There’s a whole section on the Australian Tax Office website where you can learn about what income you need to declare, deductions and offsets you can claim, and records you need to prove your claims.
Knowing what you cannot claim is just as important, and the ATO has revealed some of the “wild” work related expense tax claims people tried.
And spoiler alert: an air fryer generally won’t make the cut.
Some of the most outrageous deduction attempts the ATO saw last year included:
• A mechanic tried to claim an air fryer, microwave, two vacuum cleaners, a TV, gaming console and gaming accessories as work-related. The claim was denied as these expenses are personal in nature.
• A truck driver tried to claim swimwear because it was hot where they stopped in transit, and they wanted to go for a swim. The claim was denied as these expenses are personal in nature.
• A manager in the fashion industry tried to claim well over $10,000 in luxury-branded clothing and accessories to be well presented at work, and to attend events, dinners and functions. The clothing was all conventional in nature and was not allowed.
ATO Assistant Commissioner Rob Thomson reminded taxpayers that the ATO’s role is to collect the correct amount of tax that is owed, and exaggerated deduction attempts would not be tolerated.
This tax time, the ATO will be focused on areas where it sees frequent errors, including work-related expenses, working from home deductions and in respect to multiple income sources.
“Work-related expenses must have a close connection to your income earning activities, and you should be prepared to back it up, with records like a receipt or invoice,” Mr Thomson said.
“If your deductions don’t pass the ‘pub test’, it’s highly unlikely your claim would meet the ATO’s strict criteria.
“Don’t fall into the trap of thinking you can claim expenses like travel to and from work and childcare costs.
“These expenses are personal in nature and cannot be claimed. When in doubt, look for guidance on the ATO website or speak with your registered tax agent.
“If you’re anything like me, a paper receipt will get lost almost immediately. The myDeductions tool on the ATO app allows you to keep records of your work and general expenses to make lodging your tax return easier.”
More information on specific deductions for different jobs is available in the ATO’s occupation and industry specific guides.
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