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Claims clothing expenses

Work Related Expenses

Claims clothing expenses:

Claims clothing expenses is a very straight forward deduction, and as such it is very easy to follow the ATO guidelines and either agree or disagree with the guidelines, so your main focus here is to follow the ATO instructions and making sure you agree with them before claiming these expenses. 

Claims clothing expenses

Any employees can claim tax deductions for the cost of clothing, if it is helping them:
Protect the employee – including protection to the feet and protecting you eyes from the sun (please see TR 2003/16).

  • Any uniform that an employee must wear. such as a uniform in a restaurant. The logic behind this is that this kind of uniforms only benefits the employer. so it would not be the first choice of the employee if he had a choice. 
  • Uniform registered by the employer with AusIndustry or the Textile, Clothing and Footwear (TCF) Corporatewear Register. related to the occupation of the employee, make sure you check on the ATO website before claiming this on your tax report.

∗ If the clothes are a deduction according to the ATO guidelines. The cost of cleaning them or making sure they are still usable will be allowed as expenses as well – it is just related expense, so it’s deductible. 

Claiming for regular clothes: in order to be able to deduct this kind of expenses (which is usually not allowed because it is of a private nature), you must agree to the guidelines in Tax Office in Ruling 97/12. 

This deduction does not need any audit trailת up to the sum of $300 for the year, and for laundry up to $150 for the year – make sure you read the substantiation law.

The ATO will allow $1 per wash if only work related clothes. or $0.5 if the wash was mixed with private clothes. (now you are getting into the gray area, where it is hard to prove unless you wash for money only your work clothes). 

If your employer pays you for your expenses, then you must check FBT law as well. (FBT covers all sort of employee rewards made by the employer that are not necessarily related 100% to work). 

There is no need to pay tax on a reimbursement of laundry up to $150 – see Administration Act 1953.