Tax time always brings out some creative thinking, but this year, the Australian Taxation Office (ATO) has seen some truly “wild” tax deduction attempts. If you’ve ever wondered what not to claim on your tax return, you’re about to find out!
The Most Outrageous Claims of the Year
Every year, the ATO reviews thousands of work-related expense claims—and not all of them pass muster. Here are just a few of the more “imaginative” deductions people tried to sneak through last year:
- A mechanic tried claiming an air fryer, microwave, two vacuum cleaners, a TV, a gaming console, and gaming accessories—all as work-related expenses. Unsurprisingly, the ATO said no, as these are clearly for personal use.
- A truck driver attempted to claim swimwear, arguing it was needed for a quick dip on hot days while on the road. Nice try, but swimwear isn’t deductible.
A fashion industry manager submitted a claim for over $10,000 in luxury-branded clothing and accessories, justifying it as necessary for work events and looking sharp at the office. The ATO knocked this back too—conventional clothing, even if it’s high-end, generally isn’t deductible.
The ATO’s Message: Stick to the Rules
ATO Assistant Commissioner Rob Thomson summed it up well: “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.”
The key takeaway? If your claim doesn’t pass the “pub test” (i.e., if you couldn’t honestly explain it to a mate at the pub without raising eyebrows), it probably won’t pass the ATO’s scrutiny either.
What the ATO Is Focusing on for 2025
For the 2025 tax year, the ATO is zeroing in on common problem areas:
- Work-related expenses
- Working from home deductions
- Multiple income sources (including side hustles and gig work)
If you’re claiming work-related expenses, make sure there’s a clear connection to your income-earning activities. And be ready to back up your claims with receipts, invoices, or other records. Remember: travel to and from work, and childcare costs, are personal expenses and can’t be claimed.
Working from Home? Here’s What You Need to Know
With millions of Australians working from home, the ATO is paying close attention to these deductions. There are two main ways to claim:
- Fixed Rate Method
- Claim 70 cents for every hour you work from home.
- This covers running costs like electricity, internet, phone, and stationery.
- You can’t claim these items separately elsewhere in your return—no double dipping!
- Actual Cost Method
- Claim the actual work-related portion of your home office expenses.
- You’ll need detailed records for every expense you claim.
To qualify, you must actually be working from home (not just checking the odd email), and you need to prove you incurred extra costs as a result.
Don’t Forget: Declare All Your Income
The ATO is also reminding everyone to declare all sources of income. This includes your main job, side hustles (like ride-sharing or selling services online), and any other income streams. Each income source may have different deductions available, so it’s important to get it right.
Make Tax Time Simpler
ATO Assistant Commissioner Thomson recommends using the myDeductions tool in the ATO app to keep track of your expenses—no more lost receipts! When you’re ready to lodge, you can share your saved deductions with your registered tax agent or upload them directly to myTax.
When in Doubt, Ask an Expert
Not sure what you can claim? Don’t just “claim it and hope for the best.” The ATO website has detailed guidance, or you can reach out to a registered tax professional (like us!) for personalised advice. Incorrect claims can lead to penalties and interest, so it’s always better to be safe than sorry.
Ready to Lodge Your Tax Return?
At Personal Tax Specialists, we make tax time simple for busy Australians. Our fully online process is fast, secure, and designed to maximise your refund with minimal hassle. Whether your situation is straightforward or involves investments, rental properties, or work-from-home deductions, our experienced team has you covered.
Submit your tax return online now—just click the link below to get started:
👉 Submit Your Tax Return
You’ll receive a personalised checklist tailored to your needs, and our expert accountants will handle the rest. Prefer to have your fee deducted from your refund? We offer that too, for a small additional charge.
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