Each and every year we see clients who like to claim deductions for what, on first appearance, seem to be unusual for tax claim purposes. Here are a few examples of ‘odd’ deductions and things to consider:
If you can claim a briefcase or a special purpose computer bag, then why not a handbag? Well, you can if you can show that the handbag is used to carry items such as a mobile phone, a laptop computer, an iPad, notebook, writing pad or other bulky devices used specifically for business purposes. You need to consider though that, if challenged, the ATO will need to be convinced that the sole purpose of the handbag is for work and you aren’t provided with say a laptop bag by your employer.
Well, this falls into similar parameters as handbags – as long as it is used exclusively for work and for carrying of work supplies such as business flyers, stationary or other work items.
One main exception to this rule are some employees in the airline industry. Professionals in this industry can claim a deduction for the decline in value of their luggage use for employment.
Performing artists can claim a deduction for the cost of a particular hairstyle if it is required for a role. Workers in this particular industry, as well as those in the adult entertainment sector, can also claim a deduction for the cost of stage make-up, as well as the cost of washing products for removing the make-up.
It’s important to note that even though you might think “looking good” is a reasonable requirement of your job, not all industries can claim this type of deduction. While you might think workers such as hairdressers or shop assistants might be able to claim personal grooming, unfortunately, they cannot.
Flight attendants are able to claim for hair and beauty products, such as moisturisers and conditioners, as they are exposed to irregular, dry working conditions inside an aircraft.
Transporting Bulky Goods
Workers that transport, and even store, bulky tools or equipment in their vehicle, can claim running costs of their car. This applies to workers that use the vehicle for trips between their home and place of employment and there is no safe storage facility for the equipment at their workplace.
These types of deductions typically relate to labourers, mechanics, electricians, construction workers, cleaners and truck drivers, to name a few.