Some important things to note for the 2018 Tax season:
The ATO have been given an extra $130.8 Million boost to increase compliance activity and will be targeting individual tax payers claiming work related expenses such as clothing, laundry, telephone, internet and car expenses as well as Airbnb operators or hosts. We cannot stress to our clients enough the importance of keeping detailed records and receipts for any work related claims they intend on making.
Laundry Claims:
To claim the items they must be 'Occupation Specific, Protective or a Uniform'.
The ATO calculates a reasonable basis to claim is:
- $1 per load (if the load is made up of only work related clothing).
- 50c per load (if the load includes other laundry)
While you don't need written evidence for laundry claims under $150, you must be able to show how it was calculated e.g. evidence that you worked 3 shifts per week for 48 weeks ($1 x 3 shifts x 48 weeks a year = $144.00).
Work Related Clothing Claims:
To claim these items there are 3 rules.
- Must be a uniform, protective or occupation specific clothing directly related to earning your income.
- You must of paid for it yourself and not been reimbursed by your employer.
- You must have records and receipts to prove it.
You cannot claim Suits, Black Pants or any Conventional Clothing. (This is regardless of whether you are required to wear a certain colour or only wear them to work).