According to the Australian Taxation Office (ATO), you generally can’t claim a deduction for the cost of buying or maintaining watches or timepieces, even if you require one as part of your job. This is considered a private expense. However, there are some exceptions to this rule. If your watch has special characteristics that you use for a work-related purpose, you may be able to claim a deduction for the cost of the watch. For example, a nurse can claim the cost of their fob watch.
For instance, let’s say Alastair is a nurse. When he started working in a hospital, he bought a nurses’ fob watch for $150 that he only wears during work hours. Alastair can’t wear a normal wristwatch for hygiene reasons. In this case, Alastair can claim a deduction for the expense.
It is important to note that falsely claiming watches as a tax deduction is illegal and can result in penalties. The ATO has systems in place to detect false claims and may audit your tax return if they suspect that you have made a false claim.
Whether or not you can claim your watch that you wear to work as a tax deduction depends on whether the watch has special characteristics that you use for a work-related purpose. Falsely claiming watches as a tax deduction is illegal and can result in penalties.