It’s approximately two weeks to the end of the financial year, and right about now you might be scrounging around for receipts, seeing what you can claim – or planning some tax-redeemable purchases before June 30.
But if clothes are among your would-be deductions, watch out. Those black pants may not be as reimbursable as you think they are.
That’s according to the Australian Taxation Office, who have warned they will be more closely scrutinising work-related clothing and laundry expenses this year.
So if like us, you need to brush up your claim knowledge read on.
What clothes you can claim
According to the ATO’s website, you can claim a deduction for the exact cost of the following:
- Occupation-specific clothing
- Protective clothing
- Work uniforms
- Cleaning of work clothing
So that covers everything, right? Well, not exactly. The rules on what you can and can’t claim from your wardrobe are actually quite strict.
So for instance, occupation-specific clothing means things like chequered pants for chefs – something that would look out-of-place if worn outside of the kitchen. But the waiters at that same restaurant cannot claim the black pants they’re told to wear to work – because black pants can be worn just about anywhere.
Protective clothing relates only to the clothes and footwear you wear to protect yourself from illness or injury, including fire-resistant and sun-protection clothing, safety-coloured vests and non-slip nurse’s shoes. The key here is that the clothes must provide a specific protection – so a long shirt worn to protect you from the sun doesn’t count – nor do regular closed-toe shoes.
You can of course, claim your specific, distinct work uniform (so yes if it has a logo) but it has to be a compulsory part of your uniform (unless the design has been registered with AusIndustry).