As the end of the financial year approaches in Australia, taxpayers are gearing up to maximise their refunds or minimise their tax liabilities. However, the Australian Taxation Office (ATO) is urging caution against frivolous claims, particularly for items like makeup.
Belinda Raso, founder of Tax Invest Accounting, informed Yahoo Finance that very few individuals can legitimately claim makeup or personal grooming products on their tax returns. “The only individuals permitted to make such claims are performers, and even then, it must be specific stage makeup,” Raso clarified, emphasizing the stringent requirements that limit eligibility.
The ATO has also weighed in on this matter, firmly stating, “Generally speaking, no, you cannot claim makeup.” They categorically categorise personal grooming items such as makeup, skincare, and hair care products as private expenses, even if one’s employer mandates maintaining a particular appearance.
However, exceptions do exist. The ATO acknowledged that individuals who work outdoors may claim certain sun protection products necessary for their jobs. Additionally, flight attendants are allowed to claim moisturizing products to combat the effects of dry air encountered during flights. “While they can claim hydrating items for skin and hair, makeup remains non-claimable,” Raso pointed out.
This year, the ATO is particularly focused on ensuring compliance with claims related to work expenses, including deductions for working from home and managing multiple income streams. Rob Thomson, ATO assistant commissioner, stressed the importance of demonstrating a “close connection” between claimed expenses and income generation. He further advised that deductions must withstand scrutiny—what he calls the “pub test.” Claims that do not pass this test are unlikely to satisfy the ATO’s stringent criteria.
Thomson cautioned taxpayers against the misconception that all expenses are claimable. He underscored that costs related to travel to and from work, as well as childcare expenses, are inherently personal and not eligible for tax deductions. “For those uncertain about what they can claim, it’s advisable to consult the ATO website or engage with a registered tax agent,” he suggested.
The ATO also warned that taxpayers should refrain from arbitrarily claiming deductions, as this could lead to potential penalties and interest charges. The message is clear: prudent and informed tax filing practices are essential.
In summary, while the tax season brings the opportunity for refunds, taxpayers should navigate the complexities with a clear understanding of what can and cannot be claimed. Personal grooming costs, including makeup, are largely non-claimable for the average Australian, with narrow exceptions for specific professions. To avoid issues with the ATO, consultation and due diligence are key.
