Professional Membership & Union Fee Tax Deductions for Nepali Workers in Australia 2026

The answer depends on the type of payment. It is important to distinguish between an ongoing membership subscription, a joining fee, a special levy and a membership that has little or no connection with your income-earning activities.

Are union fees tax deductible in Australia?

If you pay union fees for the industry in which you work, you may generally be able to claim the eligible amount as a work-related deduction.

Examples could include workers who belong to a relevant union while working in:

• healthcare and aged care,
• education,
• construction,
• manufacturing,
• warehousing,
• transport,
• hospitality,
• retail, or
• other industries represented by a relevant union.

What about professional association membership fees?

Professional association subscriptions can also be deductible where the required connection exists between the association and the work from which you earn assessable income.

This can be particularly relevant for Nepali professionals working in Australia in areas such as:

• accounting and finance,
• engineering,
• information technology,
• healthcare,
• teaching and education,
• management,
• technical professions, and
• other regulated or specialised occupations.

Three payments that should not be confused

Can you claim a fee paid to join an association or union?

Do not automatically treat a one-off joining fee in the same way as your recurring annual membership subscription.

ATO guidance distinguishes joining fees from ongoing subscriptions. A joining fee can be capital in nature and may therefore not be deductible as an ordinary work-related expense.

What is the $42 professional association subscription rule?

There is another rule that can apply to certain subscriptions.

ATO guidance states that you can claim up to $42 per income year for the cost of each subscription you incur for membership of a trade, business or professional association that does not directly relate to earning your employment income.

Are special union levies tax deductible?

Special levies require closer examination because the purpose of the payment matters.

ATO guidance indicates that a special levy or contribution to a trade, business or professional association may be deductible where its purpose is sufficiently connected with the activities through which you earn assessable income.

However, not every levy qualifies.

Strike fund levies

The ATO states that a levy paid to a strike fund may be deductible where the fund's sole use is to maintain or improve contributors' pay.

By contrast, a levy to a strike fund that provides financial support to members experiencing financial hardship during industrial action is not treated in the same way.

What about bargaining agent fees?

ATO guidance also allows a deduction for certain payments of a bargaining agent's fee to a union for negotiations on a new enterprise agreement or award with your existing employer.

Keep documentation showing what the payment was for rather than recording it simply as a generic “membership fee”.

What if your employer pays or reimburses the membership fee?

Generally, you should not claim an expense that you did not ultimately bear yourself.

If an employer reimburses only part of an eligible expense, the unreimbursed portion may require separate consideration.

What if union fees are deducted directly from your salary?

Some employers deduct union fees from an employee's pay and forward the amount to the union.

If this applies to you, your payslips, income records or union statements may help establish how much you personally paid.

Make sure you do not accidentally claim the same payment twice.

Can you claim more than one professional membership?

Having multiple memberships does not automatically prevent a deduction.

Each subscription should be considered on its own facts, including:

• what organisation you joined,
• why you maintain the membership,
• how it relates to your current work,
• what the payment covers,
• whether your employer reimbursed any amount, and
• whether another specific deduction provision applies.

Why your current occupation matters

The relationship between the association and your current income-earning activities can be important.

For example, a professional association that helps a person remain informed about developments in the profession in which they currently work may have a much stronger connection with their employment than a membership unrelated to their present income-earning activities.

Professional membership vs licence or registration fee

A professional association membership should not automatically be confused with a compulsory occupational licence, registration or accreditation.

Depending on the occupation, workers may separately pay for:

• professional association membership,
• union membership,
• occupational registration,
• licence renewal,
• Working With Children checks,
• police checks,
• industry cards, or
• professional development.

These costs can have different tax rules. Record them separately rather than combining everything under “professional fees”.

What if you are a student and pay professional membership fees?

Being a student does not automatically make a professional membership deductible.

The relevant question is generally whether the expense has the required connection with your current income-earning activities or qualifies under another applicable provision.

What about ABN holders and sole traders?

Professional memberships are not relevant only to employees. A sole trader or other business operator may also incur subscriptions to trade, business or professional associations.

The tax treatment depends on the nature of the expense and its connection with the business or income-producing activity.

If you operate under an ABN, keep your membership invoices with your other business records rather than assuming every subscription is automatically deductible.

Union and professional membership deduction guide

Examples for Nepali workers in Australia

Nurses and healthcare workers

A nurse may pay annual fees to a relevant union or professional association in addition to separate registration costs. These expenses should be identified individually rather than combined into one figure.

Accountants and finance professionals

An accountant may maintain membership of a professional accounting association to stay informed about developments relevant to their current professional work. A relevant annual subscription may potentially qualify where the applicable deduction requirements are satisfied.

Engineers and IT professionals

Professional or industry association memberships may be relevant where they have a sufficient connection with the person's current income-producing activities.

Teachers and education workers

Union fees may be relevant for teachers and other education employees. Professional memberships and registration-related expenses should be considered separately.

Construction, warehouse and trade workers

Workers may pay union fees as well as expenses for licences, tools, protective equipment or training. Each category should be recorded separately.

What records should you keep?

Good records make it easier to determine the correct deduction and substantiate your claim.

• annual membership invoices,
• union statements,
• receipts,
• bank or card payment records,
• payslips showing union deductions,
• documents identifying what a special levy was for,
• employer reimbursement records,
• membership renewal notices, and
• documents showing the association's relevance to your current work.

Common mistakes to avoid

1. Claiming every membership you have. A private or unrelated membership is not automatically a work-related deduction.
2. Treating a joining fee as an annual subscription. They can have different tax treatment.
3. Assuming all professional memberships are capped at $42. The separate $42 provision should not be confused with subscriptions that qualify under the ordinary deduction rules because of their connection with earning assessable income.
4. Claiming fees your employer paid. You generally need to have incurred the expense yourself.
5. Claiming a fully reimbursed cost. If your employer reimbursed the expense, you should not simply claim the original amount as though you remained out of pocket.
6. Claiming every special levy. The purpose of a levy matters.
7. Combining registration, union and professional fees. Keep the expenses separately identifiable.
8. Having no records. Retain evidence showing the amount paid and the nature of the expense.

Before claiming membership or union fees

• Confirm exactly what organisation you paid.
• Check whether the payment was an annual subscription, joining fee or special levy.
• Determine how the organisation relates to your current work.
• Check whether your employer paid or reimbursed any amount.
• Separate union fees from licences and professional registration.
• Keep your receipt, statement or payslip.
• Check whether the $42 association subscription rule is relevant.
• Avoid claiming private or unrelated memberships as work expenses.

Related Hamro Accountant tax guides

General information only: This article provides general Australian taxation information and does not constitute personal tax, financial, legal or professional advice. Whether an expense is deductible depends on the nature of the payment, its connection with your income-earning activities, whether you incurred the cost, whether you were reimbursed and your individual circumstances. Australian tax rules and ATO guidance can change. Check current ATO guidance and obtain advice appropriate to your circumstances before lodging your tax return.