ATO Interpretative Decision
ATO ID 2001/72 (Withdrawn)
Income Tax
Deductibility: Laundry Expenses (Outdoor Workers)FOI status: may be released
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This ATO ID is withdrawn as the interpretative issue is covered in TR 2003/16This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Whether uniform laundry expenses relating to a shirt of a particular colour, worn by outdoor workers are deductible under section 8-1 (Income Tax Assessment Act 1997 (ITAA 1997)).
Decision
No. Expenses incurred in laundering the shirt are not deductible.
Facts
The 'coloured shirt' is required to be worn as a workplace safety requirement. It has long sleeves and is required to make wearers more visible. It has no other special features and does not have a corporate logo attached.
Reasons For Decision
Taxation Ruling TR 97/12 (Income tax and fringe benefits tax: work related expenses: deductibility of expenses on clothing, uniform and footwear) deals with the deductibility of clothing expenses, which are in general considered to be private in nature and not deductible under section 8-1 (ITAA 1997). Three relevant 'exceptions' listed in this Taxation Ruling are occupation specific clothing, protective clothing and compulsory uniforms.
A shirt of a particular colour is not occupationally specific as it could be worn in a number of occupations. The shirt is also not considered to be protective clothing within the meaning given in Taxation Ruling TR 97/12. In addition, the 'shirt' is not a compulsory uniform as the taxpayer's employer does not expressly and strictly enforce the wearing of the shirt and the shirt does not identify the employee as working for a particular employer or identify the products or services provided by the employer (Taxation Ruling TR 97/12 and Taxation Ruling IT 2641).
As the cost of purchasing the 'shirt' would not be deductible, the laundry expenses relating to the shirt are not deductible.
Date of decision: 30 November 1998
Legislative References:
Income Tax Assessment Act 1997
section 8-1
Related Public Rulings (including Determinations)
TR 97/12 - Income tax and fringe benefits tax: work related expenses: deductibility of expenses on clothing, uniform and footwear
TR 97/12A - Addendum
Keywords
Clothing expenses
Corporate and compulsory clothing expenses
Laundry and dry cleaning expenses
Private or domestic expenses
Protective clothing expenses
ISSN: 1445-2782
| Date: | Version: | |
| 30 November 1998 | Original statement | |
| You are here | 3 March 2006 | Archived |