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Information below courtesy of the Australian Taxation Office (ATO)
There are a lot of misconceptions about what you can and can’t claim as a work-related expense. Don’t rely on your mate’s advice – check the below tips before completing your tax return.
Clothing expenses
With a few exceptions, clothing is a private expense. Common errors include employees incorrectly claiming:
- conventional clothing, such as plain white shirts or black pants.
- the purchase of clothing sold in the store that they work.
You can’t claim a deduction for these items, even if your employer requires you to wear them and you only wear these items of clothing at work.
You can claim a deduction for costs you incur to buy, hire, repair or replace clothing and footwear you wear at work if it’s in one of the following categories:
- a compulsory uniform, that your employer strictly and consistently enforces you wear by workplace agreement or policy and distinctly identifies either
- you as an employee working for a particular employer
- the products or services your employer provides
- a non-compulsory uniform, that your employer listed on the Register of Approved Occupational Clothing with AusIndustry.
| Situation | Clothing deductible | Laundry deductible | Reason |
|---|---|---|---|
| Your employer tells you to wear plain black pants and a black polo shirt | No | No | Conventional clothing that is not distinctive to your employer |
| Your employer tells you to wear plain black pants and supplies a top with a logo that is unique and distinctive to your employer | No | Top – yes |
Top Pants |
| Your employer tells you to purchase and wear a specific top with a logo on it and plain black pants |
Top – yes Pants – no |
Top – yes Pants – no |
Top Pants |
| Your employer tells you to purchase and wear a specific top with a logo on it and black pants from XYZ retail outlet |
Top – yes Pants – no |
Top – yes Pants – no |
Top Pants |
| You are required to purchase a uniform of a certain style and colour that your employer registers, made up of a shirt with a logo and black pants | Yes | Yes | You are required to purchase a registered uniform that is sufficiently distinctive and unique to your employer |
| Your employer tells you to purchase and wear the latest line of clothes from the store you work at | No | No | You cannot claim for the cost of plain clothing you wear at work, even if it’s clothing sold at the store you work at and your employer requires you to wear it |
Car expenses
You may be able to claim work-related car expenses if you use your car to drive:
- directly between separate jobs on the same day (for example, travelling to your second job as a waiter)
- to and from an alternate workplace for the same employer on the same day (for example, driving between separate retail stores for the same employer).
You can’t claim the cost of normal trips between home and work, even if you live a long way from your usual workplace or have to work outside normal business hours, for example, late-night shopping or weekend shifts.
Still unsure about what you can claim? Visit ATO’s retail workers guide at ato.gov.au/retail21
or contact YBM, we can help you get the most out of your tax return.
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