Australia's dodgiest tax deductions

Australia's dodgiest tax claims, the simple grocery hack saving shoppers over $1100 annually, and the company that's generated 5 million per cent returns farewells its founder. Here are five things you may have missed this week.

No...you can't claim that luxury yacht on tax

As tax time approaches, accounting body CA ANZ has revealed some of the dodgiest expenses Aussies try to claim on tax.

One worker tried to claim monthly salon haircuts on the basis that their hair grows during business hours.

Another had a go at claiming gym membership because they needed to be strong and fit to renovate their rental property.

One family tried claiming a holiday on a tropical island saying it was related to their earthmoving business.

One tax hopeful even listed their luxury yacht as a work expense - because they might do business on the islands.

Other questionable claims include vet and food bills for pet dogs to protect the taxpayer even though they work in an office.

CA ANZ Tax Leader Susan Franks says the results have uncovered the extent to which some Aussies "stretch the truth" to score a tax break.

She adds, "Some Australians might be tempted to push the boundaries, but let's avoid making dubious claims this year."

The simple grocery hack to save over $1100 each year 

Research by ING shows Australia's most frugal supermarket shoppers are saving $1159 each year simply by skipping the midweek impromptu grocery trip.

This isn't the only way Aussies are saving on groceries.

Close nine out of 10 (86%) shoppers are saving around $315 annually buying marked down groceries close to the expiry date.

One in four (25%) have changed their eating habits, for example, cutting back on meat, to save money.

And 22% are timing supermarket visits to maximise discounts, with one in five say weekday evenings are best for bargains.

The Oracle of Omaha calls it a day

The unthinkable has happened.

At the ripe old age of 94, Warren Buffet - the man who has delivered returns topping 5,500,000% to Berkshire Hathaway investors over the past 60 years, is hanging up his work boots.

Buffet will hand the reins to senior executive Greg Abel, a relative youngster at age 62.

The company's story is nothing short of remarkable.

Sixty years ago, Berkshire Hathaway was a failing textiles company.

Today, it is primarily an insurance company thanks to Buffet's sure-but-steady process of buying up stakes in other companies.

Amazingly, Berkshire Hathaway has only ever paid one dividend.

That was back in 1967.

Instead, the company has reinvested profits - a strategy that has handsomely rewarded investors.

According to Berkshire Hathaway's latest annual report, the company's shares have soared 5,502,284% since 1965, far eclipsing the S&P 500, which recorded gains (plus dividends) of 39,054% over the same period.

Today, Berkshire Hathaway shares are trading at $US778,172 ($1.2 million), making Warren Buffet, one of the world's richest people.

Hungry Jack's served a meaty fine for kids' toy

The burgers may be better at Hungry Jack's, but not so some of the toys included in its kid's meals.

Consumer watchdog, the ACCC, served up a $150,240 fine to the burger chain this week for alleged breaches of consumer law.

In May 2024, Hungry Jacks supplied 27,850 Garfield toys with its children's meals.

The toy was compliant with button battery safety standards, but consumers weren't warned the toy contained button batteries or advised about the potentially fatal hazards these batteries pose - and what to do if a child swallows one.

"Button batteries are extremely dangerous for young children and tragically, children have been seriously injured or died from swallowing or ingesting them," ACCC Deputy Chair Catriona Lowe says.

In Australia, three children have died, and more than one child every month is injured from incidents involving button batteries.

New type of home loan arrives in Australia

This week saw AMP Bank becomes the first retail bank in Australia to offer a 10-year interest-only home loan for owner-occupiers.

Unlike most long term interest-only loans, AMP borrowers can see out the full decade without having to justify interest-only payments at the five-year mark.

Unusually, the loan is pitched at pre-retirees and retirees.

Michael Christofides, director of lending and everyday banking at AMP Bank, explains, "In the past 20 years, the number of Australians aged 55 to 64 who own their homes outright has significantly decreased. Consequently, more people are carrying debt into retirement - a trend set to continue."

Christofides adds that while paying off a mortgage early is often advisable, "unlocking property equity can be beneficial, especially in the early years of retirement when many underspend out of fear of outliving their savings."

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