The little-known Australian ‘tax hack’ women are obsessed with: ‘I had no idea I could claim this’

Aussies have discovered a surprising item they can claim on their tax return this year – and it’s something thousands use every day.

Finance content creators Sal and Al, who go by Two Broke Chicks on TikTok, revealed handbags ($300 and under) can be claimed as a tax deduction in many cases.

‘You can actually claim the cost of a handbag, however it must be used and suitable for work purposes,’ the pair said, adding that ‘your tiny little Jacquemus ain’t going to cut it’.

‘A more modest bag used for work can qualify for a deduction… this is your sign to treat yourself to a new work handbag if you need it.’

And it seems many are, with fashion label Alf The Label confirming bags fly off the shelves this time of year.  

Louis Vuitton’s Atlantis BB bag would be an unlikely candidate for a refund costing $4,400 with a small, chic design that wouldn’t be practical enough to use for work only

‘We have lots of girlies buying right before tax time,’ they said, before cautioning shoppers to ensure that the order confirmation has the required tax info on it. 

To be claimed, the bag must be used for work, and ‘only for work purposes’. 

Bags used to transport personal items such as lunch, gym clothes or makeup are not eligible.   

Handbags have more stringent ATO criteria to meet than briefcases, laptop bags, satchels and luggage.  If your handbag passes the test and is under $300, then you are eligible for an immediate deduction.

If the bag is over $300 then you can only claim a deduction for the decline in value over the effective life of the item.

However, finance expert Molly Benjamin, founder of Ladies Finance Club, warns Aussies not to get too confident with claiming their handbags. 

‘I wish I could claim a handbag on my tax expenses, but alas, no luck there,’ she told FEMAIL.

‘However, if it’s a laptop bag that’s strictly for work purposes and can’t be used for private use, then you’re in the clear. I mean, who wouldn’t want to claim their corporate workwear, right but it’s the same story. 

‘Unless it’s branded with a logo or uniquely required for your job (think chef’s hat and checkered pants), the ATO is not going to let that one slide!’

Ms Benjamin advised to ‘use discretion’ and be aware that you will in fact be ‘taking a bit of a gamble if you go ahead and claim it’.

‘Stick with those logo-branded or uniquely job-specific items to stay on the safe side – and I don’t think attaching a logo to a Coach is going to work (again we wish)! ‘