Latest news with #SusanFranks
West Australian
07-05-2025
- Business
- West Australian
ATO and tax experts reveal most ‘outrageous' things Aussies have tried to claim back
Yachts, island holidays, gaming consoles and even swimwear for a truck driver looking to cool off have featured among a collection of wild expense claims Australians have tried to slip past the tax office. Ahead of the 2025 tax period, Australia's revenue collection agency has signalled what it will be cracking down on this year while warning exaggerated deduction attempts 'would not be tolerated'. Among the 'most outrageous' work-related deduction attempts the Australian Taxation Office (ATO) received last year was a truck driver who tried to claim swimwear because they had stopped in a hot place and needed a swim, and an unnamed fashion industry manager who wanted to be reimbursed more than $10,000 they spent on luxury clothing bought to attend dinners and other functions. A third example shared by the ATO was of a mechanic who tried to claim gaming consoles, a TV, an air fryer and vacuum cleaners as work-related expenses. All claims were denied. 'While some people have tried their luck with unusual work-related deduction claims, most people realise to be able to claim an expense it needs to meet strict criteria,' ATO Assistant Commissioner Rob Thomson said. 'While a lunchtime dip might clear your head for work, swimwear for a truck driver is clearly not deductible. 'We know in many instances mistakes relating to work-related expenses could be avoided with a little time and effort.' The 'revealing' length some Australians are willing to stretch the truth if they can score a tax break was also identified when Chartered Accountants ANZ (CA ANZ) surveyed 180 tax experts. One taxpayer tried to claim a luxury yacht as a work expense because 'they might have some business to do' on some islands, while another wanted to be paid back for monthly salon trims because their 'hair grows during business hours'. 'There were many dubious claims related to health, wellness and personal aesthetic, including one for the cost of a gym membership as the individual needed to be strong and fit to renovate their rental property,' CA ANZ tax lead Susan Franks said. 'Another related to a Pilates reformer machine purchased to help an office worker who had a sore back. 'We also noticed a trend of big-ticket luxury purchases passed off as business and work expenses, including one who tried to claim a family trip to a tropical island was related to their earthmoving business.' Other taxpayers tried to claim vet and food bills for their pets, a pool, school fees and an engagement ring. Franks said the attempts were cheeky but discouraged people from making fraudulent claims 'because the ATO will not be laughing'. The tax office said work-related expenses, working from home deductions and side hustles would be in the microscope this year, claiming these are areas that produce 'frequent errors'. More than 10 million people claimed work-related deductions in 2024, and many lodged expenses relating to working from home. '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,' Thomson said. 'If your deductions don't pass the 'pub test', it's highly unlikely your claim would meet the ATO's strict criteria. The advice for taxpayers is to check the ATO website and to consider using its app where expense records can be stored and later shared with your tax agent or uploaded to myTax when lodging your return.
Perth Now
07-05-2025
- Business
- Perth Now
Most ‘outrageous' claims Aussies have tried to slip past the taxman: ‘Dubious'
Yachts, island holidays, gaming consoles and even swimwear for a truck driver looking to cool off have featured among a collection of wild expense claims Australians have tried to slip past the tax office. Ahead of the 2025 tax period, Australia's revenue collection agency has signalled what it will be cracking down on this year while warning exaggerated deduction attempts 'would not be tolerated'. Among the 'most outrageous' work-related deduction attempts the Australian Taxation Office (ATO) received last year was a truck driver who tried to claim swimwear because they had stopped in a hot place and needed a swim, and an unnamed fashion industry manager who wanted to be reimbursed more than $10,000 they spent on luxury clothing bought to attend dinners and other functions. A third example shared by the ATO was of a mechanic who tried to claim gaming consoles, a TV, an air fryer and vacuum cleaners as work-related expenses. All claims were denied. 'While some people have tried their luck with unusual work-related deduction claims, most people realise to be able to claim an expense it needs to meet strict criteria,' ATO Assistant Commissioner Rob Thomson said. 'While a lunchtime dip might clear your head for work, swimwear for a truck driver is clearly not deductible. 'We know in many instances mistakes relating to work-related expenses could be avoided with a little time and effort.' The 'revealing' length some Australians are willing to stretch the truth if they can score a tax break was also identified when Chartered Accountants ANZ (CA ANZ) surveyed 180 tax experts. One taxpayer tried to claim a luxury yacht as a work expense because 'they might have some business to do' on some islands, while another wanted to be paid back for monthly salon trims because their 'hair grows during business hours'. 'There were many dubious claims related to health, wellness and personal aesthetic, including one for the cost of a gym membership as the individual needed to be strong and fit to renovate their rental property,' CA ANZ tax lead Susan Franks said. 'Another related to a Pilates reformer machine purchased to help an office worker who had a sore back. 'We also noticed a trend of big-ticket luxury purchases passed off as business and work expenses, including one who tried to claim a family trip to a tropical island was related to their earthmoving business.' Other taxpayers tried to claim vet and food bills for their pets, a pool, school fees and an engagement ring. Franks said the attempts were cheeky but discouraged people from making fraudulent claims 'because the ATO will not be laughing'. With tax time creeping nearer, the ATO has shared some of the wildest claims made by taxpayers. Credit: d3sign / Getty Images The tax office said work-related expenses, working from home deductions and side hustles would be in the microscope this year, claiming these are areas that produce 'frequent errors'. More than 10 million people claimed work-related deductions in 2024, and many lodged expenses relating to working from home. '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,' Thomson said. 'If your deductions don't pass the 'pub test', it's highly unlikely your claim would meet the ATO's strict criteria. The advice for taxpayers is to check the ATO website and to consider using its app where expense records can be stored and later shared with your tax agent or uploaded to myTax when lodging your return.
