Tax payers seek to have as many legitimate deductions as possible. Unfortunately, though, some claims which tax payers believe are legitimate get rejected by the Tax Office. While some claims are obviously not deductible, other rejections may surprise some tax payers. The Tax Office has compiled the list below of common rejections:

1.Drivers Licence:

The cost of a standard driver’s licence is considered a private expense and as such is not claimable. This ruling applies even if your job requires you to have a driver’s licence.

2.Vaccinations:

A deduction is generally not allowable for vaccination against diseases that an employee may come into contact with in the course of work i.e. airline employees. Some disease protection, for example for cattle-borne Q fever, may be allowed (case by case determinations).

3.Child minding expenses

A deduction for child minding expenses is not deductible, even when this is necessary to secure job advancement. There is however the child care rebate and the child care benefit available through other means.

4.Commuting to and from work

Travelling between home and work is not generally deductible, even where incidental work tasks are performed on the way. Certain circumstances may allow a deduction, such as carrying bulky tools (tradies) in situations where the equipment cannot be secured or stored at the taxpayer’s place of work.

5.Grooming costs

Even though a high standard of appearance may be required at some workplaces, expenses such as hairdressing or cosmetics are not usually deductible. Not even Defence Force personnel get a deduction for grooming, even if this is to meet military regulations. Anyone constantly exposed to chlorinated water (such as a hydrotherapy assistant) could have a case for claiming moisturisers and conditioners.

6.Relocation expenses made by an employee

Expenses from changing employment, such as costs of moving house or meeting an employment agreement, are not generally deductible. The reason given is that the expense comes “at a point too soon” to be regarded as having been incurred in gaining assessable income.

7.Police clearance and record checks

Any expenditure that is required to meet prerequisites to securing particular employment, such as a police clearance certificate or record check, is not deductible. The reason given is that the expense comes “at a point too soon” to be regarded as having been incurred in gaining assessable income.

8.Meal costs

In general terms, the cost of a meal is not deductible as it is a private expense. There are some situations however, where meal costs are deductible. The taxpayer will need to demonstrate that the expenditure has a sufficient connection to their income earning activity. For example, the cost of dinner incurred by an employee who is required to travel away from home on an overnight business trip would in most instances be deductible.

For further information regarding deductions, please contact one of our friendly staff members for an obligation free consultation on (03) 9792 2772.