When is a uniform not a uniform for taxation purposes?
Monday, December 4th, 2006The larger department stores require their staff to wear only black and white. Black pants or skirt, white or black shirt. Many restaurants have a similar clothing policy, often a black shirt and trousers.
It’s a uniform.
However, when you show up at your tax office with all the dry cleaning/laundry receipts, what does your tax agent say?
“I am sorry, but you can’t claim that as a uniform.”
“But it’s compulsory,” you protest.
The tax agent counters, “You could reasonably wear those clothes anywhere.”
“But I never do. I can’t wait to get out of them when I get home. And as for wearing them on the weekends…” You shudder. “I am so sick of black and white I wear reds, and vibrant purples.”
You tax agent shakes his head sadly. “I’m sorry, but you still can’t claim them.”
The ATO will only accept clothing as a uniform in the following cases:
- If the uniform is registered with the Tax Office, or
- If it is specific to the trade e.g. Chef’s uniform, or
- It is protective clothing such as mechanics’ overalls or a nurse’s uniform, or
- If it is corporate uniform with a recognisable logo, such as those worn by bank staff.
You cannot claim clothing as a deduction just because your company makes you wear it.
If the clothing is considered street wear, that is you can go into a shop and buy it pretty much anywhere, then you cannot claim it.