What Work-Related Clothing Expenses Is The ATO Going To Allow?
What you wear to work won’t generally make the cut, there has to be something that sets it apart from the norm:
· Protective clothing (i.e. not everyday wear)
· Clothing that easily identifies your occupation, like checked chef trousers
· Distinctive uniforms
· Clothing and footwear that you wear to protect yourself from the risk of illness or injury posed by your job or the environment in which you do your job. To be considered protective, the items must provide a sufficient degree of protection against that risk, and might include:
Fire-resistant and sun-protection clothing (including sunglasses)
Hi-vis vests
Non-slip nurse's shoes
Rubber boots for concreters
Steel-capped boots, gloves, overalls, and heavy-duty shirts and trousers
Overalls, smocks, lab coats, and aprons you wear to avoid damage or soiling to your ordinary clothes whilst at work.
What Clothing Deductions Are Not Claimable?
Only items that are specific to a particular occupation – and cannot be worn outside of that workplace – can be claimed as work clothing. This means:
· · You can’t claim the cost of purchasing or cleaning items such as a bar tender’s black and white trousers or the cost of business suits or office attire (unless the items are part of a compulsory or non-compulsory uniform). These items are suitable for normal wear.
· If you work in a clothing store, you also can’t claim the cost of the clothing you purchased in that store, even if you’re required to wear it to work, as those items of clothing are not specific to your occupation (you could also wear them outside work).
Ordinary clothes (such as jeans, shirts, shorts, trousers, socks, and closed shoes) are not regarded as ‘protective clothing’ if they lack protective qualities designed for the risks of your work.
For example, it could be argued that closed-in shoes provide a level of protection for your feet from workplace hazards, but unless that protection is something specific, over and above a general level of foot protection, you’re unable to claim a deduction, the same goes for runners, even if you’re on your feet all day or work as a personal trainer.
Claiming The Cost Of Work Uniforms
Compulsory work uniform
This is defined as a uniform that identifies you as an employee of an organization. The uniform must be compulsory to wear while you’re at work with a strictly enforced uniform policy. If this is true of your uniform, the cost is deductible. Typical occupations where a compulsory uniform is required include police officers, nurses, military personnel, airline staff, and supermarket staff.
Shoes, socks, and stockings might also be claimed as a deduction if they are an essential part of a distinctive compulsory uniform. Their colour, style, and type must be specified in your employer’s uniform policy, as is sometimes the case with air stewardesses and nurses. It might also be possible to claim for a single item of distinctive clothing, such as a jumper if it’s compulsory to wear to work.
Non-compulsory work uniform
In some instances, you can claim for a non-compulsory uniform if it is unique and distinctive to your organisation. Clothing is considered unique if it has been designed and made solely for your employer. Distinctive clothing must have your employer’s logo permanently attached and not be available for public purchase.
You can’t claim the cost of purchasing or cleaning a plain, logo-free uniform, such as the generic white shirts or black trousers worn by wait staff. Non-compulsory work uniforms are usually required to have a design registered with AusIndustry in order to be tax deductible. Shoes, socks, and stockings aren’t considered part of a non-compulsory work uniform and neither is a single item such as a jumper.
To get a copy of our Financial Utilities deduction list to assist you with work-related clothing expenses and other deductions on your tax return, get in touch with us today.
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