What you CAN'T claim

Driver's licence |  Vaccinations |  Child minding expenses |  Commuting to and from work |  Grooming costs |  Relocation expenses made by an employee |  Police clearance and record checks |  Telephone 'silent number' fee |  Eviction of a tenant |  Meal costs |  The cost of buying your own business |  Volunteer work

Everyone would like to know about extra tax deductions, especially those deft and nifty deductions you may not have thought of before. But in the interests of saving you time and effort, here are some tax deduction 'could-be's that are not generally allowed as a matter of course – just so you know that you will have an uphill battle trying to claim them.

These are listed here merely as tax deductions that may be commonly thought of as claimable, but that are usually knocked back. While some may appear obviously not allowable ('tell him he's dreaming') they have all been genuinely attempted to be claimed as tax deductions by Australian taxpayers. However other claims may surprise as not being allowed by the Tax Office.

The following are by no means off the agenda completely. Having a solid case (a 'reasonably arguable position' in Tax Office parlance) could help, but in the first instance, or as a status of 'general non-deductibility' from a Tax Office point of view, the following expenses are off the menu. Taxpayers who still believe they have a case should consult a tax professional. (Where a reference to the Tax Office's legal database is available, a link will be provided.)

Driver's licence
Vehicle expenses incurred during the normal course of earning assessable income are allowable deductions – items include repairs, tyres, servicing, interest on a car loan and even washing the car in some cases. But the cost of a driver's licence is not an allowable deduction – even if the holding of the licence is a condition of employment. But any extra on the cost of a 'standard' licence could be allowable (taxation determination TD 93/108). Note also that the costs of defending a driving charge, even where the taxpayer's job is conditional on holding a driver's licence, are not deductible.

Vaccinations
A tax deduction is generally not allowable to cover the cost of being vaccinated against diseases that may be contracted or that an employee may come into contact with during the course of income-producing activities, for example airline employees (taxation ruling TR 95/19). Some disease protection however, for example for cattle-borne Q fever, may be allowed.

Child minding expenses
An employee's expenses incurred from having someone else care for children during working hours are not deductible (including one instance where child care was needed to enable one taxpayer to gain tertiary qualifications that were instrumental to job advancement). There is however a child care rebate that you may be able to claim, as well as the child care benefit.

Commuting to and from work
The costs of travelling between home and the place of employment is not generally deductible, even where incidental tasks are performed on the way. Certain circumstances may see a deduction allowed, such as where a worker may need to carry heavy or bulky equipment to work – however no such allowance is made if there is secure storage provided at the workplace and carrying tools, for example, is done merely for convenience and not for reasons of practicality.

Grooming costs
Even though an employee may be required to maintain a high standard of appearance for their job, expenses such as hairdressing or cosmetics are still not usually deductible. Not even Defence Force personnel get a tax deduction for grooming, even though the expense is incurred in order to meet military regulations. Performing artists get a deduction for make-up costs and some consideration for hairdressing if directly related to a performance (but not television newsreaders). Anyone constantly exposed to chlorinated water (such as a hydrotherapy assistant) could have a case for claiming moisturisers and conditioners.

Relocation expenses made by an employee
Any expense incurred by an employee in getting a job or in changing employment, such as the costs of moving house or expenses involved with meeting an employment agreement, are not generally deductible. The reason the Tax Office gives in these cases is that the expense concerned comes 'at a point too soon' to be regarded as having been incurred in gaining assessable income. The same reason has been given in the past to deny taxpayers on unemployment benefits a tax deduction for expenses made, such as relocation, to secure a job.

Police clearance and record checks
Any expenditure that is required as a prerequisite to securing particular employment, such as a police clearance certificate or police record check, is not deductible. The reason given here is much the same as the above instance, that these costs are made 'at a point too soon'.

Telephone 'silent number' fee
While the work-related portion of telephone costs can be deductible in many instances, the cost of maintaining a 'silent' number for privacy (for example, to protect a police officer's home and family members) is not allowed as a deduction, as it is considered a private expense (taxation determination TD93/115).

Eviction of a tenant
Expenses incurred by a rental property owner in raising eviction proceedings against a tenant whose term has expired or who has defaulted on rental payments is not generally allowed as a tax deduction to the property owner.

Meal costs
In general terms, the cost of a meal is not deductible as it is a private expense. Meals consumed by truck drivers in the normal course of a working day, for example, have been denied as not having sufficient connection to an income-producing activity, (even though the drivers had no award or overtime meal allowances). But there are provisions to allow such a deduction if it can be shown that it is an expense that is essentially tied to employment, such as when away from home for a job, or for work-related entertainment.

The cost of buying your own business
Expenses associated with buying or establishing a business are generally regarded as having been made (here it is again) 'at a point too soon' to be connected to generating assessable income from carrying on the business. In the same way, preliminary expenditure, for feasibility studies for example, cannot be claimed as tax deductions. Expenses incurred in the very early period of the existence of the business however, even before any income starts to be realised, may be deductible if these costs are of a usual kind made with that type of business.

Volunteer work
No deduction is available to cover expenditure made while volunteering for a charity or other not-for-profit organisation.

Download and use this free PDF checklist to determine which deductions are allowable, and how they are defined and limited by the Tax Office.

Checklist of deductions

This PDF is an extraction from Taxpayers Australia's annual informative and practical Tax Summary book. The complete book is available to anyone (see here for details), and a free sample chapter is available for download.

If you are a sole trader or run your own business, check out the 'Essential tax deductions' page in our Small Business category for more allowable deduction ideas and possibilities. Click here to go there.

Last reviewed 27/07/2012