Can The Cost of Clothing Be Tax Deductible?

Every year, thousands of Australians wonder whether they can claim their work clothing as a tax deduction.

After all, many professionals require specific outfits, from business attire to work boots, and the cost of keeping clothing clean and presentable certainly adds up. Yet, despite how common this question is, the rules are often misunderstood, and the reality is that the Australian Tax Office (ATO) is far more restrictive than people expect.

Whether you’re an employee, contractor or business owner, understanding the difference between deductible work clothing and private of conventional clothing is essential.

Whilst some items, such as protective clothing or occupation-specific uniforms, may qualify for a deduction, most everyday clothing does not, even if your employer requires a certain standard of dress. Misinterpreting this can lead to incorrect claims, potential adjustments during an audit, or penalties for over-claiming.

This article breaks down the ATO’s key categories for deductible clothing, including occupation-specific gear, compulsory uniforms, registered non-compulsory uniforms and protective equipment. We also cover the rules for laundry expenses, record keeping and allowances so you can approach tax time with clarity and confidence.

At Wilson Pateras, we help individuals and businesses navigate Australia’s tax system with accuracy and practical guidance. Below, we outline what the ATO actually permits, and what it doesn’t, so you can ensure your claims are compliant and optimised.

What You Cannot Claim: Conventional Clothing

The ATO is very clear: conventional clothing is not tax-deductible, even when it is required by your employer. This includes items such as:

• Business suits;
• Office attire;
• Non-monogrammed black pants and white shirts (e.g. for wait staff)
• Jeans or drill shirts worn by tradespeople; and
• Athletic wear worn by PE teachers.

Why? Because these items are considered private in nature. They can be worn outside of work, and the ATO does not view them as being exclusively tied to income-producing activities. Even if you only purchased a suit because your employer required it, the cost remains non-deductible because it is still considered conventional.

This distinction can be frustrating, but understanding it is essential to avoiding incorrect claims.

Deductible Clothing Category 1: Occupation-Specific Clothing

Occupation-specific clothing is designed only for people in a particular profession and cannot reasonable be worn outside of work.

Examples include:

• A chef’s distinctive chequered trousers;
• A nurse’s or medical worker’s scrubs, stockings or non-slip shoes; and
• Protective apron and smocks used to prevent contamination in specialist environments.

If the clothing is unique to your profession and makes it clear what your occupation is, it generally falls on the deductible side of the ATO’s rules. This category is relatively narrow, so it’s important to ensure your clothing genuinely meets the criteria.

Deductibility Clothing Category 2: Compulsory Work Uniform

A compulsory uniform must be:

1. Strictly mandated by your employer, and
2. Distinctive and unique to the organisation.

A compulsory uniform typically includes items with a permanent company logo, unique design features, or clothing created solely for that organisation.

You can claim for the cost of:

• Compulsory uniform items;
• Distinctive shoes, socks or stockings if they form an integral part of that uniform; and
• A single compulsory item (e.g., a jumper) if it is unique, employer-branded and not publicly available.

Importantly, colour alone is not enough. Wearing a black jumper because the company prefers that colour does not make it deductible unless it is part of a formally documented, enforced and uniquely designed uniform,

Deductible Clothing Category 3: Registered Non-Compulsory Uniforms

Some workplaces offer branded or themed uniforms that are not mandatory.

In these cases, you can only claim a deduction if:

• The uniform is registered with AusIndustry, and
• It appears on the Register of Approved Occupational Clothing.

Employees often assume that any branded clothing is deductible; however, unless the design is formally registered, it does not qualify. Your employer should be able to confirm whether their non-compulsory uniform is officially listed.

Deductible Clothing Category 4: Protective Clothing & Equipment

Protective clothing is one of the more straightforward categories.

If it is designed to keep you safe or protect your ordinary clothing from damage, you can typically claim it. Common examples include:

• Steel-capped boots;
• Fire-resistant or arc-rated clothing;
• High-visibility jackets or vests;
• Sun-protection clothing with a UPF rating;
• Heavy-duty gloves;
• Waterproof or weather-resistant gear for outdoor work;
• Non-slip shoes (e.g., for nurses and care workers); and
• Boiler suits, aprons, overalls or smocks that prevent contamination or clothing damage.

If the purpose is safety or protection, it generally meets the ATO’s definition.

Laundry, Dry Cleaning & Repairs

If your clothing is deductible under any of the categories above, you can also claim the cost of cleaning it.

The ATO provides standard rates for home laundering:

• $1.00 per load when the load contains only deductible work clothing; or
• $0.50 per load when mixed with personal clothing.

You can also claim:

• Dry cleaning costs;
• Repairs and mending; and
• Alterations (of to maintain the usable condition of deductible clothing).

These expenses can add up over the year, so keeping accurate records is critical.

Record Keeping Requirements

To validate your claims, you should keep:

• Receipts for all clothing purchases;
• Dry cleaning and laundry invoices;
• A diary of laundering activity (if washing at home); and
• Evidence that the clothing meets ATO criteria.

Good documentation ensures your deduction is defensible if reviewed.

Clothing Allowance

If your employer pays a clothing or laundry allowance, it must be declared as taxable income. You can still claim a deduction, but only for the amount you actually spent, not the amount of the allowance itself.

Common misconceptions to avoid

• “My employer requires it, so it must be deductible.”
  • Not true. Employer requirements do not override ATO rules.
• “If it has a logo, it must be deductible.”
  • Not unless the uniform is compulsory or registered.
• “Work boots are always deductible.”
  • Only protective boots (e.g., steel caps) qualify – not general fashion or casual boots.
• “I only wear it for work, so I can claim it.”
  • The ATO focuses on the type of clothing, not the frequency of use.

ATO Outcomes If You Over-Claim

The ATO frequently audits work-related clothing deductions and consistently identifies incorrect claims.

Over-claiming can result in:

• Adjusted returns;
• Interest charges; and
• Administrative penalties.

Understanding the rules – and claiming only what is permitted, is the safest and most cost-effective approach.

Need Clarity? Speak With One Of Our Tax Specialists

Understanding what the ATO allows can be confusing, and the consequences of an incorrect claim can be frustrating.

If you’re unsure whether your work clothing, laundry expenses or uniform qualifies for a deduction, our experienced team at Wilson Pateras can help.

We provide personalised advice based on your role, industry and employment arrangements, ensuring your claims are compliant, maximised and supported by appropriate evidence.

Get in touch with our team for clear, practical tax guidance and support with preparing your return.