Private ruling: Deduction for clothing expense
Published: August 2012
Ruling period: 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for sports wear? | A1: No

Relevant facts and circumstances: You are a teacher and you teach sporting activities at a school and you have purchased sports wear to use while working. You wear these clothes to allow you to be recognised as the sports teacher and also for ease to attend to the students at the end of the class.

Relevant legislative provisions: Income Tax assessment Act 1997 section 8-1

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1 997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income. Taxation Ruling TR 97/12 addresses work related expenses and deductibility of expenses on clothing and explains that the cost of conventional clothing is usually not considered to be an allowable deduction as there is insufficient connection between the expenditure and the income earning activities of the taxpayer. The expense is normally characterised as private. TR 97/12 provides that expenditure on the following types of clothing is considered to be deductible: · occupation specific clothing · compulsory uniform/wardrobe · non-compulsory uniform/wardrobe · protective clothing and footwear Taxation Ruling TR 95/14 addresses employee teachers' allowances, reimbursements and work-related deductions and deals with deductions for work related expenses generally claimed by teachers. TR 95/14 explains at paragraph 42 that in most cases, the cost of conventional clothing worn by teachers, will not be deductible as such expenses are considered to be of a private nature. The ruling goes on to explain at paragraphs 64 that teachers expenditure on sporting clothes is expenditure on conventional clothing and is not an allowable deduction In TR95/14 at paragraph 50 and TR 97/12 at paragraph 66, occupational specific clothing is described and clothing that distinctively identifies the wearer as a person associated with a particular profession, trade, vocation, occupation or calling. Examples given are a cleric's ceremonial robes, a barrister's robes, a chef's chequered trousers and a nurse's traditional uniform. There is no distinguishing aspect to the clothing; you have purchased conventional clothing from a retail store. In your case you have purchased sporting clothing of a kind that may normally be worn. It is not occupational specific as described in TR97/12 and TR95/14. The only distinctive aspect of the clothing is that it allows you to be identified as the sports teacher and ease in attending to your students. We acknowledge that you may only wear these clothes for work purposes and not personal use. However this does not alter the conventional nature of the clothing Accordingly the expense is private in nature and not deductible under section 8-1 of the ITAA 1997.

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