{"id":"F2017L01012","name":"Approved Occupational Clothing Guidelines 2017","slug":"approved-occupational-clothing-guidelines-2017","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":96915,"registerId":"commonwealth-F2017L01012-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"INTRODUCTION","sectionType":"part","heading":"INTRODUCTION","content":"# INTRODUCTION\n\n1. 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).\n\n2. These Guidelines outline:\n\n(a) the tax law as it relates to occupational clothing;\n\n(b) the steps that need to be undertaken by employers to have designs of occupational clothing registered; and\n\n(c) the factors that will be considered in determining whether designs of occupational clothing may be registered.\n\n3. These Guidelines commence on the day after they are registered on the Federal Register of Legislation.","sortOrder":0},{"sectionNumber":"LEGISLATIVE AUTHORITY","sectionType":"part","heading":"LEGISLATIVE AUTHORITY","content":"# LEGISLATIVE AUTHORITY\n\n4. 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:\n\n(a) the clothing is in the nature of \\*occupation specific, or \\*protective clothing; or\n\n(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\n\n(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).\n\n5. The meanings of the highlighted words used in Clause 4 above are contained in the 'Definitions' section of these Guidelines.","sortOrder":1},{"sectionNumber":"DEDUCTIBILITY OF EXPENDITURE","sectionType":"part","heading":"DEDUCTIBILITY OF EXPENDITURE","content":"# DEDUCTIBILITY OF EXPENDITURE\n\n6. 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.\n\n7. 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.\n\n8. 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.\n\n9. 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.\n\n10. Details regarding the substantiation requirements of the Act are available from your local Australian Taxation Office.","sortOrder":2},{"sectionNumber":"REGISTER OF APPROVED OCCUPATIONAL CLOTHI","sectionType":"part","heading":"REGISTER OF APPROVED OCCUPATIONAL CLOTHING","content":"# REGISTER OF APPROVED OCCUPATIONAL CLOTHING","sortOrder":3},{"sectionNumber":"Background","sectionType":"part","heading":"Background","content":"## Background\n\n11. 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.","sortOrder":4},{"sectionNumber":"Benefits of Registration","sectionType":"part","heading":"Benefits of Registration","content":"## Benefits of Registration\n\n12. 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.","sortOrder":5},{"sectionNumber":"Contents","sectionType":"part","heading":"Contents","content":"## Contents\n\n13. 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 register designs of non-compulsory uniforms (section 34-30) and maintaining the Register (section 34-45). The Secretary can delegate those functions to employees of a certain level within the Department (section 34-65).","sortOrder":6},{"sectionNumber":"Registration of Employers and Occupation","sectionType":"part","heading":"Registration of Employers and Occupational Clothing Designs","content":"## Registration of Employers and Occupational Clothing Designs\n\n14. Employers who introduce occupational clothing must apply to have the design entered on the Register if expenses incurred by employees in the rental, purchase or maintenance of the clothing are to be eligible for tax deduction. Registration will also ensure that employers are not subject to Fringe Benefits Tax in situations where the clothing is provided free or at discounted prices to employees.","sortOrder":7},{"sectionNumber":"Registration Procedure","sectionType":"part","heading":"Registration Procedure","content":"## Registration Procedure\n\n15. Employers must submit a request for registration of their design on the application form available from the administering authority. All details required on the form must be provided in order that a full assessment of the eligibility of the design can be undertaken. An incomplete form will be returned for completion. This will delay registration.","sortOrder":8},{"sectionNumber":"Access to the Register","sectionType":"part","heading":"Access to the Register","content":"## Access to the Register\n\n16. Any person may inspect, at any reasonable time, the information on the Register held by the administering authority. The contact details for the administering authority, AusIndustry, (a division of the Industry Department) are at the end of these guidelines.","sortOrder":9},{"sectionNumber":"REGISTRATION CRITERIA","sectionType":"part","heading":"REGISTRATION CRITERIA","content":"# REGISTRATION CRITERIA\n\n17. Whether clothing constitutes \\*approved occupational clothing is a question of fact and impression that can only be determined on a case by case basis in the light of all the circumstances.\n\n18. For applications for a \\*design to be entered on the Register to succeed the design, as a whole, must have a distinctive look and a cohesive and obvious identity. If the clothing is considered to be simply a collection of conventional clothing items the application for registration will fail. In addition, tax deductions will not be allowable for the expenses incurred in the rental, purchase or maintenance of the clothing and the employer may be subject to Fringe Benefits Tax if the clothing is supplied to employees without cost or at a reduced cost.\n\n#","sortOrder":10},{"sectionNumber":"FACTORS TO BE CONSIDERED","sectionType":"part","heading":"FACTORS TO BE CONSIDERED","content":"# FACTORS TO BE CONSIDERED","sortOrder":11},{"sectionNumber":"Nature of the Employer's Business or Act","sectionType":"part","heading":"Nature of the Employer's Business or Activities","content":"## Nature of the Employer's Business or Activities\n\n19. The nature of the employer's business or activities will be considered when determining the suitability of the designs that make up the approved occupational clothing. For example, items of clothing that may be suitable for a business operating in an office environment may not be suitable for activities carried on at a plant nursery or a boat building factory.","sortOrder":12},{"sectionNumber":"Single Items of Clothing","sectionType":"part","heading":"Single Items of Clothing","content":"## Single Items of Clothing\n\n20. Single items of occupational clothing, other than full body garments (such as dresses), will not be admitted to the Register. Consequently, expenditure on such items is ineligible for deductibility under section 8-1 of the Act.","sortOrder":13},{"sectionNumber":"Corporate, Product or Service Identifier","sectionType":"part","heading":"Corporate, Product or Service Identifiers","content":"## Corporate, Product or Service Identifiers\n\n21. Corporate, product or service identifiers are a compulsory requirement for any design seeking admission to the Register. There are two types of identifiers:\n\n(a) stand alone - a corporate, product or service identifier which is a discreet symbol, logo, initial, form of words etc. and which is distinct from the item of clothing to which it is affixed; and\n\n(b) pattern - a corporate, product or service identifier which is used in the form of a distinctive pattern over the entire item of clothing and which forms an integral part of that clothing.\n\nThe identifier does not include outlines or boxes which are not part of the logo.\n\n22. An identifier must appear at least once on the external surface of each item of occupational clothing including accessories. In addition, the occupational clothing must be designed to ensure that when two or more items are worn together at least one 'stand alone' identifier or an approved identifier pattern should be plainly visible to the casual observer. Furthermore, the clothing must not, after the addition of identifiers, be available for rental or purchase by the general public.","sortOrder":14},{"sectionNumber":"'Stand Alone' Identifiers","sectionType":"part","heading":"'Stand Alone' Identifiers","content":"## 'Stand Alone' Identifiers\n\n23. The identifier must be in a contrasting colour or shade to that used for the item to which it is attached and be of sufficient size to be plainly visible to the casual observer from a distance of two metres. The employer, product or service depicted must also be easily identifiable from the same distance. The minimum size of stand alone identifiers to be used are:\n\n(a) Clothing items: The stand alone identifier should be sufficient to cover 80% of a 4 square centimetre area (eg 2 cm x 2 cm, 1 cm x 4 cm etc.) This will allow identifiers of different shapes to qualify.\n\n(b) Accessories: The stand alone identifier should cover a 1 square centimetre area.\n\nThese are minimum qualifications only, and the identifiers may be larger.\n\n24. A 'stand alone' identifier must be permanently affixed by being, for example, ironed on, sewn down on all sides, embroidered into, or printed onto an item of clothing. Detachable badges, pins, buttons and flag tags sewn into seams are not acceptable and will not qualify clothing for entry on the Register.","sortOrder":15},{"sectionNumber":"Pattern Identifiers","sectionType":"part","heading":"Pattern Identifiers","content":"## Pattern Identifiers\n\n25. A pattern of identifiers, usually used as a print, may be used in place of a stand alone identifier provided that:\n\n(a) identifiers used in the pattern are, of a contrasting colour to the main background colour, a minimum size of 1 cm x 1 cm and there are a minimum of three such identifiers in an area of material measuring 15 cm x 15 cm; and\n\n(b) the employer, product or service depicted is easily identifiable from a distance of two metres.\n\n26. It will not be sufficient that a pattern is used exclusively by an employer if the employer, product or service cannot be distinguished by that pattern. Thus, the pattern must be used by the employer in a manner similar to advertising so that the public readily recognises it. (It is accepted that new identifiers or patterns may take some time to be readily recognised by the public and this will not detract from the acceptance of the identifier or pattern.) For example, the yellow and black square and the red bullseye, used by two well known organisations.","sortOrder":16},{"sectionNumber":"Colours","sectionType":"part","heading":"Colours","content":"## Colours\n\n27. The use of a large number of colours would make it difficult to say that a design is distinctive. Therefore, the total number of colours or shades used in the design (including highlight colours but not including the colours used in identifiers) must be limited to a maximum of eight including black and white.\n\n28. There must be a common theme of colours, patterns and prints applying between:\n\n(a) the male and female designs; and\n\n(b) the designs for each class of employee.\n\nIn general, this criterion applies in respect of an employer. The only exceptions are:\n\n(i) where it is a requirement for safety reasons for employees in different classes to be easily identifiable; or\n\n(ii) where the employer maintains separate public identities for parts of its organisation, the employer may elect for this criterion to apply separately to each part of the organisation.\n\n29. The limitation on the number of colours to be used in the design is not affected by the weight or construction of the fabric, its content, or whether it is knitted or woven, eg. a navy woven skirt and matching navy knitwear would be considered to be one plain colour only.\n\n30. The number of colour/pattern/print combinations available for use by an employer is limited by the number of employees in the class that the clothing has been designed for. This is to ensure that the uniform is cohesive and the corporate, product or service identity obvious. The following table sets out how many colour/pattern/print combinations are allowed for an employer with a particular number of employees in the class that the clothing has been designed for. For example, an employer with 600 employees in the same class may use the number of colour/pattern/print combinations in the second column of the table below (101‑3,000 employees). If the uniform utilised the colours navy and white, the five colour/pattern/print combinations for the shirts could be:\n\n1) Navy 2) White 3)Navy/White Dots\n\n4) Navy/White Stripes 5) Navy/White Floral Print\n\nNumber of colour/pattern/print combinations available to be allowed a tax deduction:\n\n```html\n

