Outrageous Deductions

Outrageous Deductions

The ATO is letting us know some of the ridiculous claims they received last financial year. Nearly 700 000 tax payers tried to claim almost $2 billion in “other” expenses. Of course, these claims were disallowed, however it didn’t stop the ATO from highlighting some of them.

The ATO’s systematic review of claims disallowed;

– lego sets bought as gifts

– sporting equipment or membership fees for their child athletes

– dental expenses (believe it or not, a nice smile is not essential to finding a job!)

– a brand new car (more than $20 000)

– a brand new car bought as a gift for their Mum

– the cost of raising twins (no!)

– the cost of raising three kids (still no!)

– the cost of a new born child (supposedly the claim said, “new-born expensive”)

– child support

– private school fees

– school uniforms

– before school care and other school expenses

– health insurance and medical expenses and finally;

– a wedding reception

Another big NO from the ATO were some of the “other” deduction claims as they were not related to expenses incurred in earning assessable income. To claim an expense as a “other” deduction, the ATO is reminding taxpayers that the expenses must be directly related to earning income and they need to have a receipt or record of the expense.