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ATO Holds Nice Smile Not Essential to Finding a Job — Orbitax Tax News & Alerts

The Australian Taxation Office (ATO) has published some of the most outrageous claims that they disallowed last year, including the disallowance of a deduction for dental expenses by individuals believing that a nice smile was essential to finding a job, and therefore the expenses should be deductible. The top 5 claims are as follows:

Top 5 most outrageous claims

1. Lego sets

One taxpayer claimed the cost of the children's Lego kits purchased throughout the year. Others claimed for sporting equipment of membership fees for their child athletes.

We disallowed these claims in full.

2. Vehicles

Many taxpayers tried to claim the purchase of a brand-new car. These claims, in excess of $20,000 each, were disallowed as purchasing a private vehicle is not an allowable deduction.

One particularly charitable taxpayer tried to claim for a car purchased as a gift for their mother. While the ATO appreciated the sentiment, unfortunately, we were required to disallow the claim.

3. Cost of raising Children or child support

One taxpayer made a claim for 'the cost of raising twins', while another claimed for the 'cost of raising three children'.

One taxpayer was obviously shocked at the cost of having children, simply stating 'Newborn baby expensive' when making their claim.

Other taxpayers claimed school uniforms, before school care, and school fees and expenses.

We explained to these taxpayers that these are unacceptable deductions and disallowed these claims in full.

4. Medical expenses

Many taxpayers used 'other deductions' to make claims for dental or medical care.

Unfortunately, these expenses are not a deduction as they are a private expense. We disallowed these claims in full.

5. Wedding reception

One taxpayer decided to claim the cost of their wedding reception.

We disallowed the claim in full.