Total Number of Employees in a Class

1 -

100

101 -

3,000

3,001 -

10,000

Over

10,000

Males

Full body garments

Overalls etc.

2

3

4

6

Outer, upper body garments

Jackets/knitwear etc.

2

3

4

5

Inner, upper body garments

Shirts/t shirts etc.

3

5

7

8

Lower body garments

Pants/trousers/shorts etc.

2

3

4

5

Females

Full Body Garments

Overalls/dresses etc.

2

3

4

6

Outer, upper body garments

Jackets/knitwear etc.

2

3

4

5

Inner, upper body garments

Blouses/shirts/t shirts etc.

3

5

6

8

Lower body garments

Pants/trousers/skirts/shorts etc.

2

4

6

7

\n```","sortOrder":17},{"sectionNumber":"Range","sectionType":"part","heading":"Range","content":"## Range\n\n31. Provided that each item of clothing in each design has the identifiers, as outlined in clauses 21 to 26 above, attached and the colour/pattern/print combinations are within the permissible numbers outlined in the table at Clause 30, there is no limit to the number of styles that can be used for any one item of clothing. Style in this sense means for example an A line skirt, pleated skirt, short sleeved shirt, collarless shirt etc. Therefore in the example at Clause 30 the navy shirt may come in long or short sleeves and still only count as one colour/pattern/print combination. However, should the shirt have a white collar or trim that would count as a separate colour/pattern/print combination. The use of white buttons, or up to two lines of white running stitch as a trim would mean that the navy shirt would still only count as one colour/pattern/print combination.","sortOrder":18},{"sectionNumber":"Durability","sectionType":"part","heading":"Durability","content":"## Durability\n\n32. Changes in colours, identifiers and patterns can detract from the design's ability to be easily recognised as approved occupational clothing and therefore also detract from its distinctive look. It is expected that the overall look or concept of an approved occupational clothing design must be able to last between three to five years and not be changed merely to follow the latest fashions.\n\n33. However, this requirement will not of itself prevent gradual changes to any design that does not disturb the overall look of that design, or prevent an employer totally changing its design(s) if it wishes to change its 'corporate' identity or consumer/public perceptions about the employing organisation or its employees.","sortOrder":19},{"sectionNumber":"Changes to Designs","sectionType":"part","heading":"Changes to Designs","content":"## Changes to Designs\n\n34. Each change or variation of a design (but excluding changes of style only) must be approved by the administering authority. Once a design is changed, either in total or just an item or two, it would be expected that the employer would, within a period of 12 months, request that the superseded design or items be removed from the Register. The costs of rental, purchase or maintenance of the superseded design or items, incurred by employees, will cease to be eligible for tax deductibility from the date of the removal of the design or item from the Register.\n\n35. It is therefore necessary for the employer to nominate which design or item is being replaced by the new variation.\n\n36. Where a design change is proposed for more than one item of clothing, all changes must be presented for approval at the one time.","sortOrder":20},{"sectionNumber":"Accessories","sectionType":"part","heading":"Accessories","content":"## Accessories\n\n37. Accessories such as belts, ties, handkerchiefs, long walk socks (for wearing with shorts), handbags, briefcases, trench coats, raincoats, scarves, tie pins/clips, scrunchies, bow ties, umbrellas, head/sweat bands and hats which are made of the same distinctively patterned fabrics as the other items in the design, or have a 'stand alone' identifier, will form part of the design.\n\n38. Shoes, short socks, stockings and underwear will not form part of approved occupational clothing in any circumstance.","sortOrder":21},{"sectionNumber":"DEFINITIONS","sectionType":"part","heading":"DEFINITIONS","content":"APPROVED OCCUPATIONAL CLOTHING GUIDELINES 2017\n\nCONTENTS\n\n| | Clause |\n| --- | ------ |\n\nINTRODUCTION 1\n\nLEGISLATIVE AUTHORITY 4\n\nDEDUCTIBILITY OF EXPENDITURE 6\n\nREGISTER OF APPROVED OCCUPATIONAL CLOTHING\n\nBackground 11\n\nBenefits of Registration 12\n\nContents 13\n\nRegistration of Employers and Occupational Clothing Designs 14\n\nRegistration Procedure 15\n\nAccess to the Register 16\n\nREGISTRATION CRITERIA 17\n\nFACTORS TO BE CONSIDERED\n\nNature of the Employer's Business or Activities 19\n\nSingle Items of Clothing 20\n\nCorporate, Product or Service Identifiers 21\n\n'Stand Alone' Identifiers 23\n\nPattern Identifiers 25\n\nColours 27\n\nRange 31\n\nDurability 32\n\nChanges to Designs 34\n\nAccessories 37\n\nDEFINITIONS\n\nClass of Employees 39\n\nEmployees 40\n\nCompulsory Occupational Clothing 41\n\nCorporate 42\n\nCorporate, Product or Service Identifiers 43\n\nDesign 44\n\nOccupational Clothing 47\n\nOccupation Specific Clothing 48\n\nProtective Clothing 51\n\nCONTACT ADDRESSES 54\n\n \nAPPROVED OCCUPATIONAL CLOTHING GUIDELINES 2017\n\n# INTRODUCTION\n\n1. 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).\n\n2. These Guidelines outline:\n\n(a) the tax law as it relates to occupational clothing;\n\n(b) the steps that need to be undertaken by employers to have designs of occupational clothing registered; and\n\n(c) the factors that will be considered in determining whether designs of occupational clothing may be registered.\n\n3. These Guidelines commence on the day after they are registered on the Federal Register of Legislation.\n\n# LEGISLATIVE AUTHORITY\n\n4. 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:\n\n(a) the clothing is in the nature of \\*occupation specific, or \\*protective clothing; or\n\n(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\n\n(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).\n\n5. The meanings of the highlighted words used in Clause 4 above are contained in the 'Definitions' section of these Guidelines.\n\n \n\n# DEDUCTIBILITY OF EXPENDITURE\n\n6. 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.\n\n7. 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.\n\n8. 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.\n\n9. 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.\n\n10. Details regarding the substantiation requirements of the Act are available from your local Australian Taxation Office.\n\n# REGISTER OF APPROVED OCCUPATIONAL CLOTHING\n\n## Background\n\n11. 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.\n\n## Benefits of Registration\n\n12. 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.\n\n## Contents\n\n13. 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 register designs of non-compulsory uniforms (section 34-30) and maintaining the Register (section 34-45). The Secretary can delegate those functions to employees of a certain level within the Department (section 34-65).\n\n## Registration of Employers and Occupational Clothing Designs\n\n14. Employers who introduce occupational clothing must apply to have the design entered on the Register if expenses incurred by employees in the rental, purchase or maintenance of the clothing are to be eligible for tax deduction. Registration will also ensure that employers are not subject to Fringe Benefits Tax in situations where the clothing is provided free or at discounted prices to employees.