Tax time in Australia can be a confusing period, even for the most seasoned among us. With rules that seem to change every year and a mountain of receipts to sort through, it’s no wonder some people get a little creative with their claims.
But as the Australian Taxation Office (ATO) has revealed, some Australians have taken ‘creative’ to a whole new level—trying to claim everything from airfryers to designer swimmers as work-related expenses!
Every year, the ATO sifts through millions of tax returns, and every year, a few stand out for all the wrong reasons. This year, the ATO has shared some of the most ‘outrageous’ and ‘wild’ claims they’ve seen, and they’re a timely reminder of what not to do when lodging your return.
Take, for example, the mechanic who tried to claim an airfryer, a microwave, two vacuum cleaners, a television, a gaming console, and gaming accessories—all as work-related expenses. Unless he was running a side business as a home appliance tester, the ATO wasn’t buying it. His claim was swiftly denied.
Then there was the truck driver who, feeling the heat on his long journeys, decided to claim a pair of swimmers. His reasoning? He wanted to cool off with a dip during his breaks. While we can all sympathise with the desire for a refreshing swim, the ATO made it clear: swimwear for a truck driver doesn’t make the cut.
And let’s not forget the fashion industry manager who tried to claim a whopping $10,000 in designer clothes, arguing that she needed to look sharp for work and business events. The ATO’s response? Unless it’s a uniform or occupation-specific clothing, it’s considered a personal expense—no matter how stylish you look.
It’s easy to see how the lines can get blurred, especially with so many of us working from home or in less traditional roles. But the ATO is crystal clear: to claim a work-related expense, it must have a direct connection to your income-earning activities.
In other words, if you can’t prove that the item is essential for your job—and not just for your personal comfort or enjoyment—it’s not deductible.
ATO Assistant Commissioner Rob Thomson put it: ‘While a lunchtime dip might clear your head for work, swimwear for a truck driver is clearly not deductible.’
He also warned that exaggerated or dubious claims won’t be tolerated, and that the ATO is keeping a close eye on work-related expenses and work-from-home deductions this year.
‘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.
A handy rule of thumb? If your deduction wouldn’t pass the ‘pub test’—that is, if you couldn’t explain it to a mate at the pub without raising eyebrows—it probably won’t pass muster with the ATO either.
The ATO also reminds us that you need to keep records, such as receipts or invoices, to back up your claims. If you can’t provide evidence, you’re unlikely to get away with it.
While these wild claims make for entertaining reading, the reality is that most mistakes are less dramatic and more about misunderstanding the rules.
If you’re ever in doubt about what you can or can’t claim, the ATO website is a great resource, with detailed guides for different occupations and types of expenses. You can also speak to a registered tax agent for personalised advice.
As tax time approaches, the spotlight on deduction claims is once again front and centre. While the ATO continues to remind taxpayers of the importance of accuracy and eligibility, these examples serve as a timely reminder to check the fine print.
Have you ever been unsure about what you can or can’t claim on your tax return? Do you think the current guidelines are clear enough? Share your experiences or questions in the comments below.
Also read: The ATO’s new rules could cost you that ‘instant’ $1,000 tax deduction
