ATO Cracking Down on Work Related Clothing & Laundry Claims

This year the ATO will be paying special attention to the amount claimed for work related clothing and laundry expenses, this includes deductions for uniforms, protective clothing or occupation specific clothing.

Common mistakes include people claiming ineligible clothing, claiming for something without having spent the money, and not being able to explain the basis for how the claim was calculated.

Tax payers should not view this deduction as an ‘entitlement’ and should ensure detailed records are kept to substantiate any claims made.

How can taxpayers make sure they get it right?

The best way to get your clothing and laundry claims right is to follow the three golden rules. Only claim if:

1. You paid for it yourself and you weren’t reimbursed
2. You were required to wear a uniform that’s unique and distinct to your employer, protective or occupation specific clothing
3. And you’ve got a record that demonstrates how you calculated your claim

Now remember: you cannot claim a deduction for normal clothes, even if your boss told you to wear them or you only wear them to work.

And there’s no such thing as a standard deduction or a safe amount – if it doesn’t meet the three golden rules, then don’t claim it.

For more information contact our office on 66580309 or alternatively visit the ATO website for further details.