Deep Dive: Tax Deduction For Work Clothing

Like most people, if I have five minutes of downtime I turn to Facebook for a little light relief from the day. Recently I was scrolling through and I found this wonderful explanation for what can and can’t be claimed for work related clothing. I wouldn’t usually recommend turning to Facebook for tax advice, but having run my expert eye over the content I thought it worth sharing.

Credit for this blog goes to the Small Business Accountants & Advisors Brain Trust Facebook Group. The original author is unknown.

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 checkered chef trousers

• Distinctive uniforms

Protective Clothing

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 is tax deductible.

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.

Work Uniforms

Compulsory work uniform

This is defined as a uniform that identifies you as an employee of an organisation. 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.

What clothing items aren’t 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.

I would also add that gym wear purchased by yoga and gym instructors is also not tax deductible.

If you would like specific advice tailored to your business and circumstances, Accounting Heart offers affordable service packages where you can work with Sonia one-on-one to help you get your business where you want it to be. Book your FREE Discovery Call to find out more.

Disclaimer: This is general information only and is not advice of any sort. No warranty or representation is provided by Accounting Heart Pty Ltd as to the accuracy, currency or completeness of the information contained in this blog. Readers of this blog should not act or refrain from acting in reliance upon any information contained herein and must always obtain appropriate taxation and / or other advice as may be appropriate having regard to their particular circumstances.