Australians’ craziest tax claims laid bare by tax agents, ATO

Industry insiders lift the lid on crazy things cheeky Aussies tried to claim at tax time. Some of the items truly push the boundaries of ‘tax deductible’.

Garden gnomes, pyjamas and even sex toys are just some of the crazy items Aussies tried to claim cash back for this tax time.

Up until the tax return lodging period on October 31, millions of Australians were getting their affairs in order to claim on all sorts of deductions, depending on employment, housing status and other criteria.

Depending on your situation, there are a variety of tax deductions you could be eligible for.

Australians have claimed a variety of weird and wonderful items this tax time, according to industry insiders.

But thousands of Aussies have also made some truly weird and wonderful tax claims, raising the eyebrows of the employees at the Australian Taxation Office.

ATO Assistant Commissioner Tim Loh said the 2020-2021 financial year’s tax claims had been made even wackier thanks to the pandemic.

“Every year people try to pull the wool over our eyes and claim things they maybe shouldn’t, and this year has been no exception,” Mr Loh said.

ATO assistant commissioner Tim Loh.

“This year, with the amount of people working from home, there’s been claims for pyjamas, Ugg boots, coffee tea and Tim Tams- even toilet paper.”

“But because these aren’t directly related to earning an income- and comforts that an employer might provide- they can’t be claimed as expenses.”

Mr Loh added: “We had a worker claim a $600 coffee machine, and a real estate agent tried to claim almost $2000 for food bought while working from home … those are private expenses too.”

Some Aussies have tried to claim the cost of their pyjamas back on tax while working from home.

Other quirky claims during Aussie tax returns included one motorist trying to claim $11,000 in car costs for driving to and from work, and several pet parents who attempted to claim doggy daycare so they could work uninterrupted.

Some investment property owners could even claim renovations or repair costs.

But whether it’s ignorance or pure cheekiness, Mr Loh said Australians could genuinely claim some left field expenses.

Garden gnomes are an odd but very possible tax deduction if you own an investment property.

“Millions of Australians do their tax return each year, some claims are out of lack of knowledge, others are people taking the mickey … though if it‘s an honest mistake come and speak to us,” Mr Loh said.

“Even if you have an unusual deduction, you should claim it if you are entitled to it, and similarly, if we find you’re deliberately making false claims, the ATO will investigate.”

He added: “Doing tax returns might seem intimidating, but we just want people to get it right the first time and are here to help.”

Tax agent H & R Block has also seen a variety of unusual attempted deductions, according to Director of Tax Communications Mark Chapman.

H & R Block Mark Chapman. Supplied

“People have put in deduction for things like pool tables, garden gnomes or even sex toys,” Mr Chapman said.

“But the thing is, they could be eligible for the deduction if their pool table is for a business’s staffroom, if the garden gnome is for an investment property, and if they are an adult performer who uses sex toys as equipment, much like any other worker like a hairdresser or builder who uses tools.”

Actors have successfully claimed acting lessons, musicians music lessons or instrument costs, and even sword swallowers could claim ceremonial swords.

Writing pens, pencils, paperclips, colour sheets for notes could all be claimed if your employer normally provides them for you.

But while the costs of stationery like pens and pencils while you work from home might be deducted, claiming your pet dog’s food and toy costs, or artwork for your private lounge room won’t cut it.

“It has to be a fair deduction, for work purposes, you can’t claim a pet poodle as a security dog, or an expensive painting and say it’s hanging in your building’s reception area when in fact it’s in your lounge room, the tax office will decline it,” Mr Chapman said.

While the cut-off date for filing your tax return was October 31, the cut off date for filing your tax return if you are registered with a tax agent is May 15.

“While the unusual claims are small, less than five per cent of what we do, it does raise a smile,” Mr Chapman said.

“If you’re registered with a tax agent, it’s not too late- you could claim something before the cut-off.”