Clothing expenses

Did you have any uniform, occupation-specific clothing, protective clothing, laundry or dry-cleaning expenses that relate to your work as an employee?

Claim work-related clothing expenses at item D3 on your tax return.

You cannot claim a deduction for the cost of purchasing or cleaning a plain uniform or conventional clothing worn at work, even if your employer tells you to wear them, as it is a private expense. You cannot claim your expenditure on:

• waiter’s or waitress’s clothing (for example, a white shirt worn with black trousers, pants or skirt)
• clothing worn for medical reasons (for example, support stockings)
• conventional clothing that is damaged at work
• everyday footwear (for example, dress, casual or running shoes).

If you received an allowance from your employer for clothing, uniforms, laundry or dry-cleaning, show the amount at item 2 on your tax return. You cannot automatically claim a deduction just because you received a clothing, uniform, laundry or dry-cleaning allowance from your employer.

You cannot claim costs met by your employer or costs that are reimbursed, see Reimbursements.

You can claim a deduction for the cost of buying, renting, repairing and cleaning certain work-related uniforms, occupation-specific clothing or protective clothing.

Compulsory uniforms

A compulsory uniform is a set of clothing that, worn together, identifies you as an employee of an organisation having a strictly enforced policy that makes it compulsory for you to wear the uniform while at work.

You may be able to claim a deduction for shoes, socks and stockings if they are an essential part of a distinctive compulsory uniform, the characteristics of which (colour, style, type) are specified in your employer’s uniform policy. Wearing of the uniform must be consistently enforced. If your employer requires you to wear a distinctive uniform but does not consistently enforce the wearing of the uniform, the design of the uniform must be registered before you can claim a deduction, see Non-compulsory uniforms or corporate wardrobe.

Single items of compulsory clothing

You may be able to claim for a single item of distinctive clothing, such as a jumper or tie, if it is compulsory for you to wear it at work. Generally, clothing is distinctive if it has the employer’s logo permanently attached and the clothing is not available to the general public.

Non-compulsory uniforms or corporate wardrobe

If your employer requires or encourages you to wear a distinctive uniform or corporate wardrobe but does not consistently enforce the wearing of it, you can claim a deduction for the cost of the clothing only if the design of the clothing is registered. If you wear a non-compulsory uniform or corporate wardrobe, you cannot claim for stockings, socks or shoes as these items cannot be registered as part of a non-compulsory uniform. Your employer can tell you if your non-compulsory uniform or corporate wardrobe is registered.

Occupation-specific clothing

You can claim a deduction for the cost of occupation-specific clothing. This is clothing that is specific to your occupation, is not everyday in nature and would allow the public to easily recognise your occupation, for example, the checked pants worn by chefs.

Protective clothing

You can claim a deduction for the cost of buying, hiring, replacing or maintaining protective clothing. Protective clothing is clothing that you wear to protect yourself from the risk of illness or injury posed by your income-earning activities or the environment in which you are required to carry them out, for example, rubber gloves. You can also claim a deduction for the cost of clothing that you use at work to protect your ordinary clothes from soiling or damage, for example, aprons. For more information, see Taxation Ruling TR 2003/16 – Income tax: deductibility of protective items.

Laundry and dry-cleaning

You can claim a deduction for the cost of laundering and dry-cleaning work clothes that are eligible according to the relevant category described on this page (compulsory uniforms, single items of compulsory clothing, non-compulsory uniforms or corporate wardrobe, and protective clothing). For example, you can claim a deduction for cleaning a uniform that your employer provides and that you must wear at work.

You can claim laundry expenses for washing, drying or ironing such work clothes, including laundromat expenses. If your claim for laundry expenses is $150 or less, you do not need written evidence, but you must use a reasonable basis on which to work out your claim.

If you claim a deduction for laundry expenses that is more than $150 and your total claim for work-related expenses (other than car, meal allowance, award transport allowance and travel allowance expenses) exceeds $300, you need written evidence for the total claim. You can claim the cost of dry-cleaning work clothes if you have kept written evidence to substantiate your claim. You do not need written evidence if your total claim for work-related expenses is $300 or less.

 

Self-education expenses

Did you have self-education expenses relating to your work as an employee?

Self-education expenses are expenses related to a prescribed course of education provided by a school, college, university or other place of education. The course must be undertaken to gain a formal qualification for use in carrying on a profession, business or trade or in the course of employment. You can claim a deduction for the cost of self-education if there is a direct connection between your self-education and your work activities at the time the expense was incurred.

Claim self-education expenses at item D4.

