‘Dubious claims’: Wild expenses Aussies try to sneak past ATO

Aussie taxpayers have tried to sneak some “dubious’ expenses past the taxman, with one expert detailing some of the most outlandish claims.

Australians have tried to claim island holidays, haircuts and even swimwear used for a lunch break dip on their tax, experts have revealed.

As Australians gear up for tax time, workers have been urged to resist the temptation to get too creative with their returns, as the ATO looks to clamp down on dodgy claims.

Chartered Accountants Australia and New Zealand tax leader Susan Franks said a client of one tax agent had tried to claim a luxury yacht as a work expense because they needed to do business on an island. Others have tried to claim engagement rings, hair cuts due to their hair growing at work and even pilates equipment due to a sore back.

“There were many dubious claims related to health, wellness and personal aesthetic, including one for the cost of a gym membership, as the individual needed to be strong and fit to renovate their rental property,” Ms Franks said.

“Another related to a pilates reformer machine purchased to help an office worker who had a sore back.”

Taxpayers have tried to claim on engagement rings and gym memberships. Picture: NewsWire/ Monique Harmer

Ms Franks said some Australians tried to claim big-ticket purchases through loose links to their job or business.

“We also noticed a trend of big-ticket luxury purchases passed off as business and work expenses, including one who tried to claim a family trip to a tropical island was related to their earthmoving business,” Ms Franks said.

“Another claimed a luxury yacht as a work expense – because they might have some business to do on the islands.”

She said taxpayers also tried to claim vet and food bills for pets, pools and school fees.

Ms Franks said despite the temptation, Aussies should only claim fair tax-related expenses.

“We understand that some Australians might be tempted to push the boundaries, but let’s avoid making dubious claims this year,” she said.

Meanwhile, the Australian Taxation Office said this year it was taking aim at work-related and working-from-home deductions of the nation’s 15 million taxpayers.

Australians are trying to pass some ‘dubious’ claims past the ATO. Picture: NewsWire / Nicholas Eagar

According to the tax office, more than 10 million people claimed work-related deductions, including working-from-home claims, in the last financial year, although some Australians took it a little too far.

One was a mechanic claiming an air fryer, TV, gaming console and other electrical items as work expenses, while another was a fashion industry manager wrongly claiming more than $10,000 in luxury-branded personal clothing and accessories.

In another case, a truck driver tried claiming swimwear used to take a dip during a stop along the highway.

ATO assistant commissioner Rob Thomson reminded taxpayers that the ATO’s role was to collect the correct amount of tax owed, and 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.”

Mr Thomson said if your deductions didn’t pass the “pub test”, it was 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,” Mr Thomson said.

“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.”

Originally published as ‘Dubious claims’: Wild expenses Aussies try to sneak past ATO