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Keep your pants, but be careful if claiming them!

 

Claiming a $2,000 suit or your favourite corduroy trousers may not go down well with the ATO. It seems the common idea you can claim a standard deduction of $150, without spending money on appropriate clothing and laundry, is a myth.

ATO assistant commissioner Kath Anderson said common mistakes taxpayers make include ineligible clothing, claiming for something without having spent the money, and not being able to explain the basis of how the claim was calculated.

For a uniform to be deductible it either needs to be occupation-specific such as chef whites, medical scrubs, protective clothing i.e. hi vis clothing, non-slip shoes, etc. or a uniform that is unique to the organisation you work for i.e. company shirts with logo, trousers with logo, etc.”

The ATO is very strict about what can and can’t be claimed such as bartenders black trousers and white shirts, business attires without logos or your favourite socks! For a more boring look at what can and can’t be claimed follow the link to the ATO below.

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