What’s the craziest business expense you’ve ever tried to claim? Are you trying to sneak in deductions on work snacks or a gym membership so you can look good for the clients? Nice try, but the ATO’s not buying your protein bars or your gains.
To remind Australians that the end of the financial year is fast approaching, the ATO has compiled a list of their favourite ‘wild’ tax deduction attempts. We think you can probably guess why they didn’t get approved.
From air fryers to personal luxuries, several taxpayers tried their luck with expenses that failed to meet the ATO’s criteria.
A mechanic attempted to claim an air fryer, microwave, two vacuum cleaners, a TV, and a gaming console complete with accessories as work-related. The ATO found the items were personal in nature and denied the claim.
A manager working in the fashion industry attempted to deduct more than $10,000 in designer clothing and accessories. The ATO ruled the items were conventional and not deductible. Harsh, but they’ll just have to forget that Fendi.
One truck driver even tried to claim a set of bathers, reasoning it was too hot outside and they wanted to cool off with a swim during a rest stop. The ATO did not allow it.
ATO Assistant Commissioner Rob Thomson has said deductions must have a clear connection to income-earning activities.
“While some people have tried their luck with unusual work-related deduction claims, most people realise to be able to claim an expense, it needs to meet strict criteria.”
“While a lunchtime dip might clear your head for work, swimwear for a truck driver is clearly not deductible.”
“We know in many instances mistakes relating to work-related expenses could be avoided with a little time and effort,” Thomson said.
In 2024, more than 10 million people claimed work-related deductions, with a significant number of these related to working from home.
Thomson reminded Aussies to avoid common mistakes, like claiming travel to and from work or childcare costs, which are personal expenses.
And most importantly, that you have to declare all income sources, no matter the nature. That’s right people: input your side hustles (or else).
“If your deductions don’t pass the ‘pub test’, it’s highly unlikely your claim would meet the ATO’s strict criteria,” Thomson continued.
Perhaps you’ll play it safe this year and stick to the claims you know will get over the line. Or maybe you’ll roll the dice and land yourself on the ATO’s next list of bizarre tax returns.
We’ve heard rumours of claims for beautiful shoes, accessories for their pets, and even particular tools for taxpayers working in the adult industry.
Whatever you’re planning to claim this financial year, this is your unofficial reminder to get your receipts in check, because June 30 will soon be knocking on your door.
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