What clothes do you wear to work? Are you required to wear a suit or a specific type of uniform to work? It would be imperative to confirm your dress code with the employer as there are relevant tax deductions that you can enjoy. There are many tax deductions that you can claim for work-related clothing. However, there are some rules that need to be followed such that you will make the right claims and avoid clashing with the ATO. Here is a guide that will make it easier for you to know the right claims that work for you.
In most cases, the most common deductions that you can make for work clothing are the cleaning and buying costs. Some of the clothing items which are tax-deductible include:
- Branded uniform
- Protective clothing
- Clothes specific to your profession
- Non-slip nurse shoes
- Rubber boots
- Sun protection clothing
- Fire-resistant clothing
- Smocks and aprons
As for the protective clothing, these should be items that provide actual protection against various risks while at work.
What Tax Deductions Cannot Be Claimed for Work Clothing?
The work clothing tax deductions have specific rules that you have to follow. It is important to note that these are specific items that can be used for your occupation only. For regular clothes that can be worn outside work, you cannot make claims for tax deductions. This means that regular clothing like suits, jeans, t-shirts, socks, and shoes are not considered to be work clothing or protective wear. Some may try to argue that closed shoes offer some level of protection. However, unless it is protective in terms of specific risks, this does not qualify for tax deductions.
Tax Deductions for Work Uniforms
Do you have a compulsory uniform that you are required to wear to work? According to the ATO, compulsory uniforms are the ones that identify you as a worker for a specific organization. You are expected to wear such clothes when you are at work and it is mandatory. The cost of getting the uniforms is deductible. There are occupations that have specific uniforms for workers like airline staff, nurses, police officers, and supermarket staff among others.
However, there are also uniforms that are not compulsory but the company requires you to wear them. If the clothes are specifically designed for the company and have distinctive features, you can claim the costs. These are clothes that are not accessible to the public for purchase and use.
Laundry Cleaning Deductions for Work Clothing
You are also eligible to make tax deductions for the costs of washing, drying, and ironing work clothes. Written proof of the washing expenses is required for claims that are more than $150. You do not have to wash and iron your work clothes yourself as the ATO has provided some guidelines on the amounts to use. You can make claims of $1 per load of work clothing only. However, if there are other clothes that are included in the load, the claim will be 50c per load.
There are so many other deductions for work clothing that you can claim. However, the most important thing is to ensure that you have proper records and you are making the right claims. If you are not sure of the right claims to make, you should consult an expert for the same.
Get in Touch
If you are having trouble making claims for work clothing tax deductions, we can help you out. At Accurate Business & Accounting Services we will work closely with you and ensure that your tax return is lodged in the right manner. Talk to us for professional assistance.