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The Australian Taxation Office has revealed some of the most “outrageous” things people tried to deduct from their tax returns last year.
Tax deductions are reserved for work-related expenses, but the ATO says not everyone got the memo.
One mechanic attempted to claim an air fryer, microwave, two vacuum cleaners, a television, a gaming console, and gaming accessories as expenses related to his job, but his claim was rejected.
Another instance involved a truck driver who tried to expense a pair of swimming trunks because he wanted to take a dip during his rest stop in a hot location on his route.
In yet another example, a manager in the fashion industry attempted to claim $10,000 worth of designer clothing, arguing it was necessary to maintain a polished appearance at work and business functions.
Her request was denied because the clothes were “conventional” and not uniforms, so they are considered a personal item, not a work item, the ATO said.
The ATO called the tax deduction claims “outrageous” and “wild”.
ATO Assistant Commissioner Rob Thomson told taxpayers that exaggerated deduction attempts would not be tolerated.
“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,” he said.
“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.”
This year, the ATO says it will be focusing on areas it often sees errors in, like work-related expenses and work-from-home deductions.
“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,” Thomson said.
“If your deductions don’t pass the ‘pub test’, it’s highly unlikely your claim would meet the ATO’s strict criteria.”
Anyone looking for guidance on what you can or can’t claim can check the ATO website for more information.