Is work clothing tax-deductible in Australia?

Work clothing is an often-contested topic when it comes to tax deductibility in Australia. “But I only wear that item for work” is often not a good enough reason according to ATO guidelines. ​

There are very specific rules as to what items of clothing are claimable, so more often than not the clothing is not deductible (sorry).​

We’ve put together a short guide outlining what can and can’t be claimed.​

Before diving into what can be claimed, it’s probably easier to start with what can’t.​

Clothing that is considered ‘conventional’ cannot be deducted, even if the workplace says the clothing is compulsory.​

Conventional clothing is everyday clothes that can be worn regardless of job or workplace. For example, black trousers, a suit, jeans, or a white shirt.​

Essentially, if it’s an item of clothing you could see someone wear out and about in their private life and not just in a workplace, then it’s most likely not deductible.​

The general rule of thumb when it comes to what work clothing can be claimed is that the clothing is not suitable for everyday wear. This includes:​

Put another way, the work clothing should identify you as an employee (or contractor/worker) of a particular business or occupation.​

Work clothing specific to a particular occupation is claimable as it’s distinctive to your profession and wouldn’t be clothing you’d wear privately in your day-to-day life.​

For example, a traditional chef’s white jacket, a judge’s robe, or medical scrubs.​

Items of clothing worn to protect you from the risk of injury or illness during work activities is also claimable as a tax deduction.
To qualify as ‘protective’, the clothing must have features that provide a sufficient degree of protection against the risks you’re exposed to in your work environment. Basically, this means the item was designed specifically for protection, rather than everyday clothing that may offer some minor level of protection (e.g. a regular shirt that covers your arms from the sun would not get around the rules of conventional clothing).​

Examples of protective clothing include:​

Compulsory uniform can be claimed against your taxes if the items specifically identify you as a worker/employee of a particular business.​

For example, a work shirt that has the company logo embroidered on it would count as it’s distinctive and identifies you as a worker for that company. However, if you’re required to wear a regular white shirt with a name badge pinned to the chest, the shirt would still fall under conventional/everyday wear and not be claimable.​

Think of it this way, the item must be designed specifically for that employer/business and not be available for purchase by a member of the general public.​

This category for tax-deductible work clothing is only available for uniform that has been registered on the ‘Register of Approved Occupational Clothing’.​

The designs must meet a range of guidelines and be a complete outfit, not just an upper or lower half piece of clothing.​

In short, it depends on what type of clothing you wear for work. To help with some common grey areas, we’ve listed some examples.​

Unfortunately, the clothing you’re required to buy for work isn’t deductible as the items can be worn outside of work and are considered everyday clothes (even if you choose to only wear them for work purposes).​

You can not claim the t-shirt or jeans as these are not specific to your occupation, but you can claim the hi-vis vest and steel-tapped boots as they are protective items due to the nature of your job.​

You can claim the shirt as it has the company logo on it and is specific to that business and workplace. However, the pants are ordinary in nature and are not tax-deductible.​

If an item of clothing falls into one of the above tax-deductible categories, then you can also claim the costs you incur to wash, dry-clean, iron or repair the clothing.​

Laundry claims are typically calculated as follows:​

For dry cleaning or repair, you must claim (and keep records) or actual costs you incurred to dry clean and/or repair eligible work clothing.​

If the business/employer pays you an allowance for laundry expenses, you can only claim a deduction for your actual costs (not the amount of your allowance) AND you must include the allowance as income on your tax return.​

You should keep receipts when claiming a deduction for buying, laundering, or repairing work-related clothing.​

Records should show:​

While you dont always need to provide the receipts and proof specifically to your accountant or the ATO (although there are requirements to do so if the amount exceeds certain thresholds), we recommend keeping diary entries and receipts at all times to support your claims. If audited or asked, you will need to be able to show how the amounts were calculated.​

If clothing is of a conventional/everyday nature, then the purchase or laundering/repair of the clothing is not claimable as an income tax deduction.​

If the clothing is occupational-specific, protective, or compulsory (and distinctive), then the clothing is likely to be tax-deductible.​

If you're unsure, it is always best to check with your accountant.​