Handbags used for work purposes have been confirmed as an item that can be claimed as a tax deduction.
The news comes after the Australian Financial Review exposed handbags as being not tax-deductible as they were considered ‘hallmarks of private expense’.
But in a world where ‘handbags’ are often large enough to carry laptops and other business equipment, the confirmation really just confirms our suspicions that our bags have been unfairly exempt.
Assistant Tax Commissioner Graham Whyte told Financy.com.au there exists the opportunity for claims to be made on handbags.
“You can claim a deduction for assets that are predominantly used for work purposes, such as bags and satchels used to carry work papers or electronic devices, to the extent that such items are used for work purposes,” he said.
Work purposes are however, difficult to prove outright.
PricewaterhouseCoopers private clients partner Paul Brassil encourages women to keep at records of what they are placing in their bags.
“Fundamentally if you are carrying work items to and from work, be that a laptop, work papers and minor personal items, then you are in a position to claim a reasonable deduction for the cost of a handbag or manbag,” he told Financy.com.au.
Brassil also warns against purchasing particularly expensive bags as this may be seen as an unnecessary private expense.
“If you have an ultra-expensive item then you are very likely to get a challenge from the Australian Tax Office (ATO) if you make a claim,” he said.
Whitehead Dingley & Betar chartered accountant and partner Kate Hills spoke to Financy.com.au about how she currently claims a tax deduction for her work handbag.
“I find it hard to see how the two situations are different for a man and woman. The only difference I see is that one bag is called a ‘handbag’ and the other a ‘satchel/briefcase’,” she said.
The confirmation may be in but before you rush off with fistfuls of plastic, platinum or cash, just be aware that no claim is guaranteed.
Click below to see some of our favourite (but perhaps not tax-deductibe) bags in the Mamamia office:
Top Comments
Well, women pay so little tax anyway. First the workforce is 55/45 male to female. Then men work more overtime and take fewer breaks in their careers, even before adding motherhood. Then on average men earn about 15% more than women because they take higher paid, more demanding or more dangerous jobs. Not only do they pay more tax on that extra 15%, but are more likely to be in a higher tax bracket. Finally men work more full time jobs. Add it all up and the tax split is roughly 70/30 male to female.
On the spending side, women get more of the taxes back, family payments and pensions. Women live 6 years longer so the aged pension and healthcare also is higher for them. Additionally there are women only programs and their own ministry.
So, hooray, another win for equality.
And you, sir, are what is wrong with the world. Not wanting women to claim tax deductions on a bag that is the female version of a briefcase, because you have some misoginistic views about how the world works? How petty are you?!
Not to mention, clearly out of touch. Men work more overtime, higher demanding jobs? In law alone the majority of graduates are female. This isn't reflected at the upper levels because ... Boys club. But who works the long hours in a law firm? Not the partners that's for sure, it's the more junior lawyers.. Made up of mostly women. So before you start whinging about a, let's be frank, minor win for women, why don't you just take a moment to get your facts straight.
Firstly, family payments are for families. As in you know, FAMILIES
Secondly, taking a 'break' to be a primary care is something men can do also, however it isn't a break, it's full time child care which would otherwise be very expensive. Someone has to care or the children.
Thirdly, boy did your parents do a job on you! Or your ex did. Or perhaps both? You sound very bitter.
You must be fun at parties...
Just putting out the facts. Facts you haven't rebutted. The only one getting Snarky and personal seems to be you.