hi ..I work as a shop assistant in a clothing store and we are told we have to wear the clothes from the shop. We do get the clothes at a discount …can I claim the cost as a tax deduction
Generally no deduction available. If they are the general clothing of the company, it would be expected that they can be worn elsewhere as casual clothing etc.
This is a fairly common scenario in retain stores - big and small. The business may stipulate a certain colour scheme or style, or require their own products be worn, but they are not claimable.
Requirements are - Uniform (registered/logo), Protective(e.g. high vis, sun protection) or Occupation Specific (e.g. chef's outfit).
With the ATO's current plans for audit, would be worthwhile speaking to your accountant/tax agent to make sure you are getting this right.
Todd is on the money!! And dont think that the ATO wont be interested in auditing you.....there is a massive increase in audit activity by the ATO...and they are not wasting any of their audit budget on the big end of town.
The ATO has clearly got their eyes on wage earners......it is the tax equivalent of beating up the fat kid at school. wage earners have 3 attributes which make them perfect for an ATO audit:
1: they cant afford the $3000/hour barrister to defend them
2: they generally dont know enough about the rules to do it themselves
3: they generally are not great at keeping records
so, please get advice about what you can and CANNOT do. and KEEP records!!!!!!
almost everyone is missing out on deductions they should be claiming so a chat with an expert WILL benefit you. And is itself a tax deduction :)