Document ID: chunk:federal_register_of_legislation:F2017L01012:body:0:p1
Version: federal_register_of_legislation:F2017L01012
Segment Type: other
Provision Reference: 
Character Range: 0–3159

COMMONWEALTH OF AUSTRALIA

Income Tax Assessment Act 1997

FORMULATION OF GUIDELINES UNDER DIVISION 34

I, KELLY O'DWYER, the Minister for Revenue and Financial Services, acting under Division 34 of the Income Tax Assessment Act 1997:

                  formulate the attached Guidelines under Division 34 of the Income Tax Assessment Act 1997.

    The attached Guidelines commence on 1 October 2017, and the previous Guidelines are revoked with effect from the same day.

    Dated this 7th day of August 2017

KELLY O'DWYER
Minister for Revenue and Financial Services

APPROVED OCCUPATIONAL CLOTHING GUIDELINES 2017

CONTENTS

   Clause

INTRODUCTION 1

LEGISLATIVE AUTHORITY 4

DEDUCTIBILITY OF EXPENDITURE 6

REGISTER OF APPROVED OCCUPATIONAL CLOTHING

  Background 11
  Benefits of Registration 12
  Contents 13
  Registration of Employers and Occupational Clothing Designs 14
  Registration Procedure 15
  Access to the Register 16

REGISTRATION CRITERIA 17

FACTORS TO BE CONSIDERED

  Nature of the Employer's Business or Activities 19
  Single Items of Clothing 20
  Corporate, Product or Service Identifiers 21
  'Stand Alone' Identifiers 23
  Pattern Identifiers 25
  Colours 27
  Range 31
  Durability 32
  Changes to Designs 34
  Accessories 37

DEFINITIONS

  Class of Employees 39
  Employees 40
  Compulsory Occupational Clothing 41
  Corporate 42
  Corporate, Product or Service Identifiers 43
  Design 44
  Occupational Clothing 47
  Occupation Specific Clothing 48
  Protective Clothing 51

CONTACT ADDRESSES 54

APPROVED OCCUPATIONAL CLOTHING GUIDELINES 2017

INTRODUCTION

1. NOTE:  The material appearing below in italics is explanatory only and does not form part of the Guidelines formulated under Division 34 of the Income Tax Assessment Act 1997  (the Act).

2. These Guidelines outline:

     (a) the tax law as it relates to occupational clothing;
     (b) the steps that need to be undertaken by employers to have designs of occupational clothing registered; and
     (c) the factors that will be considered in determining whether designs of occupational clothing may be registered.

3. These Guidelines commence on the day after they are registered on the Federal Register of Legislation.

LEGISLATIVE AUTHORITY

4. Division 34 of the Act regulates the deductibility of non-compulsory uniforms and wardrobes. The taxation law only allows a deduction to employees for expenditure on uniforms or wardrobes where either:

     (a) the clothing is in the nature of *occupation specific, or *protective clothing; or
     (b) the wearing of the clothing is a compulsory condition of employment for *employees and the clothing is not conventional in nature (*compulsory occupational clothing); or
     (c) where the wearing of the clothing is not compulsory, the design of the clothing is entered on the Register of Approved Occupational Clothing (the Register).

5. The meanings of the highlighted words used in Clause 4 above are contained in the 'Definitions' section of these Guidelines.

DEDUCTIBILITY OF EXPENDITURE

6. In the vast majority of cases, clothing worn by an employee while at work