The government has issued new guidelines to set out criteria for tax deductible non-compulsory uniforms.
Editor: 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.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.