Claim at item D5 the costs you incur in attending seminars, conferences, education workshops or training courses that are sufficiently connected to your work activities, see Other expenses

Self-education expenses are not deductible if your study is designed to get you:

• a job
• a new job, or
• income from a new income-earning activity.

Self-education expenses can include:

• textbooks expenses
• stationery expenses
• student union fees
• student services and amenities fees
• course fees
• certain travel expenses
• the decline in value of equipment to the extent you use it for self-education purposes (see Capital allowances).

You cannot claim costs met by your employer or costs that are reimbursed, see Reimbursements.

In certain circumstances you may have to reduce your deduction for self-education expenses by $250. However, you may have other types of expenses (some of which are not deductible) that can be offset against the $250 before you have to reduce the amount you can claim.

See question D4 in Individual tax return instructions for more information on self-education expenses.

 

Other expenses

Did you have other expenses relating to your work as an employee?

Here is a list of other expenses commonly incurred by hospitality industry employees. See question D5 in Individual tax return instructions for more information about the deductibility of these expenses.

You cannot claim costs met by your employer or costs that are reimbursed, see Reimbursements.

Answering machines, mobile phones, pagers and other telecommunications equipment

For information about claiming deductions for the decline in value of answering machines, mobile phones, pagers and other telecommunications equipment, see Capital allowances.

Calculators and electronic organisers

For information about claiming deductions for the decline in value of calculators and electronic organisers used for work, see Capital allowances.

Capital allowances

You can claim a deduction, called a capital allowance, for the decline in value of equipment used for work. If the equipment is also used for private purposes, you cannot claim a deduction for that part of the decline in value.

You cannot claim a deduction if the equipment is supplied by your employer or any other person.

Generally, the amount of your deduction depends on the effective life of the equipment.

Equipment costing $300 or less

If you purchased equipment costing $300 or less and you use it mainly for work, you can claim an immediate deduction for the work-related portion of the cost.

You cannot claim an immediate deduction if:

• the equipment is part of a set that you buy in the same income year and the total cost of the set is more than $300 (the set rule), or
• the equipment is one of a number of identical or substantially identical items you buy in an income year and the total cost of the items is more than $300 (the multiples rule).

Low-value pool

You also have the option to pool equipment costing less than $1,000 and equipment written down to less than $1,000 under the diminishing value method. You work out a deduction for the decline in value of equipment in this low-value pool out by a single calculation using set rates.

For more information on claiming a deduction for the low-value pool, see question D6 of Individual tax return instructions and make your claim at item D6.

Equipment for which you may be able to claim a capital allowance includes:

• answering machines, telephones, facsimile machines, mobile phones, pagers and other telecommunications equipment
• calculators and electronic organisers
• computers and computer software
• a professional library
• tools and equipment
• a professional library.

For more information about claiming deductions for the decline in value of equipment, see the Guide to depreciating assets 2014.

Cash or bar shortages

You can claim a deduction for the cost of making up cash or bar shortages.

Child care

You cannot claim a deduction for child care expenses. These are private expenses even if you need to pay for child care to go to work.

Computers and software

For information about claiming deductions for the decline in value of computers and software, see Capital allowances.

Driver licence

You cannot claim a deduction for the cost of getting or renewing your driver licence as it is a private expense.

Fines

You cannot claim a deduction for fines imposed:

• under a law of the Commonwealth, a state, a territory, a foreign country or
• by a court (for example, a fine you received for speeding when driving between jobs).

First aid courses

You can claim a deduction for the cost of first aid training courses if you, as a designated first aid person, are required to undertake first aid training to assist in emergency work situations.

Gaming licence

You can claim a deduction for the cost of renewing your special employees licence. You cannot claim a deduction for the cost of getting your initial licence.

Glasses and contact lenses

You cannot claim a deduction for the cost of buying prescription glasses or contact lenses as it is a private expense relating to a personal medical condition.

Grooming including hairdressing, cosmetics, hair and skin care products

You cannot claim a deduction for hairdressing, cosmetics, hair and skin care products as they are private expenses.

Hiring equipment

You can claim the costs of hiring equipment used for work. If the equipment is also used for private purposes, you cannot claim a deduction for that part of the hire cost.

Home office

Private study

You can claim a deduction for the additional running expenses of an office or a study at home that you use for income-producing activities. Running expenses include decline in value of home office equipment, the costs of repairs to your home office furniture and fittings, and heating, cooling, lighting and cleaning expenses. You cannot claim occupancy expenses, for example, rent, rates, mortgage interest and house insurance premiums, unless you are carrying on a business. If your only income is paid to you as an employee, you are not considered to be carrying on a business.

