As the end of the financial year approaches, Australians are gearing up for tax season, seeking ways to enhance their refunds or reduce their tax liabilities. However, the Australian Taxation Office (ATO) has issued a stern warning against attempting to make dubious claims for cosmetic expenses, particularly makeup.
Belinda Raso, founder of Tax Invest Accounting, informed Yahoo Finance that claims for makeup and personal grooming products are severely restricted. Even if it’s a requirement of one’s profession to wear makeup, the vast majority of workers cannot claim these expenses. Raso clarified, “The only individuals allowed to claim makeup are performers, and it strictly pertains to stage makeup. Other professions are not eligible to claim this expense.”
The ATO has reiterated this stance, indicating that personal grooming products—including makeup, skincare, and hair care items—are typically considered private expenses. This rule stands firm even if an employer expects employees to uphold a specific appearance.
In addition to performers, there are a few narrow exceptions. The ATO acknowledges that some sun protection products may qualify for claims, but solely if an individual’s job necessitates extended outdoor work. Furthermore, Raso highlighted that flight attendants are permitted to claim hydrating products, as constant exposure to conditions while travelling can affect skin and hair. However, makeup still remains an ineligible expense for these professionals, despite its necessity for their role.
This tax season, the ATO is particularly focused on scrutinising work-related expenses. Rob Thomson, an assistant commissioner at the ATO, stated that any claims need to demonstrate a “close connection” to the individual’s income. Taxpayers must be prepared to substantiate their claims with appropriate evidence.
Thomson advised that if a claim fails to adhere to what he dubbed the “pub test,” it is unlikely to meet the stringent criteria set by the ATO. He stressed that many individuals incorrectly believe they can deduct costs related to their commute to work or childcare, as these expenses are inherently personal and therefore not claimable.
As taxpayers navigate their claims this year, they are encouraged to consult the ATO’s official resources or seek guidance from registered tax agents. Thomson strongly cautioned against the practice of submitting expenses in a hopeful manner, underscoring the potential for penalties and interest to be levied against those whose claims are deemed unacceptable.
In summary, for most Australian workers, especially those in non-performative roles, claiming makeup and many personal grooming items remains an uphill battle with limited allowances. Taxpayers must be vigilant in ensuring their claims are legitimate and substantiated, particularly as the ATO tightens its regulatory scrutiny this tax season.
