False laundry claims
ATO targeting false laundry claims
The ATO will take strong action against false clothing and laundry work-related expense claims this tax time.
The ATO noted that six million taxpayers claimed clothing and work-related laundry expenses in 2018. Although many Australians can claim clothing and laundry expenses, Assistant Commissioner Karen Foat said that 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.
Taxpayers are reminded 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 to be refused and may be penalised for failing to take reasonable care when submitting their tax return.