reported on your income statement (formerly payment summary) if deducted from wages, or you can claim from your own receipts if paid directly.