The ATO has been seeing a number of deduction claims for dental expenses this tax time. Dental expenses are private expenses, including preventative and necessary dental treatment, medical expenses and other costs relating to client’s personal appearance (such as teeth whitening, makeup, skin care, shaving products and haircuts) are not deductible.
These expenses are generally private expenses, even if an employer expects an employee to maintain a certain appearance, or pays them an allowance to cover grooming expenses.
Taxpayers should remember that they can only claim an expense that directly relates to earning their income. Private expenses cannot be claimed as a deduction.
Taxpayers should have written evidence of all their expenses, and be able to show a direct connection with those expenses to their employment income.
For personalised guidance on year‑end entertainment and gifting rules, please contact Taxwise Australia and review practitioner registration details via the Tax Practitioners Board.
