Evidence to support expense
If you incurred work-related clothing and laundry expenses and wish to claim these as a deduction, the nexus has to be established. If your tax return is selected for a review or an audit, you may be asked to provide the following records to the ATO:
- details of the necessity for you to wear compulsory and non-compulsory uniform, or occupation-specific clothing, as part of the conditions of your employment
- details or duty statement of the necessity for you to wear protective clothing as part of your employment
- information about how and why the necessary clothing or uniform you are required to wear qualifies as uniform, protective or occupation-specific clothing
- letter from your employer(s), including contact name and telephone number, to confirm:
- the requirement for you to wear compulsory or non-compulsory uniform, protective or occupation-specific clothing
- details of the specific apparel worn and why the clothing or uniform qualifies as uniform, protective or occupation-specific clothing
- details of whether work-related the uniform or protective or occupation-specific clothing was supplied by the employer, or paid for by you and reimbursed at a later time
- details of any specific uniform and laundry allowances paid to you
Substantiation
To substantiate the deduction you may be asked to provide the following records:
- list of all items claimed for work-related clothing expenses and receipts or other documentary evidence for each item, including any dry cleaning expenses for those items
- for laundry expenses not exceeding $150, an explanation of the basis for working out the claim
- if your total claim for work-related expenses exceeds $300 (not including car, meal allowance, award transport payments allowance and travel expenses), written evidence such as diary entries and receipts for laundry expenses greater than $150.
Diary entries are only acceptable when each expense is $10 or less and the total of all such expenses is $200 or less
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