Can the cost of clothing be tax deductible?
Sometimes it can be, but only in limited circumstances.
The tax deductibility of expenditure on clothing is subject to strict ATO guidelines. These cover occupation-specific clothing, compulsory or registered non-compulsory uniforms and protective items.
Conventional clothing
What you can’t claim is the cost of conventional clothing, even where your employer expects you to observe a particular dress style. You might work in an office environment, and your employer expects you to wear a business suit to work, even though you wouldn’t have even bought the suit but for your employer’s dress requirements. While the cost of the suit might seem like a work related expense, it is not deductible as it is conventional clothing that could also be worn outside of work. This makes it a private expense, even though it relates directly to your employment.
Conventional clothing includes business attire, non-monogrammed black trousers and white shirts worn by wait staff, non-protective jeans and drill shirts worn by tradies and athletic clothes and shoes worn by PE teachers.
Occupation-specific clothing
On the other hand, occupation-specific clothing falls on the deductible side of the line, for example a chef’s distinctive chequered pants or a health worker’s blue uniform, including nurses’ stockings and non-slip shoes.
Compulsory uniforms
The cost of clothing that forms part of a compulsory uniform is generally deductible. A compulsory uniform is a set of clothing that identifies you as an employee of a particular organisation. Your employer must make it compulsory to wear the uniform and have a strictly enforced workplace policy in place.
You can only claim a deduction for shoes, socks and stockings if:
- They are an essential part of a distinctive compulsory uniform, and
- The characteristics (the colour, style and type) are an integral and distinctive part of your uniform that your employer specifies in the uniform policy, for example, airline cabin crew members.
You can claim for a single item of clothing such as a jumper if it's distinctive and compulsory for you to wear it at work. An item of clothing is unique and distinctive if it:
- Has been designed and made only for the employer, and
- Has the employer's logo permanently attached and is not available to the public.
Just wearing a jumper of a particular colour is not part of a compulsory uniform, even if your employer requires you to wear it, or you pin a badge to it.
Non-compulsory uniforms
You can only claim for non-compulsory work uniforms if your employer has registered the design with AusIndustry. This means the uniform has to be on the Register of Approved Occupational Clothing. Your employer will be able to clarify whether your uniform is registered.
Protective clothing
The cost of protective clothing is deductible, and covers such items as:
- Fire-resistant clothing
- Sun protection clothing with a UPF sun protection rating
- Hi-viz vests
- Non-slip nurse’s shoes
- Protective boots, such as steel-capped boots or rubber boots for concreters
- Gloves and heavy-duty shirts and trousers
- Occupational heavy duty wet-weather gear
- Boiler suits, overalls, smocks or aprons you wear to avoid damaging or soiling your ordinary clothes during your work activities.
Laundry and dry-cleaning costs and repairs
You are entitled to a deduction for the cost of cleaning your deductible clothing. If you launder them at home, the Tax Office will allow you a deduction of $1 per load where the load contains only deductible clothing, or 50 cents per load where deductible clothing is mixed with other items.
You are entitled to claim the cost of dry-cleaning deductible clothing, as well as the cost of mending and repairs.
Record keeping
You should keep receipts or other documentary evidence of your expenditure on buying, laundering or repairing deductible work clothing. Proof of laundering clothing at home can be in the form of diary entries.
Allowances
If your employer pays you a clothing allowance, this needs to be included in your assessable income, and you can only claim what you have actually spent.
Feel free to come and see us for advice as to whether your expenditure on work clothing is deductible.
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