Are Corporate Uniforms tax deductible? The answer is a little more complex than you might imagine.
The Australian Government allows people to claim the cost of corporate uniforms which are deemed ‘compulsory and necessary’. But, what does this mean? Compulsory uniforms must tick at least some the following boxes:
Required as part of a dress-code policy which is able to be enforced.
Policy is Key
In order for Corporate uniforms to be tax deductible, they need to be part of a dress-code policy. This means that a business dictates what uniform is and is not allowed, what accessories can be worn with that as well as other guidelines about general presentation, tattoos and footwear. Policies which are simple, clear and fair are the best.
Parts of corporate uniforms such as stockings and socks must be distinctive colours that someone would not usually wear in order for them to be tax-deductible. That means black socks or stockings can’t be claimed - even if a business requires employees to wear them. The logic behind this is that people will get wear out of these items outside of the office.
Laundering and Cleaning
Laundering costs for Corporate Uniforms which are deemed as compulsory are tax deductible too. So, things like nurses scrubs and sports jerseys can be cleaned at no cost to the employee. Make sure to keep your receipts though - otherwise claiming these costs can be tricky.
What You Can't Claim
Not all corporate uniforms are created equal. Some items cannot be claimed as tax deductible. Here’s your guide to some common things you can't claim:
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