The ATO has recently noticed an increase in deduction claims for dental and other personal grooming expenses. It’s a good reminder that most everyday personal-care costs are not tax deductible, even if they help you look professional for work.

What You Can’t Claim

The following are generally private expenses and not tax deductible, even if your employer expects you to maintain a certain standard of appearance or you receive an allowance to help cover these costs. Examples include:

• Dental expenses – check-ups, fillings, crowns, orthodontics and other dental treatments
• Preventative dental care – cleans, fluoride treatments, mouthguards etc
• Cosmetic procedures (including teeth whitening)
• Makeup and skincare
• Shaving products
• Haircuts and grooming

These are treated as personal living expenses, not costs of earning your income.

The Key Test: Is There A Direct Connection to Your Income?

You can only claim a deduction where there is a clear and direct link between the expense and the way you earn your income. Ask yourself:

1. Does this expense help me perform my actual work duties, not just look the part?
2. Would I still have this expense if I didn’t have this job?
3. Can I explain the connection to my work if the ATO asks?

If there is no direct connections to earning your income, the expense is private and should not be claimed.

Keep Good Records

If you are claiming work-related deductions, you should keep receipts and be able to explain how each expense relates to your employment income. Simply having a receipt is not enough – you also need to show to work connection.