FALSE claims for clothing and laundry work-related expenses will be in the Australian Taxation Office's (ATO) sights this year.
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Last year some six million people claimed work-related clothing and laundry expenses, totalling nearly $1.5 billion.
"You can't claim a uniform if you don't physically have one or they're not physically worn," accountant Alan Richardson said.
"If you wear the same clothes every day and wear them around the place, then you can't claim them full stop.
"You also can't claim laundry for that."
Mr Richardson said under some circumstances protective clothing could be claimed.
If you wear the same clothes every day and wear them around the place, then you can't claim them full stop.
- Accountant Alan Richardson
"If you buy protective clothing that's necessary for your job then you can claim it," he said.
ATO assistant commissioner Karen Foat said while many taxpayers could make these claims, it was unlikely half of all taxpayers were required to wear uniforms, protective clothing or occupation-specific clothing to earn their income.
"You must have spent the money you are claiming on buying or cleaning eligible clothes," she said.
"While you don't need receipts for claims up to $150, we can ask how you calculated your claim. We may even ask your employer if you have a required uniform.
"Last year a quarter of all clothing and laundry claims were exactly at the record-keeping limit. But don't think that we won't scrutinise a claim because we don't require receipts."
Also of concern to the ATO is the number of people claiming deductions for conventional clothing.
While you don't need receipts for claims up to $150, we can ask how you calculated your claim. We may even ask your employer if you have a required uniform.
- ATO Assistant Commissioner Karen Foat
Some retail workers claimed normal clothes because their boss told them to wear a certain colour, or items from the latest fashion clothing line.
Others thought they could claim normal clothes because they only wore them to work.
"Your workplace may expect you to wear clothing items like suits or black pants," Ms Foat said.
"But an official 'dress code' doesn't qualify as a uniform and you can't make a claim for normal clothing, even if your employer requires you to wear it, or you only wear it to work."
Ms Foat said the ATO's sophisticated data analytics were able to identify unusual claims by comparing taxpayer claims to others in similar occupations.
"Our data analytics will flag claims that are significantly above the average in occupations that regularly claim for laundry, like chefs or security guards," she said.
"It will also flag claims made by people in occupations that usually don't claim, like office workers.
"We don't ignore incorrect claims just because they are small, because small amounts add up."
Find more information about work-related expenses at ato.gov.au/deductions.
How to calculate a laundry claim
Are you claiming $150 or less for clothing and laundry (and less than $300 for work-related expenses in total)?
Make sure your claim is for eligible clothing (occupation-specific, protective or uniform). Remember, you cannot claim for plain or conventional clothing, even if your employer requires you to wear it and even if you only wear it to work. Calculate your claim for washing, drying and ironing at:
- $1 per load if the load is made up only of work-related clothing
- 50 cents per load if you include other laundry items
You may be asked to demonstrate how often you wore your eligible clothing (for example, evidence you worked three shifts a week for 48 weeks in a year).