The six things you can’t claim this tax period
Sophie Venz* says Doggy daycare, Ugg boots and Tim Tams won’t produce tax savings.
Small business owners and employees are once again warned to play it safe with their tax returns this year-end, as the Australian Taxation Office seeks to crack down on certain deductions.
After two years of working from home and disruptions due to COVID-19, the ATO still expects a large number of telework requests to flow through its channels.
Unfortunately for many, Tim Tams are still banned.
“We don’t want to see Tim Tams as a tax deduction on your return,” ATO Deputy Commissioner Tim Loh said last April, a comment that also rings true for the 2021-22 fiscal year.
“If you incur the cost at home, it’s not deductible,” Loh said.
CPA Australia is trying to help the Aussie stay on the safe side of the ATO, with a statement from its resident tax expert Elinor Kasapidis sharing the six deductions that won’t pass the tax office this time around.
The six non-franchises
“You went back to the office and Rover destroyed the couch, so now he’s at dog daycare.”
“Yes, we saw the Instagram post; no, the cost cannot be deducted,” says Kasapidis.
Your work-from-home wardrobe
“Trackie-daks and Ugg boots may be the new black in ‘work from home’ clothing, but they are not a ‘uniform’ for tax purposes and cannot be deducted.”
Zoom-Ready Home Decor
“Okay, your Zoom background is ‘amazing balls,’ but those carefully selected books, plants, and rugs aren’t deductible.”
A new Chanel tote bag (and any other handbag, for that matter)
“Even if your purse is big enough to hold a laptop, if it’s not needed to carry work items, that’s a firm ‘no’ as a tax deduction.”
“Just because your workplace has a hot yoga class on ‘Wellness Fridays’ doesn’t mean your down dog is deductible when working from home.”
Tim Tams (and other treats)
“Sometimes we all need a Tim Tam or 12 to get through the work day.
“Your boss may provide bikkis at work, but that doesn’t mean you can claim them when working from home.”
“When it comes to claiming deductions, if you think it’s a ‘yes, no’ situation, the answer is probably ‘no’,” Kasapidis warned Australians.
*Sophie Venz is the coordinating publisher of SmartCompany Plus.
This article was first published on smartcompany.com