Tax return: 11 things you can’t claim that Aussies try to get away with

Every year taxpayers try and make some questionable claims in their tax return. Find out what won’t fly with the ATO.

Sneaky claims like cosmetic surgery, golf club memberships or even artificial limbs are some of the deductions that the tax man won’t let you get away with.

Mark Chapman, director of tax communications at H&R Block, said it was surprising the things people try to claim.

The general rule is that if you incur an expense as part of your job and aren’t reimbursed by your employer, you can make a claim, he said.

But he has seen some pretty creative attempts to make claims on a range of categories from personal grooming to medical costs.

Find out what deductions you can’t make on your tax return.

Childcare

Parents might argue that the only way they can work is to put their children into daycare, so it must be a work-related expense, but this is wrong, Mr Chapman said.

“Childcare is a private cost and not tax deductible,” he said.

Gym memberships

It’s true that many people need a high level of fitness to do their jobs, such as police officers or military personnel, but that doesn’t mean they can claim a deduction for getting fit, Mr Chapman said.

“The category of people who can claim a deduction for gym memberships is restricted to those whose fitness level is well in excess of the norm,” he said.

“So, normal military personnel can’t make a claim but members of the special forces can make a claim, and so can professional sportspeople, but not gym teachers.”

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Gym memberships can’t be claimed unless an extreme level of fitness is required. Picture: iStock

Business suits

It’s well known that deductions can be claimed for things like protective clothing, work-related uniforms and occupation-specific clothing, like barristers’ robes, but in bad news for others, conventional clothing isn’t claimable.

“Many people try to argue that their business suits are occupation-specific because they never wear a suit outside work. Sadly, the ATO doesn’t agree; such items are regarded as conventional clothing and are not deductible,” Mr Chapman said.

“In addition, you can’t claim a deduction for getting your business attire laundered or dry cleaned for the same reason.”

RELATED: Surprising things you can claim at tax time

Personal grooming

You might need to look your best for work but that doesn’t mean that the money spent on hair care, make-up and even cosmetic surgery is tax deductible – such costs are regarded as private in nature and not claimable, Mr Chapman said.

Home to work travel

As a general rule, the cost of the daily commute isn’t deductible so enduring that train or car ride is all on you.

“So far as the ATO is concerned, the daily grind begins when you get to work and ends when you leave, so the time you spend getting to and from work is private in nature and expenses associated with it, such as train fares or petrol, are not claimable,” he said.

But in good news there are exceptions. If you’re required to carry bulky tools or equipment or if you are an “itinerant” worker – someone with no fixed workplace who travels to different worksites every day – you may be able to make claims.

“But expect the ATO to look closely if you claim to fall into one of those exemption,” he warned.

Make up and cosmetic surgery is a private cost for taxpayers. Picture: Getty Images

Pay-TV subscriptions

Lots of marketing, PR and media people would love to claim the cost of their Netflix or Foxtel subscriptions but the number who can actually do it is small, and even then only a proportion can be claimed.

“You can claim if you can show that you’re required to access pay TV as part of your work,” he said.

“The amount of the deduction is limited to the content that is specific to earning your income.”

Sporting club memberships

There are many people who think networking on the golf course must be a deduction.

“Surely, a business meeting on the golf course is more likely to land a deal than sitting around the boardroom table? Quite possibly, but that doesn’t make golf club memberships or other similar costs, such as tennis clubs or MCG memberships, a claim,” he said.

“Such expenses are private in nature and not deductible.”

Don’t jump for joy if you think you’re golf club membership can be claimed as a deduction. Picture: iStock

Entertainment

Landing new business by taking customers out to that swanky new restaurant that’s just opened, doesn’t cut any ice with the tax man, Mr Chapman warned. Money spent on entertaining is not tax deductible, he said.

Medical costs

Some people have medical issues that impact their ability to work, so the thinking goes that if they need to invest in medical treatment or appliances to help with the health issue, it must be tax deductible, Mr Chapman said.

“As a result, we see lots of people trying to claim for things like sleep apnoea machines, hearing aids, wheelchairs and artificial limbs,” he said.

“Unfortunately, the ATO regards the cost of such devices as private in nature since they are primarily intended to improve the health and wellbeing of the taxpayer. So, the costs are not deductible.”

For those confused, there used to be a tax offset for medical expenses, which provided an alternative way for many people to obtain tax relief for this kind of expense. Sadly, it was abolished on July 1, 2019, he said.

Medical costs like a wheelchair can’t be claimed. Picture: Supplied

Toilet paper

Davide Costanzo, chairman of the Moore Australia Tax Committee, notes that expenses of a private nature such as meals, tea and coffee, toilet paper, clothing and gym memberships are some of the common claims that people try and get away with.

Home ownership costs

Individuals may be tempted to claim some home ownership costs in relation to the home office, such as interest on the home loan or occupancy expenses like rates.

“While this may be allowable in certain scenarios, it is very important to note that this may lead to capital gains tax on the disposal of your family home, which may have otherwise been an exempt gain under the main residence exemption,” Mr Costanzo said.