Weirdest tax deductions revealed

Aug 26, 2019 | Compliance, Tax

Would you claim the Lego you bought for your kids throughout the year as a tax deduction? One taxpayer did and it made the Australian Taxation Office’s 2018-19 list of most unusual claims.

The Lego was not the only claim for money spent on kids. Another taxpayer claimed their children’s sports equipment and sporting membership fees. Others claimed school uniforms, and before and after school care. And, others claimed, “the cost of raising twins,” the “cost of raising three children” and simply, “New born baby expensive.” Yes indeed, but the expenses, while often shocking to parents, are not deductible.

Cars were also a favourite. The ATO says that “many” taxpayers tried to claim the full purchase price of their new cars as a tax deduction. This included the taxpayer who claimed the cost of the new car he bought for his mother as a gift. Nice gesture but still not deductible.

Medical and dental expenses also featured heavily. The most striking was the couple that claimed the cost of their dental expenses, “believing a nice smile was essential to finding a job.” Medical and dental expenses in general are personal expenses and not deductible.

Also making the list was the couple who claimed the cost of their wedding reception as a tax deduction.

The unusual claims all came from the ‘Other’ deductions section of the tax return. In order to claim an ‘other’ deduction, the expenses must be directly related to earning income and you need to have a receipt or record of the expense. If your expense relates to your employment, it should be claimed at the work-related expenses section of the return.

Latest Blog Articles

Closing the gender superannuation gap

In recent times a spotlight has been shone on the gender pay gap, resulting in greater awareness of women’s conditions in the workforce. Yet we’re still overlooking how lower wages translate into a retirement savings gender gap.Closing the gender superannuation gap

read more

Did your super fund receive a compensation payment?

Of late, there have been several compensation payments made by financial services providers to customers that were inappropriately charged or overcharged for insurance premiums or services they did not receive, etc. Did your super fund receive a compensation payment?

read more

2022: The year ahead

2021 was to be the year we returned to a post-COVID normal however the pandemic has fundamentally changed the way many of us operate in our personal and work lives. Here is some of what we can expect in 2022. 2022: The year ahead

read more

Need some help with your tax deductions?

We’re here to help, don’t let your questions go unanswered. Complete your query below and we’ll respond.

15 + 7 =

The material and contents provided in this publication are informative in nature only.
It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

 

Liability limited by a scheme approved under Professional Standards Legislation