ATO Unveils Wild Tax Deduction Attempts and Priorities for 2025
The ATO recently revealed some of the ‘wild’ work related expense tax claims people have tried to “put past” the ATO.
Some of the most outrageous deduction attempts the ATO saw last year included:
- A mechanic tried to claim an air fryer, microwave, two vacuum cleaners, a TV, gaming console, and gaming accessories as work-related. The claim was denied as these expenses are personal in nature.
- A truck driver tried to claim swimwear because it was hot where they stopped in transit and they wanted to go for a swim. The claim was denied as these expenses are personal in nature.
- A manager in the fashion industry tried to claim well over $10,000 in luxury-branded clothing and accessories to be well presented at work, and to attend events, dinners and functions. The clothing was all conventional in nature and was not allowed.
ATO Assistant Commissioner Rob Thomson reminds taxpayers that the ATO’s role is to collect the correct amount of tax that is owed, and that exaggerated deduction attempts would not be tolerated.
This tax time, the ATO will be focused on areas where it sees frequent errors, including work-related expenses, working from home deductions, and in respect to multiple income sources.
“Work-related expenses must have a close connection to your income earning activities, and you should be prepared to back it up, with records like a receipt or invoice.”
– Rob Thomson, ATO Assistant Commissioner, 2025
The ATO is also reminding Australians to declare all sources of income, and make sure they are included on their tax return. This includes “side hustles”, for example, if they are providing ride sourcing services or selling services via an app.