\n\n## Registration Procedure\n\n15. Employers must submit a request for registration of their design on the application form available from the administering authority. All details required on the form must be provided in order that a full assessment of the eligibility of the design can be undertaken. An incomplete form will be returned for completion. This will delay registration.\n\n## Access to the Register\n\n16. Any person may inspect, at any reasonable time, the information on the Register held by the administering authority. The contact details for the administering authority, AusIndustry, (a division of the Industry Department) are at the end of these guidelines.\n\n# REGISTRATION CRITERIA\n\n17. Whether clothing constitutes \\*approved occupational clothing is a question of fact and impression that can only be determined on a case by case basis in the light of all the circumstances.\n\n18. For applications for a \\*design to be entered on the Register to succeed the design, as a whole, must have a distinctive look and a cohesive and obvious identity. If the clothing is considered to be simply a collection of conventional clothing items the application for registration will fail. In addition, tax deductions will not be allowable for the expenses incurred in the rental, purchase or maintenance of the clothing and the employer may be subject to Fringe Benefits Tax if the clothing is supplied to employees without cost or at a reduced cost.\n\n# \n\n# FACTORS TO BE CONSIDERED\n\n## Nature of the Employer's Business or Activities\n\n19. The nature of the employer's business or activities will be considered when determining the suitability of the designs that make up the approved occupational clothing. For example, items of clothing that may be suitable for a business operating in an office environment may not be suitable for activities carried on at a plant nursery or a boat building factory.\n\n## Single Items of Clothing\n\n20. Single items of occupational clothing, other than full body garments (such as dresses), will not be admitted to the Register. Consequently, expenditure on such items is ineligible for deductibility under section 8-1 of the Act.\n\n## Corporate, Product or Service Identifiers\n\n21. Corporate, product or service identifiers are a compulsory requirement for any design seeking admission to the Register. There are two types of identifiers:\n\n(a) stand alone - a corporate, product or service identifier which is a discreet symbol, logo, initial, form of words etc. and which is distinct from the item of clothing to which it is affixed; and\n\n(b) pattern - a corporate, product or service identifier which is used in the form of a distinctive pattern over the entire item of clothing and which forms an integral part of that clothing.\n\nThe identifier does not include outlines or boxes which are not part of the logo.\n\n22. An identifier must appear at least once on the external surface of each item of occupational clothing including accessories. In addition, the occupational clothing must be designed to ensure that when two or more items are worn together at least one 'stand alone' identifier or an approved identifier pattern should be plainly visible to the casual observer. Furthermore, the clothing must not, after the addition of identifiers, be available for rental or purchase by the general public.\n\n## 'Stand Alone' Identifiers\n\n23. The identifier must be in a contrasting colour or shade to that used for the item to which it is attached and be of sufficient size to be plainly visible to the casual observer from a distance of two metres. The employer, product or service depicted must also be easily identifiable from the same distance. The minimum size of stand alone identifiers to be used are:\n\n(a) Clothing items: The stand alone identifier should be sufficient to cover 80% of a 4 square centimetre area (eg 2 cm x 2 cm, 1 cm x 4 cm etc.) This will allow identifiers of different shapes to qualify.\n\n(b) Accessories: The stand alone identifier should cover a 1 square centimetre area.\n\nThese are minimum qualifications only, and the identifiers may be larger.\n\n24. A 'stand alone' identifier must be permanently affixed by being, for example, ironed on, sewn down on all sides, embroidered into, or printed onto an item of clothing. Detachable badges, pins, buttons and flag tags sewn into seams are not acceptable and will not qualify clothing for entry on the Register.\n\n## Pattern Identifiers\n\n25. A pattern of identifiers, usually used as a print, may be used in place of a stand alone identifier provided that:\n\n(a) identifiers used in the pattern are, of a contrasting colour to the main background colour, a minimum size of 1 cm x 1 cm and there are a minimum of three such identifiers in an area of material measuring 15 cm x 15 cm; and\n\n(b) the employer, product or service depicted is easily identifiable from a distance of two metres.\n\n26. It will not be sufficient that a pattern is used exclusively by an employer if the employer, product or service cannot be distinguished by that pattern. Thus, the pattern must be used by the employer in a manner similar to advertising so that the public readily recognises it. (It is accepted that new identifiers or patterns may take some time to be readily recognised by the public and this will not detract from the acceptance of the identifier or pattern.) For example, the yellow and black square and the red bullseye, used by two well known organisations.\n\n## Colours\n\n27. The use of a large number of colours would make it difficult to say that a design is distinctive. Therefore, the total number of colours or shades used in the design (including highlight colours but not including the colours used in identifiers) must be limited to a maximum of eight including black and white.\n\n28. There must be a common theme of colours, patterns and prints applying between:\n\n(a) the male and female designs; and\n\n(b) the designs for each class of employee.\n\nIn general, this criterion applies in respect of an employer. The only exceptions are:\n\n(i) where it is a requirement for safety reasons for employees in different classes to be easily identifiable; or\n\n(ii) where the employer maintains separate public identities for parts of its organisation, the employer may elect for this criterion to apply separately to each part of the organisation.\n\n29. The limitation on the number of colours to be used in the design is not affected by the weight or construction of the fabric, its content, or whether it is knitted or woven, eg. a navy woven skirt and matching navy knitwear would be considered to be one plain colour only.\n\n30. The number of colour/pattern/print combinations available for use by an employer is limited by the number of employees in the class that the clothing has been designed for. This is to ensure that the uniform is cohesive and the corporate, product or service identity obvious. The following table sets out how many colour/pattern/print combinations are allowed for an employer with a particular number of employees in the class that the clothing has been designed for. For example, an employer with 600 employees in the same class may use the number of colour/pattern/print combinations in the second column of the table below (101‑3,000 employees). If the uniform utilised the colours navy and white, the five colour/pattern/print combinations for the shirts could be:\n\n1) Navy 2) White 3)Navy/White Dots\n\n4) Navy/White Stripes 5) Navy/White Floral Print\n\nNumber of colour/pattern/print combinations available to be allowed a tax deduction:\n\n```html\n

