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ATO to target false laundry claims this Tax Time

Posted by Northadvisory on June 4, 2019

The ATO will take strong actions against false clothing and laundry work-related expense claims this Tax Time.

Assistant Commissioner Karen Foat said although many Australians claim clothing and laundry expenses, it is unlikely that half of all taxpayers are required to wear uniforms, protective clothing or occupation-specific clothing to earn their income.

The ATO is concerned about the number of people claiming deductions for conventional clothing. Some retail workers claim normal clothes because they are told to wear a certain colour, or items from the latest fashion clothing line. Others think they can claim normal clothes because they only wear them to work.

The ATO reminds taxpayers that an official dress code does not qualify as a uniform. A claim cannot be made for normal clothing, even if an employer requires the taxpayer to wear it, or only wear it to work.

Taxpayers who cannot substantiate their claims should expect them to be refused, and may be penalised for failing to take reasonable care when submitting their tax return.

If you have any questions or concerns about your work-related clothing, laundry and dry-cleaning expense deduction claims, please do not hesitate to contact us.

Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au