Document ID: chunk:federal_register_of_legislation:F2017L01012:body:0:p2
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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 will be of a conventional nature and expenditure on the clothing will only rarely be an allowable deduction under section 8-1 of the Act.  One exception to this general rule concerns occupational clothing which is entered on the Register.

7. Where occupational clothing satisfies these Guidelines and is registered by an employer, the expenditure incurred by an employee in the rental, purchase or maintenance of items of clothing from the registered design will be eligible for tax deductibility under section 8-1 of the Act.

8. The availability of a deduction is also dependent upon how the registered occupational clothing is worn.  Employees must be aware that the clothing should be worn as an entirety, or set, rather than as individual pieces.  The constant wearing of occupational clothing items in conjunction with conventional clothing may lead to the conclusion that the clothing is simply a collection of ordinary conventional clothing.

9. The result of such a conclusion would be that tax deductions relating to the clothing would be denied.  In addition, where an employer has supplied the clothing without cost or at a reduced cost to employees a Fringe Benefits Tax liability may arise for the employer.

10. Details regarding the substantiation requirements of the Act are available from your local Australian Taxation Office.

REGISTER OF APPROVED OCCUPATIONAL CLOTHING

Background
11. One of the ways to ensure that employee expenditure on uniforms or wardrobes is eligible as a tax deduction is for the employer to have the design of occupational clothing entered on the Register of Approved Occupational Clothing (the Register).  Only designs of uniforms or wardrobes which are not protective clothing, occupation specific clothing or compulsory for an employee to wear while at work, need to be registered.

Benefits of Registration
12. The purpose of the Register is to provide a central reference for the registration of designs of occupational clothing.  This will enable the eligibility of claims for tax deductions for expenses incurred in the rental, purchase or maintenance of such occupational clothing to be determined by the Australian Taxation Office.  In addition, where an employer provides clothing from a registered design without cost, or at a reduced cost to employees there will be no Fringe Benefits Tax liability imposed upon the employer.

Contents
13. The Register lists those designs of occupational clothing which the administering authority is satisfied meet the criteria set out in these Guidelines.  Under the Act, the Industry Secretary is responsible for deciding whether to