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Edited version of your written advice
Authorisation Number: 1012804975162
Ruling
Subject: Conventional clothing
Question
Are you entitled to a deduction for clothing and shoes worn for work?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2014
The scheme commences on
1 July 2013
Relevant facts and circumstances
The arrangement that is the subject of the private ruling is described below. This description is based on the following documents. These documents form part of and are to be read with this description. The relevant documents are:
• the application for private ruling,
• copy of your employers grooming guidelines
You are employed in a particular field.
Your employer has grooming guidelines that requires a specific dressing code.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income.
Taxation Ruling TR 97/12 considers the deductibility of work related clothing, uniform and footwear expenses.
The ruling states that generally the cost of buying clothing will be regarded as an expense of a private nature. Clothing is necessary for protection of the body from the elements and to meet social norms of modesty, fashion or similar conditions.
TR 97/12 also considers the deductibility of conventional clothing. Conventional clothing is everyday clothing that would ordinarily be worn, or which could reasonably be worn, by a person irrespective of whether that person is working or not, for example, a pair of jeans or a shirt.
TR 97/12 states that expenditure on conventional clothing is often not an allowable deduction as there is not usually a sufficient connection between the expenditure and the income earning activities of a taxpayer.
The circumstances where expenditure for clothing is considered to be deductible are where the clothing is:
• occupation specific clothing
• a compulsory uniform/wardrobe
• a non-compulsory uniform/wardrobe
• protective clothing and footwear
In your case, you purchase clothing that is a requirement of your employers grooming guidelines. It is not considered to be part of a compulsory or non-compulsory uniform or to be protective in nature and does not identify you as a member of any specific profession. Therefore the clothing cannot be considered to be occupational specific clothing. The clothing is considered to be conventional in nature, and is available to the general public and is not distinctive or unique to the nature of your work. It is not considered that the essential character of the expenditure is work related.
Therefore, the cost of purchasing clothing and shoes for work is not deductible. Additionally, the cost of laundering these clothes is likewise not deductible.