New Approved Occupational Clothing Guidelines 2017
The government has issued new guidelines to set out criteria for tax deductible non-compulsory uniforms.
The taxation law only allows a deduction to employees for expenditure on uniforms or wardrobes where either:
- the clothing is in the nature of occupation specific, or protective clothing; or
- the wearing of the clothing is a compulsory condition of employment for employees and the clothing is not conventional in nature; or
- where the wearing of the clothing is not compulsory, the design of the clothing is entered on the Register of Approved Occupational Clothing.
The new guidelines outline (among other things):
- the steps that need to be undertaken by employers to have designs of occupational clothing registered; and
- the factors that will be considered in determining whether designs of occupational clothing may be registered.
The guidelines commence on 1 October 2017, and the previous Guidelines are revoked with effect from the same day.