As the end of financial year approaches, the ATO is shining a spotlight on some of the most bizarre — and ultimately disallowed — tax deduction claims Australian Tax Payers have made in recent months. At SBA, we’re here to help clients navigate tax time the smart way, with a little humour, and a lot of clarity.

The Weird and the Wishful: What People Tried to Deduct

From air fryers to gaming consoles, vacuum cleaners to swimwear, the ATO has seen it all. In fact, these unusual claims were all rejected for one simple reason: they had no clear connection to income-generating work.

Take, for example, the taxpayer who submitted deductions for an air fryer and a set of swimwear. While the fryer may have cooked a mean lunch, and the swimwear helped beat the heat between truck stops, neither item met the ATO’s definition of a valid work-related expense.

And let’s not forget the fashion industry professional who attempted to deduct over $10,000 in “work apparel” — all conventional clothing, which doesn’t qualify unless it’s occupation-specific, protective, or a compulsory uniform.

Other Creative Claims (That Didn’t Fly)

According to Chartered Accountants ANZ, more than 180 accountants shared jaw-dropping claims, including:

• Dog food for a “guard dog” that may have been more lapdog than Labrador.
• An engagement ring, presumably not purchased as a client gift! .
• A luxury yacht, perhaps better suited to leisure than ledger.
• Monthly haircuts, with the rationale that hair grows “during business hours.”

While amusing, these examples are serious reminders: if an expense doesn’t pass the ATO’s “pub test” — i.e. would a reasonable person think it’s legit? — it probably won’t pass official scrutiny either.

What the ATO Does Want to See

ATO assistant commissioner Rob Thomson laid it out plainly: work-related deductions must be directly linked to how you earn your income and must be backed up with proper records like receipts or invoices. No connection? No deduction.

He also warned against ‘double-dipping’ on working from home expenses — a common mistake where people claim for the same item twice under different deduction methods.

SBA’s Take: Don’t Push the Boundaries, Plan Properly

At SBA, we understand that EOFY can be stressful, but turning tax time into a shopping list for personal gadgets isn’t the answer. Our advice? Stay informed, be transparent, and don’t assume something is deductible just because it’s expensive (or imaginative).

If you’re ever unsure, check the ATO’s guidelines or have a chat with your  adviser. — https://www.smartcompany.com.au/tax/ato-ca-anz-tax-deductions-work-expenses/