It’s that time of year again — EOFY is coming in hot, and so are some wild tax deduction attempts that have the ATO shaking its head and sharpening its pencils.
Let’s break down what’s fair game, what’s a fantasy, and how to stay in the ATO’s good books (while still claiming what you’re entitled to).
What You Can’t Claim (But Some People Really Tried…)
Think you’ve got a creative deduction idea? You might want to check yourself before the ATO does. Here are some real-life examples of what not to try:
Air Fryers & Gaming Consoles – One optimistic mechanic claimed a kitchen appliance, a TV, and a PlayStation, all in the name of work. Nice try. The ATO didn’t bite.
Swimwear for Truckies – Just because it’s hot during a delivery doesn’t mean budgie smugglers become a business expense.
Designer Wardrobes – One fashion industry manager tried to claim $10K+ in luxury brands. Unless your work uniform is Chanel (and it’s compulsory), you’re probably out of luck.
Moral of the story? If it’s personal in nature — even if you swear it makes you more productive — it’s probably not deductible.
What You Can Claim (If You’re Playing By the Rules)
Now, for the good stuff. Here’s what is allowed, provided you do it right:
Legit Business Expenses – If it directly relates to earning your income, you’re likely in the clear. Tools, software, marketing costs? All fair game. But remember: keep records and only claim the business portion.
Working From Home – Yes, you can still claim certain WFH expenses, but the ATO is watching closely for inflated deductions. Stick to the method that suits you best (fixed rate vs actual cost), and keep those logs!
Instant Asset Write-Offs – The $20,000 instant asset write-off is back for 2024/25. Got a business under $10 million turnover? You can write off eligible new or second-hand assets under $20K. And yep — it’s per asset.
Improvements on Past Purchases – Made upgrades to a previously claimed asset? If it’s under $20K and it happens this financial year, you can claim that too.
Business Isn’t Just About Tax — It’s About Building Something That Lasts
At Trinity Advisory, we’re not just here for tax time. We’re your partner in building a better business — one that’s profitable, efficient, and built to grow. Whether it’s navigating EOFY, scaling up your operations, or finally getting a handle on your numbers, we help business owners go from stressed and stuck to confident and in control.
Ready to build a smarter business, not just survive another tax season? Let’s talk.
