Turns Out You Can Claim Tax on Your Handbag

The Australian Taxation Office has back flipped on recent comments that handbags are not tax deductible.

The story of the handbag Vs. the man-bag caused quite the stir after it revealed briefcases and male-friendly bag designs could be claimed as a work expense, while handbags of the same function could not. 

Fortunately, the ATO has now said it will accept handbags as tax deductible! 

"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," Assistant Tax Commissioner Graham Whyte told Financy.

But before you rush out to buy that new Hermes, you may want to read between the lines.

Ladies, you will still have to prove your work bag is used primarily for work.

Paul Brassil from PriceWaterhouseCoopers suggests women should keep a log book for a minimum of three months, just in case she finds herself the focus of a tax audit some time in the future.

Nevertheless, the ATO concedes "it is the use of the item rather than its description that is relevant." Precisely! 


Want more? We thought you might like this video.


Sign Out

Join the Conversation

Please note, LifeStyle cannot respond to all comments posted in our comments feed. If you have a comment or query you would like LifeStyle to respond to, please use our feedback form.