Clothing & Laundry Deductions – What qualifies?
The ATO will allow taxpayers to claim a deduction for the cost of buying and cleaning occupation-specific clothing, protective garments & items, and unique or distinctive uniforms.
To claim a deduction it is generally expected that you will be able to provide evidence that they purchased the clothing concerned and have records or evidence of cleaning costs.
Occupation-specific clothing
You can claim for clothing that is specific to your occupation and not everyday wear in nature. Generally, this sort of clothing also allows the public to easily recognise your occupation — such as the checked pants a chef wears.
But the ATO will resist allowing claims made for the cost of purchasing or cleaning clothes you bought to wear for work but that are not specific to your occupation — for example, the black trousers and white shirt generally preferred by waiters or bartenders, or an office worker’s suit and tie.
Protective clothing
You can claim for clothing and footwear that you wear to protect yourself from the risk of illness or injury that may arise from your income-earning activities, or from the environment in which you are required to carry out these activities.
To be considered “protective”, the items must provide a sufficient degree of protection against that risk. Protective clothing includes:
fire-resistant and sun-protection clothing
high-visibility vests
non-slip nurse’s shoes
rubber boots for concreters
steel-capped boots, gloves, overalls, and heavy-duty shirts and trousers
overalls, smocks and aprons you wear to avoid damage or soiling to your ordinary clothes during your income-earning activities.
Ordinary clothes (such as jeans, drill shirts, work shorts, trousers, socks, closed shoes) are not regarded as protective clothing if they lack protective qualities designed for the risks of your work.
The ATO generally disallows claims for the cost of purchasing or cleaning ordinary clothes that you wear for work that may also serve to protect the wearer. For example, you can’t claim for normal, closed shoes, even though by wearing them you will protect your toes and feet.
Work uniforms
Generally, you can make a claim for a uniform (either compulsory or non-compulsory) that is unique and distinctive to the organisation you work for.
Clothing is unique if it has been designed and made specifically for an employer. Clothing is considered distinctive if it has the employer’s logo permanently attached and items are not available to the public.
Compulsory work uniform
A compulsory work wear is a set of clothing that identifies you as an employee of an organisation with a strictly enforced policy that makes it compulsory for you to wear the uniform while you’re at work.
You may also be able to claim a deduction for shoes, socks and stockings where they are an essential part of a distinctive compulsory uniform and where their characteristics (colour, style and type) are specified in your employer’s uniform policy.
Non-compulsory work uniform
You can’t claim expenses incurred for non-compulsory work uniforms unless your employer has registered the design with AusIndustry. Shoes, socks and stockings don’t form part of a non-compulsory work uniform.
Laundering of work clothing
You can claim the costs of washing, drying and ironing eligible work clothes, or having them dry-cleaned. It will be expected however for you to have written evidence, such as diary entries and receipts, for your laundry expenses if both:
the amount of your claim is greater than $150, and
your total claim for work-related expenses exceeds $300.
If the amount seeking to be claimed is less than the above, and you don’t need to provide written evidence for your laundry expenses, you may use a reasonable basis to work out your claim.
For washing, drying and ironing you do yourself, the ATO considers that a reasonable basis for working out your laundry claim is:
$1 per load (this includes washing, drying and ironing) if the load is made up only of work-related clothing, and
50 cents per load if other laundry items are included.
Dry-cleaning expenses
You can claim the cost of dry-cleaning work-related clothing. If your total claim for work-related expenses exceeds $300 (not including car, meal allowance, award transport payments allowance and travel allowance expenses), you must have written evidence to substantiate your claim.
Need Cordner Advisory to help?
If you would like more information or need any assistance regarding the above, please do not hesitate to contact us on (07) 5504 5700 to speak to one of our trusted advisors today.
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