Certain types of clothing are tax deductible. But you must follow the strict guidelines of the Australian Tax Office (ATO). You cannot claim the cost or upkeep of conventional clothing worn to work. What you can claim is the cost of clothing specific to your occupation, a compulsory or non-compulsory company uniform you pay for and protective clothing.
What you cannot claim
You cannot claim a tax deduction for conventional clothing you buy to wear only to work or if your employer says you have to wear certain clothing to uphold the company image.
Everyday clothing people wear to work is generally referred to as conventional clothing. For example, neat casual, business clothes or black pants and a white shirt worn by waiters or active wear that personal trainers wear. While it may seem that the cost of clothing you wear to work is a business expense, conventional clothing is a private expense as you can wear it outside the work environment.
Clothing specific to your occupation
You can claim the cost of clothes that are specific to your occupation. This can include the uniforms of health workers and a chef’s whites, checkered pants and hat, and a judge’s robe.
Compulsory work uniforms
Compulsory work uniforms and the costs to keep them clean are tax deductible. Compulsory uniforms are clothes that specifically identify you as an employee of a particular organisation. And it is compulsory to wear the uniform in accordance with company workplace policies.
In some circumstances you can also claim the cost of socks, stockings and shoes when:
· They make up an essential part of a uniform such as a nurse’s blue uniform, non-slip shoes and stockings.
· The type, style and colour are part of the compulsory unform and specified in the policy, for example, air hostesses.
You can also claim a single piece of clothing, such as a vest, as long as it is part of the clothing policy, is designed and made for your employer, and identifies the company with a logo permanently attached.
Claiming for non-compulsory uniforms
The only way you can claim non-compulsory uniforms is if your company registers the design on the Register of Approved Occupational Clothing. This must be the uniform you wear to work. This means that socks, shoes, stockings cannot be a part of a non-compulsory uniform. A single clothing item cannot be either unless it is overalls or a dress.
Protective clothing claims
Protective clothing is tax deductible. This includes footwear and clothing that protects you from injury or illness while at work.
Items that are tax deductible include:
· Gloves
· Steel capped and rubber boots
· Hi Viz vests
· Wet weather gear
· Clothing that is fire resistant
· Heavy duty pants and shirts
· Non-slip nurse’s shoes
· Clothing with a UPF sun protection rating
· Aprons or smocks, or overalls or boilersuits used to protect ordinary clothing.
Laundry and repair expenses
You can claim a deduction to wash, dry clean or repair clothing that is deductible. The ATO allows you to claim $1 a load if it only contains works clothes or $0.50 a load if the load has both work and personal clothes.
If your employer pays an allowance to look after your work clothes:
· You must include it in your taxable income on your tax return.
· You can only claim a deduction for what you actually spent.
Keeping records
It is important to prove what you spend to buy, wash or repair work clothes. You can do this by keeping receipts or diary entries when you wash work clothes at home.