Deductions and expenses: Uniform (Shoes and Socks)

Whether expenditure on shoes and socks that form part of a compulsory work uniform is an allowable deduction under Income Tax Assessment Act 1997 section 8-1.

The shoes and socks are not considered to form a distinctive part of the taxpayer's compulsory uniform and the expenditure incurred in purchasing these items is not deductible pursuant to Income Tax Assessment Act 1997 section 8-1.

The taxpayer is required to wear a uniform when performing work duties. Shirts, jacket and pants are supplied by the employer, with shoes and socks to be provided by the employees. Shoes are required to be black leather and are to be worn with black socks. If staff do not wear the uniform as specified by the employer, the staff member is sent home and is subject to disciplinary action.

Expenditure on shoes and socks may be deductible pursuant to Income Tax Assessment Act 1997 section 8-1 where they form a distinctive part of a compulsory uniform set out in the employer's expressed uniform policy and guidelines (Taxation Ruling TR 96/16 Income tax: work related expenses: deductibility of expenses on compulsory uniform shoes, socks and stockings.).

The employer has not stipulated the characteristics which qualify the shoes and socks as a distinctive part of the compulsory uniform, such as design, style or type of footwear as required by Taxation Ruling TR 96/16.

A uniform only includes shoes and socks where the employer's express uniform/wardrobe guidelines stipulate the characteristics which qualify each item as an integral part of the compulsory uniform. (Taxation Ruling TR 97/12 Income tax and fringe benefits tax: work related expenses: deductibility of expenses on clothing, uniform and footwear.).

Consequently, the shoes and socks are not considered to form a distinctive part of the taxpayer's compulsory uniform and the expenditure incurred in purchasing these items is not deductible pursuant to Income Tax Assessment Act 1997 section 8-1.