Issue
Whether uniform laundry expenses relating to a shirt of a particular colour, worn by outdoor workers are deductible under section 8-1 ( Income Tax Assessment Act 1997 (ITAA 1997)).
Decision
No. Expenses incurred in laundering the shirt are not deductible.
Facts
The 'coloured shirt' is required to be worn as a workplace safety requirement. It has long sleeves and is required to make wearers more visible. It has no other special features and does not have a corporate logo attached.
Reasons For Decision
Taxation Ruling TR 97/12 (Income tax and fringe benefits tax: work related expenses: deductibility of expenses on clothing, uniform and footwear) deals with the deductibility of clothing expenses, which are in general considered to be private in nature and not deductible under section 8-1 (ITAA 1997). Three relevant 'exceptions' listed in this Taxation Ruling are occupation specific clothing, protective clothing and compulsory uniforms.
A shirt of a particular colour is not occupationally specific as it could be worn in a number of occupations. The shirt is also not considered to be protective clothing within the meaning given in Taxation Ruling TR 97/12 . In addition, the 'shirt' is not a compulsory uniform as the taxpayer's employer does not expressly and strictly enforce the wearing of the shirt and the shirt does not identify the employee as working for a particular employer or identify the products or services provided by the employer (Taxation Ruling TR 97/12 and Taxation Ruling IT 2641).
As the cost of purchasing the 'shirt' would not be deductible, the laundry expenses relating to the shirt are not deductible.