Laundry expenses, while seemingly mundane, can accumulate over time, especially if your occupation requires specific attire.
The Australian Tax Office (ATO) allows taxpayers to claim deductions for work-related laundry expenses.
However, there are certain rules and limitations that must be adhered to.
What Can You Claim for Laundry?
You can claim a deduction for the costs of washing, drying, and ironing work-related clothing.
This includes clothing that falls into the following categories:
- Occupation-specific clothing: Clothing that is unique to your occupation, such as a chef’s uniform or a nurse’s scrubs.
- Protective clothing: Clothing that protects you from hazards in your workplace, like safety boots or a hard hat.
- Compulsory work uniforms: Uniforms that your employer requires you to wear.
- Registered non-compulsory work uniforms: Uniforms that are not mandatory but are registered with a relevant industrial body.
How Much Can You Claim?
The Australian Taxation Office (ATO) provides a reasonable basis for calculating your laundry claim:
- $1 per load: If the entire load consists of work-related clothing.
- 50 cents per load: If you mix personal items with work clothing.
You have to remember that these are estimates.
The actual amount you can claim depends on the number of loads you wash and the proportion of work-related clothing in each load.
Do I Need to Keep Records?
If your total laundry claim is $150 or less, you don’t need to keep written evidence.
However, if your claim exceeds $150, or your total work-related expenses claim is more than $300, you must have written evidence to support your deduction.
This evidence can include diary entries or receipts.
Can I Claim for Dry Cleaning?
No, you cannot claim a deduction for dry cleaning expenses.
However, you can claim for repairs and alterations to work-related clothing.
If your employer provides laundry facilities, you generally cannot claim a deduction for laundry expenses.
Can I Claim for Laundry Detergent and Other Supplies?
You cannot claim a deduction for the cost of laundry detergent, fabric softener, or other laundry-related supplies.
What If I Work From Home?
If you work from home, you might be able to claim a deduction for a portion of your laundry expenses.
However, the rules around working from home deductions can be complex, and it’s advisable to seek professional advice if you’re unsure.
Can I Claim for Laundry if I’m Self-Employed?
If you’re self-employed and wear specific clothing for work, you can generally claim laundry expenses as a business expense.
However, the rules can vary depending on your industry and business structure.
What Happens if the ATO Audits My Claim?
If the ATO decides to audit your tax return, they may request evidence to support your laundry claim.
You need to keep accurate records to avoid any issues during an audit.
How Can I Maximise My Laundry Claim?
To maximise your laundry claim, ensure you accurately record the number of loads you wash containing work-related clothing.
You should cnsider using a laundry diary to keep track of your expenses.
Additionally, ensure that the clothing you claim for is genuinely work-related and meets the ATO’s criteria.