Total Number of Employees in a Class

1 -

100

101 -

3,000

3,001 -

10,000

Over

10,000

Males

Full body garments

Overalls etc.

2

3

4

6

Outer, upper body garments

Jackets/knitwear etc.

2

3

4

5

Inner, upper body garments

Shirts/t shirts etc.

3

5

7

8

Lower body garments

Pants/trousers/shorts etc.

2

3

4

5

Females

Full Body Garments

Overalls/dresses etc.

2

3

4

6

Outer, upper body garments

Jackets/knitwear etc.

2

3

4

5

Inner, upper body garments

Blouses/shirts/t shirts etc.

3

5

6

8

Lower body garments

Pants/trousers/skirts/shorts etc.

2

4

6

7

\n```\n\n## Range\n\n31. Provided that each item of clothing in each design has the identifiers, as outlined in clauses 21 to 26 above, attached and the colour/pattern/print combinations are within the permissible numbers outlined in the table at Clause 30, there is no limit to the number of styles that can be used for any one item of clothing. Style in this sense means for example an A line skirt, pleated skirt, short sleeved shirt, collarless shirt etc. Therefore in the example at Clause 30 the navy shirt may come in long or short sleeves and still only count as one colour/pattern/print combination. However, should the shirt have a white collar or trim that would count as a separate colour/pattern/print combination. The use of white buttons, or up to two lines of white running stitch as a trim would mean that the navy shirt would still only count as one colour/pattern/print combination.\n\n## Durability\n\n32. Changes in colours, identifiers and patterns can detract from the design's ability to be easily recognised as approved occupational clothing and therefore also detract from its distinctive look. It is expected that the overall look or concept of an approved occupational clothing design must be able to last between three to five years and not be changed merely to follow the latest fashions.\n\n33. However, this requirement will not of itself prevent gradual changes to any design that does not disturb the overall look of that design, or prevent an employer totally changing its design(s) if it wishes to change its 'corporate' identity or consumer/public perceptions about the employing organisation or its employees.\n\n## Changes to Designs\n\n34. Each change or variation of a design (but excluding changes of style only) must be approved by the administering authority. Once a design is changed, either in total or just an item or two, it would be expected that the employer would, within a period of 12 months, request that the superseded design or items be removed from the Register. The costs of rental, purchase or maintenance of the superseded design or items, incurred by employees, will cease to be eligible for tax deductibility from the date of the removal of the design or item from the Register.\n\n35. It is therefore necessary for the employer to nominate which design or item is being replaced by the new variation.\n\n36. Where a design change is proposed for more than one item of clothing, all changes must be presented for approval at the one time.\n\n## Accessories\n\n37. Accessories such as belts, ties, handkerchiefs, long walk socks (for wearing with shorts), handbags, briefcases, trench coats, raincoats, scarves, tie pins/clips, scrunchies, bow ties, umbrellas, head/sweat bands and hats which are made of the same distinctively patterned fabrics as the other items in the design, or have a 'stand alone' identifier, will form part of the design.\n\n38. Shoes, short socks, stockings and underwear will not form part of approved occupational clothing in any circumstance.\n\n# DEFINITIONS\n\n## Class of Employees\n\n## 39. Class of employees is a class of employees based on the level or category of work.\n\n## Employee\n\n40. Employee in subsection 34-5(1) of the Act includes 'an individual who is an employee as well as an individual who receives, or is entitled to receive, withholding payments covered by subsection 34-5(3) of the Act. That subsection refers to withholding payments on payments to a company director or an office holder as well as return to work payments and benefit, training and compensation payments.\n\n## Compulsory Occupational Clothing\n\n41. Compulsory occupational clothing is clothing which is not conventional in nature and which an employer has prescribed in an express policy stating that there is a requirement or compulsion to wear the clothing by employees. That policy must also be consistently enforced by the employer.\n\n## Corporate\n\n42. The word 'corporate', in the phrase 'corporate product or service identifiers', is used to refer to both incorporated and unincorporated bodies and applies to trusts, partnerships, joint venturers and sole traders who introduce occupational clothing for their staff. There is no specific limit on the number of employees for whom a design may be introduced. For example, a corner store which employs three or four people could, if it wishes, introduce occupational clothing.\n\n## Corporate, Product or Service Identifiers\n\n43. Corporate, product or service identifiers are features which readily identify a particular organisation, product or service and include such things as well known, specific or registered trade marks, logos, initials, insignia, emblems, arms, and patterns. They may be a 'stand alone' feature (eg. an insignia on a blazer) or they may be a common feature (eg. a pattern in fabric consisting of employer's logo).\n\n## Design\n\n44. Subsection 34-25(2) of the Act states that 'design of a uniform includes features such as its colouring, construction, durability, ornamentation, pattern and shape'.\n\n45. Where an organisation operates over a wide climatic area, it may be necessary for the design of the occupational clothing to take into account the climate for which it is intended. For example an employer who has operations in both southern Tasmania and far north Queensland may wish to submit 4 designs - 1 winter and 1 summer design for each climatic region.\n\n46. A design may also be used as a means of distinguishing between various staffing groups within an organisation eg. a set of clothing items used by office staff may differ from the set used by field staff. In these cases, the factors listed in these Guidelines should be considered in the context of the collection which applies to each separate staffing group within the organisation and entered separately on the Register. For example, the collection to be worn by the office staff should be considered separately to that worn by technicians in the field.\n\n## Occupational Clothing\n\n47. Occupational clothing is a set of one or more items of clothing and accessories (other than protective or occupation specific clothing) which distinctively identify a particular employing organisation, product or service and which employees are encouraged by their employer to acquire and wear at work, but are under no compulsion to do so.