Five wild tax deductions you didn't know about

Who said tax time is boring?

Aussies might have tried to claim some dodgy tax deductions in the past: luxury yachts, haircuts and island holidays.

But here are five perfectly legitimate, and slightly offbeat, tax deductions.

1. Laundering workwear

If you are required to wear a compulsory uniform or protective clothing at work, you can claim the costs to launder, dry clean or repair the clothing.

No point investing in fancy detergents.

The Australian Taxation Office (ATO) says a reasonable basis for working out your laundry claim is:

• $1 per load if it only contains work clothing, or
• 50c per load if you mix work and personal items of clothing.

You need evidence, such as diary entries and receipts, if your total claim for work-related expenses is more than $300 and you're claiming over $150 for laundry expenses.

2. COVID tests

The worst of the pandemic may be behind us, but the cost of COVID tests can still be tax deductible.

Employees, sole traders and contractors who need a COVID-free result to front up to work may be able to claim the cost of test kits as long as the boss hasn't already forked out for them.

3. A dog

Chihuahua power can be a mighty force.

But not at tax time.

You may be able to claim the cost of a dog if you work as a security guard though not if Fido is the family pooch.

On the other hand, farmers may be entitled to claim costs like food and vet bills for a working dog (and even a working horse).

Trying to claim the cost of a guard dog when you work from home - an idea being spruiked on social media, is "simply absurd" says CPA Australia Tax Lead, Jenny Wong.

4. A caravan

It may be possible to claim a caravan as a tax deduction.

This may apply if you travel extensively for work, and use your caravan for overnight accommodation, rather than paying for a hotel.

Caravan costs may also be tax deductible if you rent out your van through short term rental sites like Camplify.

Keep good records - the ATO will want to see a clear distinction between private and work-related or income-generating costs.

5. Garden gnomes  

Gnomes aren't everyone's cup of tea.

Even so, property investors may be able to claim the cost of garden gnomes and even cubby houses as plant and equipment for a rental property.

Apps to make your tax return easier

Maximising tax refunds becomes a national sport at this time of year, but it doesn't have to mean poring over paperwork while burning the midnight oil.

The ATO accepts records in either paper or electronic format, including photos of written evidence.

This has paved the way for apps to streamline tax time. Here are two worth a look.

The ATO app
Cost: Free

App availability and rating: iOS (4.8) and Android (3.4)

The ATO app includes a myDeductions tool allowing users to record expenses, including by taking photos of receipts, which can be uploaded to your tax agent.

Make the most of the app features by linking the app to your myGov account and the ATO.

ReceiptHub
Cost: Free

App availability and rating: iOS (4.5)and Android (4.1)

This app, produced by H&R Block, lets workers snap a photo of receipts. View all your receipts in one place, organised by month, and select or add a new category for each receipt.

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