Australia’s strangest tax deductions: H&R Block shares some of the weirdest write-offs Aussies tried to claim in 2023
One of Australia's top accounting firms has revealed the unusual tax returns Australians tried to sneak in last financial year.
H&R Block's Mark Chapman told Daily Mail Australia this tax season was busier than normal, with workers making more claims after the Albanian government ended low- and middle-income tax compensation.
From cigarettes for 'stress relief' to boob jobs for OnlyFans stars, Australians really pushed the definition of 'work expenses' last year.
“Job deductions depend on the field the client works in, so the weirder the job, the weirder the claims,” Mr Chapman said.
“We had a professional clown come into the office wanting to claim his costume and makeup, which is totally allowed because it's his profession.
'A professional sword swallower can declare the costs of his swords.
“People come to us because they want to claim their maximum deductions and understand what they are entitled to, especially now that the cost of living and the abolition of low and middle income taxes have been factored in.”
H&R Block revealed that some of its customers tried to claim cigarettes as work expenses for 'stress relief', while a taxpayer tried to claim sunscreen for his smoke breaks in a nearby park
However, there were some claims that simply could not be justified.
“It's common knowledge that you're entitled to sunscreen if you work outside,” Chapman said.
“But we drew the line at the customer who wanted to claim sunscreen and an umbrella because his office forced him to go to the park across the street to smoke, where he was occasionally exposed to sun or rain.”
Other clients went out of their way to claim travel expenses to and from work.
“They are usually unsuccessful because the daily commute is considered private – not work-related – travel and therefore not claimable,” he said.
'The only exception is when you need to transport large tools and equipment and you don't have a safe place to store them at work.
“That exception did not apply to the hairdresser who tried to claim the daily commute because she needed to transport her scissors and clippers, which, while sharp, were certainly not bulky.”
Other strange customers included a bouncer who tried to argue that his martial arts lessons should be covered, and a carpenter who tried to claim a European holiday as “research for his trade.”
However, porn stars filed some of the strangest tax claims, with many Australians questioning whether cosmetic surgery should be considered an expense for their work.
“Taxpayers in the adult entertainment industry can claim a variety of interesting deductions. “There is even an argument, as far as we know, which has not yet been tested, that breast enlargements could be tax deductible as a 'tool of trade',” Mr Chapman said.
'It's a controversial claim, even for adult performances, but the lady – with no known connection to the porn industry – who tried to claim her enhancements were necessary for work always faced an uphill battle.
'We could not see the connection and did not honor the claim.'
Expenditure on farm dogs and guard dogs can be deducted from taxes, but a tradie who tried to claim food for an 'occasionally' cooperating pup was rejected
Another client tried to use his smoking habit as an excuse to get some tax back.
“We all know that smoking is bad for you, but those who indulge are known to claim that it reduces their stress levels,” he said.
“On that basis, one taxpayer argued for a tax deduction for his habit as a form of 'stress relief.' We let it go up in smoke.'
Fortunately for farm and guard dog owners, the costs of purchasing and caring for the puppy (including food and vet bills) can be deducted from your taxes.
“Forget it,” said Mr. Chapman.
'So for the client who 'occasionally' took his dog to work to guard his tools and equipment and tried to claim the dog's food on that basis, the claim was politely denied.
“We never learned how he guarded his tools and equipment on the days he didn't take his dog to work.”
One worker successfully claimed a caravan from his taxes.
“A taxpayer who traveled extensively for work decided to buy a caravan to stay overnight while working, rather than paying for a hotel room every night,” Chapman said.
'From a tax perspective, this is deductible. But if you are in the same situation and also use the caravan for holidays, you must divide the deduction between work use and private use.'
Some Aussies could be entitled to claim travel related to their work, including one taxpayer who deducted the cost of a caravan
Mr Chapman also shared a tip for landlords looking to spruce up their properties.
'Did you know, in addition to the usual deductions – mortgage interest, rates, repairs – that you can claim items that improve the 'street appeal' of your home?' he said.
'Whether you think garden gnomes do that or not is really a matter of personal taste, but several customers have successfully claimed them for their rental property.
'A tip: make sure that the gnomes are actually in front of your rental property. If they occur in the garden of your family home, they are not deductible.'