\n\n## Occupation Specific Clothing\n\n48. Subsection 34-20(1) of the Act provides a definition of occupation specific clothing.\n\nThis definition states, in part, that occupation specific clothing is 'clothing that distinctively identifies the employee as belonging to a particular profession, trade, vocation, occupation or calling'.\n\n49. Examples of clothing that fall into this category are chef's checked pants and cleric's robes.\n\n50. Expenditure on items of clothing which are occupation specific in nature is subject to the requirements of section 8-1 of the Act to be deductible. This type of clothing is not covered by these Guidelines.\n\n## Protective Clothing\n\n51. 'Protective clothing' is defined in subsection 34-20(2) of the Act. It is clothing of a kind that you mainly use to protect yourself, or someone else, from risk of:\n\n(a) death; or\n\n(b) disease (including the contraction, aggravation, acceleration or recurrence of a disease); or\n\n(c) injury (including the aggravation, acceleration or recurrence of an injury); or\n\n(d) damage to clothing; or\n\n(e) damage to an artificial limb or other artificial substitute, or to a medical, surgical or other similar aid or appliance.\n\n52. Examples of clothing that fall into this category are overalls, aprons, goggles, shields, hard hats and safety boots. When considering whether an item constitutes 'protective clothing' regard must be had to the nature of the business or activities carried on by the employer. For example, a mechanic's overalls would be protective however, designer overalls worn by a salesperson in a clothes shop would not.\n\n53. Expenditure on items of clothing which are protective in nature is, subject to the requirements of section 8-1 of the Act, deductible. This type of clothing is not covered by these Guidelines.\n\n# CONTACT ADDRESSES\n\n54. AusIndustry\n\nRegister of Approved Occupational Clothing\n\nLevel 5 \n111 Burke Street \nMELBOURNE VIC 3000\n\nPostal Address:\n\nAusIndustry\n\nRegister of Approved Occupational Clothing\n\nGPO Box 2013\n\nCANBERRA ACT 2601\n\nTelephone: (03) 9268 7944\n\nFacsimile: (03) 9268 7999\n\nInternet Access: www.business.gov.au\n\n55. All enquiries regarding the following matters should be directed to your local Australian Taxation Office:\n\n\\- compulsory occupational clothing;\n\n\\- occupation specific clothing;\n\n\\- protective clothing; and\n\n\\- the availability of tax deductions on all types of occupational clothing.","sortOrder":22},{"sectionNumber":"Class of Employees","sectionType":"part","heading":"Class of Employees","content":"APPROVED OCCUPATIONAL CLOTHING GUIDELINES 2017\n\nCONTENTS\n\n| | Clause |\n| --- | ------ |\n\nINTRODUCTION 1\n\nLEGISLATIVE AUTHORITY 4\n\nDEDUCTIBILITY OF EXPENDITURE 6\n\nREGISTER OF APPROVED OCCUPATIONAL CLOTHING\n\nBackground 11\n\nBenefits of Registration 12\n\nContents 13\n\nRegistration of Employers and Occupational Clothing Designs 14\n\nRegistration Procedure 15\n\nAccess to the Register 16\n\nREGISTRATION CRITERIA 17\n\nFACTORS TO BE CONSIDERED\n\nNature of the Employer's Business or Activities 19\n\nSingle Items of Clothing 20\n\nCorporate, Product or Service Identifiers 21\n\n'Stand Alone' Identifiers 23\n\nPattern Identifiers 25\n\nColours 27\n\nRange 31\n\nDurability 32\n\nChanges to Designs 34\n\nAccessories 37\n\nDEFINITIONS\n\nClass of Employees 39\n\nEmployees 40\n\nCompulsory Occupational Clothing 41\n\nCorporate 42\n\nCorporate, Product or Service Identifiers 43\n\nDesign 44\n\nOccupational Clothing 47\n\nOccupation Specific Clothing 48\n\nProtective Clothing 51\n\nCONTACT ADDRESSES 54\n\n \nAPPROVED OCCUPATIONAL CLOTHING GUIDELINES 2017\n\n# INTRODUCTION\n\n1. 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).\n\n2. These Guidelines outline:\n\n(a) the tax law as it relates to occupational clothing;\n\n(b) the steps that need to be undertaken by employers to have designs of occupational clothing registered; and\n\n(c) the factors that will be considered in determining whether designs of occupational clothing may be registered.\n\n3. These Guidelines commence on the day after they are registered on the Federal Register of Legislation.\n\n# LEGISLATIVE AUTHORITY\n\n4. 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:\n\n(a) the clothing is in the nature of \\*occupation specific, or \\*protective clothing; or\n\n(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\n\n(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).\n\n5. The meanings of the highlighted words used in Clause 4 above are contained in the 'Definitions' section of these Guidelines.\n\n \n\n# DEDUCTIBILITY OF EXPENDITURE\n\n6. 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.\n\n7. 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.\n\n8. 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.\n\n9. 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.\n\n10. Details regarding the substantiation requirements of the Act are available from your local Australian Taxation Office.\n\n# REGISTER OF APPROVED OCCUPATIONAL CLOTHING\n\n## Background\n\n11. 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.\n\n## Benefits of Registration\n\n12. 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.\n\n## Contents\n\n13. 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 register designs of non-compulsory uniforms (section 34-30) and maintaining the Register (section 34-45). The Secretary can delegate those functions to employees of a certain level within the Department (section 34-65).\n\n## Registration of Employers and Occupational Clothing Designs\n\n14. Employers who introduce occupational clothing must apply to have the design entered on the Register if expenses incurred by employees in the rental, purchase or maintenance of the clothing are to be eligible for tax deduction. Registration will also ensure that employers are not subject to Fringe Benefits Tax in situations where the clothing is provided free or at discounted prices to employees.\n\n## Registration Procedure\n\n15. Employers must submit a request for registration of their design on the application form available from the administering authority. All details required on the form must be provided in order that a full assessment of the eligibility of the design can be undertaken. An incomplete form will be returned for completion. This will delay registration.\n\n## Access to the Register\n\n16. Any person may inspect, at any reasonable time, the information on the Register held by the administering authority. The contact details for the administering authority, AusIndustry, (a division of the Industry Department) are at the end of these guidelines.