Edited version of your private ruling

Authorisation Number: 1012476190444

Ruling

Subject: Work-related clothing expenses

Question

Are you entitled to a deduction for the cost of clothing?

Answer: No

This ruling applies for the following periods

Year ended 30 June 2011

Year ended 30 June 2012

The scheme commenced on

1 July 2010

Relevant facts

You are employed.

Your employer did not provide you with an allowance or uniform.

You purchased tops and pants.

The uniforms did not have a logo.

Your employer allowed you to wear these clothing items.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1

Reasons for decision

Clothing and laundry expenses are deductible under section 8-1 of the Income Tax Assessment Act 1997 where they have a relevant connection to the taxpayer's current income earning activities.

Taxation Ruling TR 95/15 states that a deduction for the cost of buying and cleaning a uniform may be allowable where the uniform is either:

· protective;

· occupation specific;

· compulsory; or

· non-compulsory, registered with the Secretary to the Department of Industry, Science and Tourism.

To be considered protective, the wearing of an item of uniform is necessary to protect the taxpayer from above average risk of physical injury in carrying out the requirements of his/her occupation or is necessary to enable the taxpayer physically to perform such requirements.

To be considered occupation specific the uniform must distinctly identify the employee as belonging to a particular profession, trade, vocation, occupation or calling. It is not clothing that can be described as ordinary clothing of a type usually worn by men and women regardless of their occupation. Examples of clothing that are considered to be occupation specific are female nurse's traditional uniforms, chefs' checked pants and a religious cleric's ceremonial robes.

A deduction is allowable for the cost of a female nurse's traditional uniform (for example a set of clothing consisting of a cap, white uniform (dress), cardigan and special non-slip nursing shoes). A female nurse's traditional uniform is considered to be peculiar to, and incidental and relevant to, the gaining of assessable income from the occupation of nursing. It is our understanding that the female nurse's traditional uniform is no longer commonly used. Therefore, a deduction is generally not allowable for a nurse's uniform under occupation specific clothing.

Expenditure on a compulsory and distinctive uniform/wardrobe is deductible where the necessary connection exists between the expenditure and the occupation such that the essential character of the expense is work related and unique. Compulsion is not the determinant for deductibility, but where it applies to clothing that is a distinctive uniform/wardrobe. To constitute a distinctive uniform/wardrobe it is not enough that there is a requirement to wear clothing of a particular colour or style at work. The uniform/wardrobe needs to be sufficiently distinctive so that the casual observer can clearly identify the employee as working for the particular employer, or identify the products or services provided by the employer.

In your case, your uniform consisted of pants and a top. These items are not considered to be sufficiently distinctive to identify you as working in a particular occupation or for a particular employer. While we empathise with your situation, the items are considered to be conventional clothing and therefore you are not entitled to claim a deduction for the purchase or cleaning of them.