7NEWS
07-05-2025
- Business
- 7NEWS
ATO and tax experts reveal most ‘outrageous' things Aussies have tried to claim back
Yachts, island holidays, gaming consoles and even swimwear for a truck driver looking to cool off have featured among a collection of wild expense claims Australians have tried to slip past the tax office. Ahead of the 2025 tax period, Australia's revenue collection agency has signalled what it will be cracking down on this year while warning exaggerated deduction attempts 'would not be tolerated'. Among the 'most outrageous' work-related deduction attempts the Australian Taxation Office (ATO) received last year was a truck driver who tried to claim swimwear because they had stopped in a hot place and needed a swim, and an unnamed fashion industry manager who wanted to be reimbursed more than $10,000 they spent on luxury clothing bought to attend dinners and other functions. A third example shared by the ATO was of a mechanic who tried to claim gaming consoles, a TV, an air fryer and vacuum cleaners as work-related expenses. All claims were denied. 'While some people have tried their luck with unusual work-related deduction claims, most people realise to be able to claim an expense it needs to meet strict criteria,' ATO Assistant Commissioner Rob Thomson said. 'While a lunchtime dip might clear your head for work, swimwear for a truck driver is clearly not deductible. 'We know in many instances mistakes relating to work-related expenses could be avoided with a little time and effort.' Island holidays and hair cuts The 'revealing' length some Australians are willing to stretch the truth if they can score a tax break was also identified when Chartered Accountants ANZ (CA ANZ) surveyed 180 tax experts. One taxpayer tried to claim a luxury yacht as a work expense because 'they might have some business to do' on some islands, while another wanted to be paid back for monthly salon trims because their 'hair grows during business hours'. 'There were many dubious claims related to health, wellness and personal aesthetic, including one for the cost of a gym membership as the individual needed to be strong and fit to renovate their rental property,' CA ANZ tax lead Susan Franks said. 'Another related to a Pilates reformer machine purchased to help an office worker who had a sore back. 'We also noticed a trend of big-ticket luxury purchases passed off as business and work expenses, including one who tried to claim a family trip to a tropical island was related to their earthmoving business.' Other taxpayers tried to claim vet and food bills for their pets, a pool, school fees and an engagement ring. Franks said the attempts were cheeky but discouraged people from making fraudulent claims 'because the ATO will not be laughing'. The tax office said work-related expenses, working from home deductions and side hustles would be in the microscope this year, claiming these are areas that produce 'frequent errors'. More than 10 million people claimed work-related deductions in 2024, and many lodged expenses relating to working from home. '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,' Thomson said. 'If your deductions don't pass the 'pub test', it's highly unlikely your claim would meet the ATO's strict criteria. The advice for taxpayers is to check the ATO website and to consider using its app where expense records can be stored and later shared with your tax agent or uploaded to myTax when lodging your return.
