Every year at tax time, Australians become incredibly creative.
Receipts appear from the glovebox. Credit card statements are squinted at closely. And suddenly, everyday spending is magically rebranded as a “tax deduction”.
While it’s great to be organised and claim what you’re entitled to, there are some deductions the Australian Taxation Office (ATO) sees again and again — and almost all of them get knocked back.
Here are some of the most common (and surprisingly silly) claims people try to sneak into their personal tax returns.
❌ “I work from home, so my rent must be deductible… right?”
Not quite.
Unless you run a genuine business from home with a clearly defined workspace used exclusively for work, you generally cannot claim rent or mortgage interest.
Working from the kitchen table or spare bedroom a few days a week doesn’t make your home a tax deduction.
You may be able to claim limited work-from-home running costs (like electricity or internet), but the house itself is off limits.
❌ Everyday clothes labelled as “workwear”
One of the most common rejected claims.
Suits, dresses, jeans, shoes, activewear — even if you only wear them to work — are not deductible.
Unless the clothing is:
- a compulsory uniform
- protective gear
- occupation-specific (like a chef’s jacket or steel-cap boots)
…it’s considered normal clothing. The ATO’s view is simple: you’d still need clothes even if you didn’t have a job.
❌ “My car is basically a work vehicle”
Many people try to claim 100% of their car costs, including fuel, servicing, insurance and even car washes.
The problem? Driving to and from work is private travel, not work-related.
Only work-related trips (like travelling between job sites) are deductible — and even then, logbooks and records matter. Guessing or rounding up numbers is a fast track to an ATO adjustment.
❌ Gym memberships, yoga classes and personal trainers
This one pops up a lot.
Unless fitness is a direct requirement of your job, gym memberships are personal expenses — even if staying fit helps you “do your job better”.
The ATO doesn’t allow deductions just because something is “good for work”.
❌ Netflix, Spotify and Foxtel “for research”
Yes, people try this.
Streaming services are considered entertainment. Claiming them as “education” or “industry research” almost never stacks up.
The ATO knows the difference between professional development and binge-watching.
❌ Family dinners labelled as “client meetings”
Meals with family or friends don’t become deductible just because work was mentioned over dinner.
Unless it’s a genuine business meeting with a clear work purpose, meals are private. Adding a work label doesn’t change that.
The Bottom Line
The ATO isn’t trying to be difficult — they just want deductions to be:
- directly related to earning income
- properly documented
- genuinely work-related
If a claim feels like a stretch, it probably is.
A good rule of thumb?
If you’d still spend the money even if you didn’t have a job, it’s probably not deductible.
📣 Need help getting it right?
If you’re unsure what you can and can’t claim, or you want peace of mind before lodging your tax return, reach out to our team.
A quick conversation now can help you:
- avoid costly ATO adjustments
- claim what you’re legitimately entitled to
- sleep better knowing your tax return stacks up
We’re here to help — not just at tax time, but all year round.