\n\n# REGISTRATION CRITERIA\n\n17. Whether clothing constitutes \\*approved occupational clothing is a question of fact and impression that can only be determined on a case by case basis in the light of all the circumstances.\n\n18. For applications for a \\*design to be entered on the Register to succeed the design, as a whole, must have a distinctive look and a cohesive and obvious identity. If the clothing is considered to be simply a collection of conventional clothing items the application for registration will fail. In addition, tax deductions will not be allowable for the expenses incurred in the rental, purchase or maintenance of the clothing and the employer may be subject to Fringe Benefits Tax if the clothing is supplied to employees without cost or at a reduced cost.\n\n# \n\n# FACTORS TO BE CONSIDERED\n\n## Nature of the Employer's Business or Activities\n\n19. The nature of the employer's business or activities will be considered when determining the suitability of the designs that make up the approved occupational clothing. For example, items of clothing that may be suitable for a business operating in an office environment may not be suitable for activities carried on at a plant nursery or a boat building factory.\n\n## Single Items of Clothing\n\n20. Single items of occupational clothing, other than full body garments (such as dresses), will not be admitted to the Register. Consequently, expenditure on such items is ineligible for deductibility under section 8-1 of the Act.\n\n## Corporate, Product or Service Identifiers\n\n21. Corporate, product or service identifiers are a compulsory requirement for any design seeking admission to the Register. There are two types of identifiers:\n\n(a) stand alone - a corporate, product or service identifier which is a discreet symbol, logo, initial, form of words etc. and which is distinct from the item of clothing to which it is affixed; and\n\n(b) pattern - a corporate, product or service identifier which is used in the form of a distinctive pattern over the entire item of clothing and which forms an integral part of that clothing.\n\nThe identifier does not include outlines or boxes which are not part of the logo.\n\n22. An identifier must appear at least once on the external surface of each item of occupational clothing including accessories. In addition, the occupational clothing must be designed to ensure that when two or more items are worn together at least one 'stand alone' identifier or an approved identifier pattern should be plainly visible to the casual observer. Furthermore, the clothing must not, after the addition of identifiers, be available for rental or purchase by the general public.\n\n## 'Stand Alone' Identifiers\n\n23. The identifier must be in a contrasting colour or shade to that used for the item to which it is attached and be of sufficient size to be plainly visible to the casual observer from a distance of two metres. The employer, product or service depicted must also be easily identifiable from the same distance. The minimum size of stand alone identifiers to be used are:\n\n(a) Clothing items: The stand alone identifier should be sufficient to cover 80% of a 4 square centimetre area (eg 2 cm x 2 cm, 1 cm x 4 cm etc.) This will allow identifiers of different shapes to qualify.\n\n(b) Accessories: The stand alone identifier should cover a 1 square centimetre area.\n\nThese are minimum qualifications only, and the identifiers may be larger.\n\n24. A 'stand alone' identifier must be permanently affixed by being, for example, ironed on, sewn down on all sides, embroidered into, or printed onto an item of clothing. Detachable badges, pins, buttons and flag tags sewn into seams are not acceptable and will not qualify clothing for entry on the Register.\n\n## Pattern Identifiers\n\n25. A pattern of identifiers, usually used as a print, may be used in place of a stand alone identifier provided that:\n\n(a) identifiers used in the pattern are, of a contrasting colour to the main background colour, a minimum size of 1 cm x 1 cm and there are a minimum of three such identifiers in an area of material measuring 15 cm x 15 cm; and\n\n(b) the employer, product or service depicted is easily identifiable from a distance of two metres.\n\n26. It will not be sufficient that a pattern is used exclusively by an employer if the employer, product or service cannot be distinguished by that pattern. Thus, the pattern must be used by the employer in a manner similar to advertising so that the public readily recognises it. (It is accepted that new identifiers or patterns may take some time to be readily recognised by the public and this will not detract from the acceptance of the identifier or pattern.) For example, the yellow and black square and the red bullseye, used by two well known organisations.\n\n## Colours\n\n27. The use of a large number of colours would make it difficult to say that a design is distinctive. Therefore, the total number of colours or shades used in the design (including highlight colours but not including the colours used in identifiers) must be limited to a maximum of eight including black and white.\n\n28. There must be a common theme of colours, patterns and prints applying between:\n\n(a) the male and female designs; and\n\n(b) the designs for each class of employee.\n\nIn general, this criterion applies in respect of an employer. The only exceptions are:\n\n(i) where it is a requirement for safety reasons for employees in different classes to be easily identifiable; or\n\n(ii) where the employer maintains separate public identities for parts of its organisation, the employer may elect for this criterion to apply separately to each part of the organisation.\n\n29. The limitation on the number of colours to be used in the design is not affected by the weight or construction of the fabric, its content, or whether it is knitted or woven, eg. a navy woven skirt and matching navy knitwear would be considered to be one plain colour only.\n\n30. The number of colour/pattern/print combinations available for use by an employer is limited by the number of employees in the class that the clothing has been designed for. This is to ensure that the uniform is cohesive and the corporate, product or service identity obvious. The following table sets out how many colour/pattern/print combinations are allowed for an employer with a particular number of employees in the class that the clothing has been designed for. For example, an employer with 600 employees in the same class may use the number of colour/pattern/print combinations in the second column of the table below (101‑3,000 employees). If the uniform utilised the colours navy and white, the five colour/pattern/print combinations for the shirts could be:\n\n1) Navy 2) White 3)Navy/White Dots\n\n4) Navy/White Stripes 5) Navy/White Floral Print\n\nNumber of colour/pattern/print combinations available to be allowed a tax deduction:\n\n```html\n

