Private ruling: Work related laundry expenses
Published: August 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for laundry costs? | A1: Yes, where a diary recording the expense is maintained.

Relevant facts and circumstances: You wash and dry your work uniforms twice per week in coin operated washing machine and drier, which costs you $X per load. You have no way of obtaining receipts for using the machines, as they are coin operated and there is no staff, at the establishment to request receipts. You cannot wash your personal clothing with your work clothing.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1. | Income Tax Assessment Act 1997 Section 900-125. | Income Tax Assessment Act 1997 Section 900-130.

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all outgoings to the extent to which they are incurred in gaining or producing assessable income, or are necessarily incurred in carrying on a business for that purpose. However, a deduction is not allowable for outgoings that are of a capital, private or domestic nature. Taxation Ruling TR 97/24 states that relief from substantiation is available where the Commissioner considers it unreasonable to expect a taxpayer to have obtained written evidence of an expense in any other way permitted by Subdivision 900E of the ITAA 1997. In these circumstances section 900-130 of the ITAA 1997 allows you to make a record of the expense. These expenses can be recorded using the method specified in section 900-125 of the ITAA 1997. In such cases you are required to make a record of those expenses instead of getting a document from the supplier. For example, you can record the details in a diary. The record must be made as soon as possible after the expense is incurred and contain all the details required on a receipt. In your case, provided the above substantiation is kept, you are entitled to a deduction for laundry expenses incurred under section 8-1 of the ITAA 1997.