There is a stigma that has attached itself to women’s handbags; they contain one’s makeup, nail file, purse and possibly some chocolate. Not anymore!
In contemporary society, women are now using their handbags for work-related reasons whether they are carrying electronic devices such as a laptop, or files and paper to write on. It is for this reason that the Australian Tax Office (ATO) has agreed that a woman’s handbag can be tax deductible.
But there is a catch!
In order to claim your handbag as a work expense, it could be necessary to keep a logbook proving that the bag was used for carrying more than just personal items. In this way, it is hard for anyone to argue that, despite the description, it is different to the purpose served by a man’s briefcase or satchel.
The Financial Review engaged in this issue by writing that, traditionally, the ATO has stated,
‘the purchase of a handbag has the hallmarks of a private expense, as a handbag is used for carrying personal items. That is, handbags are not bought to be use for work purposes and are not used for work purposes and therefore are not deductible.’
However, as has been recognised by Workplace Gender Equality Agency director Libby Lyons, this viewpoint does not take into account that the workplace also accommodates women.
Therefore the ATO has agreed that a handbag could be tax deductible should there be proof that it is used for work purposes, taking into account the cost of the item, the size and the profession of the claimant.
If the item is less than $300, there is a significant chance that the full amount can be claimed back. However, if the cost is over $300, the ATO will depreciate the item. Further, if the item has been bought in March or earlier, there is a greater possibility of the ATO accepting your claim due to the evidence provided by a logbook. Thus, shop with caution closer to June to make the end of year tax claims.
Ladies, if you do own a handbag you carry predominately for work purposes, now might be the time to start logging down the items you carry each day so that the bag you do cart to and from work five days a week weighs just a little less around June.