Total Number of Employees in a Class

1 -

100

101 -

3,000

3,001 -

10,000

Over

10,000

Males

Full body garments

Overalls etc.

2

3

4

6

Outer, upper body garments

Jackets/knitwear etc.

2

3

4

5

Inner, upper body garments

Shirts/t shirts etc.

3

5

7

8

Lower body garments

Pants/trousers/shorts etc.

2

3

4

5

Females

Full Body Garments

Overalls/dresses etc.

2

3

4

6

Outer, upper body garments

Jackets/knitwear etc.

2

3

4

5

Inner, upper body garments

Blouses/shirts/t shirts etc.

3

5

6

8

Lower body garments

Pants/trousers/skirts/shorts etc.

2

4

6

7

\n```\n\n## Range\n\n31. Provided that each item of clothing in each design has the identifiers, as outlined in clauses 21 to 26 above, attached and the colour/pattern/print combinations are within the permissible numbers outlined in the table at Clause 30, there is no limit to the number of styles that can be used for any one item of clothing. Style in this sense means for example an A line skirt, pleated skirt, short sleeved shirt, collarless shirt etc. Therefore in the example at Clause 30 the navy shirt may come in long or short sleeves and still only count as one colour/pattern/print combination. However, should the shirt have a white collar or trim that would count as a separate colour/pattern/print combination. The use of white buttons, or up to two lines of white running stitch as a trim would mean that the navy shirt would still only count as one colour/pattern/print combination.\n\n## Durability\n\n32. Changes in colours, identifiers and patterns can detract from the design's ability to be easily recognised as approved occupational clothing and therefore also detract from its distinctive look. It is expected that the overall look or concept of an approved occupational clothing design must be able to last between three to five years and not be changed merely to follow the latest fashions.\n\n33. However, this requirement will not of itself prevent gradual changes to any design that does not disturb the overall look of that design, or prevent an employer totally changing its design(s) if it wishes to change its 'corporate' identity or consumer/public perceptions about the employing organisation or its employees.\n\n## Changes to Designs\n\n34. Each change or variation of a design (but excluding changes of style only) must be approved by the administering authority. Once a design is changed, either in total or just an item or two, it would be expected that the employer would, within a period of 12 months, request that the superseded design or items be removed from the Register. The costs of rental, purchase or maintenance of the superseded design or items, incurred by employees, will cease to be eligible for tax deductibility from the date of the removal of the design or item from the Register.\n\n35. It is therefore necessary for the employer to nominate which design or item is being replaced by the new variation.\n\n36. Where a design change is proposed for more than one item of clothing, all changes must be presented for approval at the one time.\n\n## Accessories\n\n37. Accessories such as belts, ties, handkerchiefs, long walk socks (for wearing with shorts), handbags, briefcases, trench coats, raincoats, scarves, tie pins/clips, scrunchies, bow ties, umbrellas, head/sweat bands and hats which are made of the same distinctively patterned fabrics as the other items in the design, or have a 'stand alone' identifier, will form part of the design.\n\n38. Shoes, short socks, stockings and underwear will not form part of approved occupational clothing in any circumstance.\n\n# DEFINITIONS\n\n## Class of Employees\n\n## 39. Class of employees is a class of employees based on the level or category of work.\n\n## Employee\n\n40. Employee in subsection 34-5(1) of the Act includes 'an individual who is an employee as well as an individual who receives, or is entitled to receive, withholding payments covered by subsection 34-5(3) of the Act. That subsection refers to withholding payments on payments to a company director or an office holder as well as return to work payments and benefit, training and compensation payments.\n\n## Compulsory Occupational Clothing\n\n41. Compulsory occupational clothing is clothing which is not conventional in nature and which an employer has prescribed in an express policy stating that there is a requirement or compulsion to wear the clothing by employees. That policy must also be consistently enforced by the employer.\n\n## Corporate\n\n42. The word 'corporate', in the phrase 'corporate product or service identifiers', is used to refer to both incorporated and unincorporated bodies and applies to trusts, partnerships, joint venturers and sole traders who introduce occupational clothing for their staff. There is no specific limit on the number of employees for whom a design may be introduced. For example, a corner store which employs three or four people could, if it wishes, introduce occupational clothing.\n\n## Corporate, Product or Service Identifiers\n\n43. Corporate, product or service identifiers are features which readily identify a particular organisation, product or service and include such things as well known, specific or registered trade marks, logos, initials, insignia, emblems, arms, and patterns. They may be a 'stand alone' feature (eg. an insignia on a blazer) or they may be a common feature (eg. a pattern in fabric consisting of employer's logo).\n\n## Design\n\n44. Subsection 34-25(2) of the Act states that 'design of a uniform includes features such as its colouring, construction, durability, ornamentation, pattern and shape'.\n\n45. Where an organisation operates over a wide climatic area, it may be necessary for the design of the occupational clothing to take into account the climate for which it is intended. For example an employer who has operations in both southern Tasmania and far north Queensland may wish to submit 4 designs - 1 winter and 1 summer design for each climatic region.\n\n46. A design may also be used as a means of distinguishing between various staffing groups within an organisation eg. a set of clothing items used by office staff may differ from the set used by field staff. In these cases, the factors listed in these Guidelines should be considered in the context of the collection which applies to each separate staffing group within the organisation and entered separately on the Register. For example, the collection to be worn by the office staff should be considered separately to that worn by technicians in the field.\n\n## Occupational Clothing\n\n47. Occupational clothing is a set of one or more items of clothing and accessories (other than protective or occupation specific clothing) which distinctively identify a particular employing organisation, product or service and which employees are encouraged by their employer to acquire and wear at work, but are under no compulsion to do so.\n\n## Occupation Specific Clothing\n\n48. Subsection 34-20(1) of the Act provides a definition of occupation specific clothing.\n\nThis definition states, in part, that occupation specific clothing is 'clothing that distinctively identifies the employee as belonging to a particular profession, trade, vocation, occupation or calling'.\n\n49. Examples of clothing that fall into this category are chef's checked pants and cleric's robes.\n\n50. Expenditure on items of clothing which are occupation specific in nature is subject to the requirements of section 8-1 of the Act to be deductible. This type of clothing is not covered by these Guidelines.\n\n## Protective Clothing\n\n51. 'Protective clothing' is defined in subsection 34-20(2) of the Act. It is clothing of a kind that you mainly use to protect yourself, or someone else, from risk of:\n\n(a) death; or\n\n(b) disease (including the contraction, aggravation, acceleration or recurrence of a disease); or\n\n(c) injury (including the aggravation, acceleration or recurrence of an injury); or\n\n(d) damage to clothing; or\n\n(e) damage to an artificial limb or other artificial substitute, or to a medical, surgical or other similar aid or appliance.