ATO reminds taxpayers: Dental and grooming costs are private, not deductible
The ATO has been seeing a number of deduction claims for dental expenses at tax time.
Dental expenses — including preventative and necessary dental treatment, medical expenses and other costs relating to a 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 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 between those expenses and their employment income.
Unsure whether an expense is deductible? Contact the Omnis tax team before you lodge to avoid mistakes and ATO penalties.