Yahoo
07-05-2025
- Business
- Yahoo
Dodgy tax claims exposed as ATO reveals 'hit list' for 2025: 'Wanted to deduct $30,000'
A pair of swimmers, a luxury yacht and hair care are not acceptable tax deductions. · Getty Accountants have revealed some of the 'cheekiest' tax claims Australians have tried to sneak past as the Australian Taxation Office (ATO) reveals its 'hit list' for 2025. You might think a luxury yacht or an engagement ring would be a far-fetched deduction, but they were legitimate claims put through last year. Chartered Accountants ANZ (CA ANZ) recently surveyed 180 Australian tax experts and exposed the extent 'some Australians might stretch the truth to try to get a tax break'. CA ANZ Tax Leader Susan Franks issued a stark warning as she highlighted some of the more ridiculous claims. 'One respondent said their individual client was claiming monthly salon haircuts, on the basis that their hair grows during business hours,' Franks said. RELATED 'There were many dubious claims related to health, wellness and personal aesthetic, including one for the cost of a gym membership, as the individual needed to be strong and fit to renovate their rental property. 'Another related to a Pilates reformer machine purchased to help an office worker who had a sore back. 'We also noticed a trend of big-ticket luxury purchases passed off as business and work expenses, including one who tried to claim a family trip to a tropical island was related to their earthmoving business.' She said a luxury yacht was claimed as a work expense as 'they might have some business to do on the islands.' ATO reveals 'hit list' for 2025 More than 10 million people claimed a work-related deduction in 2024, with work-from-home (WFH) deductions one of the most popular. The ATO said it was targeting exaggerated work-related expenses, WFH deductions and multiple income sources, like side hustles. ATO Assistant Commissioner Rob Thomson said there was no way outrageous claims like a real estate agent who wanted to deduct $30,000 for veneers or a truckie putting through a pair of swimmers as he stopped at a pool near a highway would fly. 'While some people have tried their luck with unusual work-related deduction claims, most people realise to be able to claim an expense, it needs to meet strict criteria,' Thomson said. 'While a lunchtime dip might clear your head for work, swimwear for a truck driver is clearly not deductible. Assistant Commissioner Rob Thomson said the ATO is targeting incorrect work-related expenses this year. · ATO/Yahoo Finance 'We know in many instances mistakes relating to work-related expenses could be avoided with a little time and effort.'
Perth Now
07-05-2025
- Business
- Perth Now
Wildest tax-time claims revealed
As Australians gear up for tax time, an industry body has revealed some of the most outrageous deductions workers have tried to claim. Chartered Accountants Australia and New Zealand tax leader Susan Franks said a client of one tax agent had tried to claim a luxury yacht as a work expense because they needed to do business on an island. Others have tried to claim engagement rings, hair cuts due to their hair growing at work and even pilates equipment due to a sore back. 'There were many dubious claims related to health, wellness and personal aesthetic, including one for the cost of a gym membership, as the individual needed to be strong and fit to renovate their rental property,' Ms Franks said. 'Another related to a pilates reformer machine purchased to help an office worker who had a sore back.' Taxpayers have tried to claim on engagement rings and gym memberships. NewsWire/ Monique Harmer Credit: News Corp Australia Ms Franks said some Australians tried to claim big-ticket purchases through loose links to their job or business. 'We also noticed a trend of big-ticket luxury purchases passed off as business and work expenses, including one who tried to claim a family trip to a tropical island was related to their earthmoving business,' Ms Franks said. 'Another claimed a luxury yacht as a work expense – because they might have some business to do on the islands.' She said taxpayers also tried to claim vet and food bills for pets, pools and school fees. Ms Franks said despite the temptation, Aussies should only claim fair tax-related expenses. 'We understand that some Australians might be tempted to push the boundaries, but let's avoid making dubious claims this year,' she said. Meanwhile, the Australian Taxation Office said this year it was taking aim at work-related and working-from-home deductions of the nation's 15 million taxpayers. Australians are trying to pass some 'dubious' claims past the ATO. NewsWire / Nicholas Eagar Credit: NewsWire According to the tax office, more than 10 million people claimed work-related deductions, including working-from-home claims, in the last financial year, although some Australians took it a little too far. One was a mechanic claiming an air fryer, TV, gaming console and other electrical items as work expenses, while another was a fashion industry manager wrongly claiming more than $10,000 in luxury-branded personal clothing and accessories. In another case, a truck driver tried claiming swimwear used to take a dip during a stop along the highway. ATO assistant commissioner Rob Thomson reminded taxpayers that the ATO's role was to collect the correct amount of tax owed, and exaggerated deduction attempts would not be tolerated. 'While some people have tried their luck with unusual work-related deduction claims, most people realise to be able to claim an expense, it needs to meet strict criteria,' he said. 'While a lunchtime dip might clear your head for work, swimwear for a truck driver is clearly not deductible.' Mr Thomson said if your deductions didn't pass the 'pub test', it was highly unlikely your claim would meet the ATO's strict criteria. 'Don't fall into the trap of thinking you can claim expenses like travel to and from work and childcare costs,' Mr Thomson said. 'These expenses are personal in nature and cannot be claimed. When in doubt, look for guidance on the ATO website or speak with your registered tax agent.'