Diary records noting the time the home office was used for work are acceptable evidence of a connection between the use of a home office and your work. You will need to keep diary records during a representative four-week period. For more information on what records you should keep and the calculation of home office expenses, see Law Administration Practice Statement PS LA 2001/6 – Home office expenses: diaries of use and calculation of home office expenses.

Place of business

You can claim a deduction for part of the running and occupancy expenses of your home if you use an area of your home as a place of business. Taxation Ruling TR 93/30 – Income tax: deductions for home office expenses has information on whether or not an area set aside has the character of a place of business.

There may also be capital gains tax implications if you sell your home and it has been used as a place of business.

 

Insurance of equipment

You can claim a deduction for the cost of insuring your tools and equipment to the extent that you use them for work.

Interest costs

You can claim the cost of interest on money borrowed to purchase work-related equipment. If the equipment was also used for private purposes, you cannot claim a deduction for that part of the interest.

Meals

You cannot claim a deduction for the cost of meals eaten during a normal working day as it is a private expense, even if you receive an allowance to cover the meal expense. For information about claiming deductions for the cost of meals eaten during overtime, see Overtime meals.

Newspapers and magazines

You cannot claim a deduction for the cost of newspapers as it is a private expense.

Overtime meals

You may be able to claim a deduction for overtime meal expenses you incurred if you received an overtime meal allowance from your employer which was paid under an industrial law, award or agreement. To claim a deduction, you will need written evidence if your claim per meal is more than the rate stated in Taxation Determination TD 2013/16 - Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2013-14 income year? Read this determination together with Taxation Ruling TR 2004/6 – Income tax: substantiation exception for reasonable travel and overtime meal allowance expenses.

You can claim for overtime meal expenses incurred only on those occasions when:

• you worked overtime and
• you received an 'overtime meal allowance' for that overtime.

You must include amounts you received for overtime meal allowance as income at item 2 on your tax return.

If you received an award overtime meal allowance which is not shown on a payment summary, you may choose not to include the allowance as income at item 2 on your tax return and not claim a deduction, as long as:

• the allowance does not exceed the Commissioner’s reasonable allowance amounts, and
• you have fully spent it.

An amount for overtime meals that is part of your normal salary and wage income is not considered to be an overtime meal allowance.

Professional library

For information about claiming deductions for the decline in value of a professional library that includes books, tapes, compact discs, records and videos containing reference material directly related to your income-earning activities, see Capital allowances.

Removal and relocation

You cannot claim a deduction for the cost involved in taking up a transfer in an existing employment or taking up new employment with a different employer.

Repairs

You can claim a deduction for the cost of repairing tools and equipment for work.

If the tools or equipment were also used for private purposes, you cannot claim a deduction for that part of the repair cost.

Seminars, conferences and training courses

You can claim a deduction for the cost of attending seminars, conferences and training courses that are sufficiently connected to your work activities.

Stationery

You can claim a deduction for the cost of street directories, logbooks, diaries, pens and other stationery to the extent that you use them for work.

Technical or professional publications

You can claim a deduction for the cost of journals, periodicals and magazines that have a content sufficiently connected to your employment as a hospitality employee.

Telephone calls, telephone rental and connection costs

You can claim a deduction for the cost of work-related telephone calls.

You can claim a deduction for your telephone rental if you can show that you are on call or are regularly required to telephone your employer while you are away from your workplace. If you also use your telephone for private purposes, you must apportion the cost of telephone rental between work-related and private use.

You cannot claim a deduction for the cost of connecting a telephone, mobile phone, pager or any other telecommunications equipment as it is a capital expense.

You cannot claim a deduction for the cost of an unlisted telephone number (silent number) as it is a private expense.

Tools and equipment

For information about claiming deductions for the decline in value of tools and equipment used for work, see Capital allowances.

Union and professional association fees

You can claim a deduction for union and professional association fees. If the amount you paid is shown on your payment summary, you can use it to prove your claim. You can claim a deduction for a levy paid in certain circumstances, for example, to protect the interests of members and their jobs.

You cannot claim a deduction for:

• joining fees, or
• levies or other amounts you paid to assist families of employees suffering financial difficulties as a result of employees being on strike or having been laid off.

Remember

• Make sure you write down all your income on your tax return. Include benefits you received from the government, income from a second job and interest you received from a bank, building society or credit union.
• Sign your tax return. It is your responsibility to make sure your tax return is correct even if you use a registered tax agent.
• Keep all the records you need to prove your deduction claims. Keeping your tax records provides information on the type of records that you should keep and how long you need to keep them.
• Ask for help if you need it, from your registered tax agent or phone us.