\n\n52. Examples of clothing that fall into this category are overalls, aprons, goggles, shields, hard hats and safety boots. When considering whether an item constitutes 'protective clothing' regard must be had to the nature of the business or activities carried on by the employer. For example, a mechanic's overalls would be protective however, designer overalls worn by a salesperson in a clothes shop would not.\n\n53. Expenditure on items of clothing which are protective in nature is, subject to the requirements of section 8-1 of the Act, deductible. This type of clothing is not covered by these Guidelines.\n\n# CONTACT ADDRESSES\n\n54. AusIndustry\n\nRegister of Approved Occupational Clothing\n\nLevel 5 \n111 Burke Street \nMELBOURNE VIC 3000\n\nPostal Address:\n\nAusIndustry\n\nRegister of Approved Occupational Clothing\n\nGPO Box 2013\n\nCANBERRA ACT 2601\n\nTelephone: (03) 9268 7944\n\nFacsimile: (03) 9268 7999\n\nInternet Access: www.business.gov.au\n\n55. All enquiries regarding the following matters should be directed to your local Australian Taxation Office:\n\n\\- compulsory occupational clothing;\n\n\\- occupation specific clothing;\n\n\\- protective clothing; and\n\n\\- the availability of tax deductions on all types of occupational clothing.","sortOrder":23},{"sectionNumber":"39. Class of employees is a class of emp","sectionType":"part","heading":"39. Class of employees is a class of employees based on the level or category of work.","content":"APPROVED OCCUPATIONAL CLOTHING GUIDELINES 2017\n\nCONTENTS\n\n| | Clause |\n| --- | ------ |\n\nINTRODUCTION 1\n\nLEGISLATIVE AUTHORITY 4\n\nDEDUCTIBILITY OF EXPENDITURE 6\n\nREGISTER OF APPROVED OCCUPATIONAL CLOTHING\n\nBackground 11\n\nBenefits of Registration 12\n\nContents 13\n\nRegistration of Employers and Occupational Clothing Designs 14\n\nRegistration Procedure 15\n\nAccess to the Register 16\n\nREGISTRATION CRITERIA 17\n\nFACTORS TO BE CONSIDERED\n\nNature of the Employer's Business or Activities 19\n\nSingle Items of Clothing 20\n\nCorporate, Product or Service Identifiers 21\n\n'Stand Alone' Identifiers 23\n\nPattern Identifiers 25\n\nColours 27\n\nRange 31\n\nDurability 32\n\nChanges to Designs 34\n\nAccessories 37\n\nDEFINITIONS\n\nClass of Employees 39\n\nEmployees 40\n\nCompulsory Occupational Clothing 41\n\nCorporate 42\n\nCorporate, Product or Service Identifiers 43\n\nDesign 44\n\nOccupational Clothing 47\n\nOccupation Specific Clothing 48\n\nProtective Clothing 51\n\nCONTACT ADDRESSES 54\n\n \nAPPROVED OCCUPATIONAL CLOTHING GUIDELINES 2017\n\n# INTRODUCTION\n\n1. 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).\n\n2. These Guidelines outline:\n\n(a) the tax law as it relates to occupational clothing;\n\n(b) the steps that need to be undertaken by employers to have designs of occupational clothing registered; and\n\n(c) the factors that will be considered in determining whether designs of occupational clothing may be registered.\n\n3. These Guidelines commence on the day after they are registered on the Federal Register of Legislation.\n\n# LEGISLATIVE AUTHORITY\n\n4. 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:\n\n(a) the clothing is in the nature of \\*occupation specific, or \\*protective clothing; or\n\n(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\n\n(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).\n\n5. The meanings of the highlighted words used in Clause 4 above are contained in the 'Definitions' section of these Guidelines.\n\n \n\n# DEDUCTIBILITY OF EXPENDITURE\n\n6. 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.\n\n7. 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.\n\n8. 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.\n\n9. 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.\n\n10. Details regarding the substantiation requirements of the Act are available from your local Australian Taxation Office.\n\n# REGISTER OF APPROVED OCCUPATIONAL CLOTHING\n\n## Background\n\n11. 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.\n\n## Benefits of Registration\n\n12. 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.\n\n## Contents\n\n13. 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 register designs of non-compulsory uniforms (section 34-30) and maintaining the Register (section 34-45). The Secretary can delegate those functions to employees of a certain level within the Department (section 34-65).\n\n## Registration of Employers and Occupational Clothing Designs\n\n14. Employers who introduce occupational clothing must apply to have the design entered on the Register if expenses incurred by employees in the rental, purchase or maintenance of the clothing are to be eligible for tax deduction. Registration will also ensure that employers are not subject to Fringe Benefits Tax in situations where the clothing is provided free or at discounted prices to employees.\n\n## Registration Procedure\n\n15. Employers must submit a request for registration of their design on the application form available from the administering authority. All details required on the form must be provided in order that a full assessment of the eligibility of the design can be undertaken. An incomplete form will be returned for completion. This will delay registration.\n\n## Access to the Register\n\n16. Any person may inspect, at any reasonable time, the information on the Register held by the administering authority. The contact details for the administering authority, AusIndustry, (a division of the Industry Department) are at the end of these guidelines.\n\n# REGISTRATION CRITERIA\n\n17. Whether clothing constitutes \\*approved occupational clothing is a question of fact and impression that can only be determined on a case by case basis in the light of all the circumstances.\n\n18. For applications for a \\*design to be entered on the Register to succeed the design, as a whole, must have a distinctive look and a cohesive and obvious identity. If the clothing is considered to be simply a collection of conventional clothing items the application for registration will fail. In addition, tax deductions will not be allowable for the expenses incurred in the rental, purchase or maintenance of the clothing and the employer may be subject to Fringe Benefits Tax if the clothing is supplied to employees without cost or at a reduced cost.\n\n# \n\n# FACTORS TO BE CONSIDERED\n\n## Nature of the Employer's Business or Activities\n\n19. The nature of the employer's business or activities will be considered when determining the suitability of the designs that make up the approved occupational clothing. For example, items of clothing that may be suitable for a business operating in an office environment may not be suitable for activities carried on at a plant nursery or a boat building factory.\n\n## Single Items of Clothing\n\n20. Single items of occupational clothing, other than full body garments (such as dresses), will not be admitted to the Register. Consequently, expenditure on such items is ineligible for deductibility under section 8-1 of the Act.\n\n## Corporate, Product or Service Identifiers\n\n21. Corporate, product or service identifiers are a compulsory requirement for any design seeking admission to the Register. There are two types of identifiers:\n\n(a) stand alone - a corporate, product or service identifier which is a discreet symbol, logo, initial, form of words etc. and which is distinct from the item of clothing to which it is affixed; and\n\n(b) pattern - a corporate, product or service identifier which is used in the form of a distinctive pattern over the entire item of clothing and which forms an integral part of that clothing.\n\nThe identifier does not include outlines or boxes which are not part of the logo.\n\n22. An identifier must appear at least once on the external surface of each item of occupational clothing including accessories. In addition, the occupational clothing must be designed to ensure that when two or more items are worn together at least one 'stand alone' identifier or an approved identifier pattern should be plainly visible to the casual observer. Furthermore, the clothing must not, after the addition of identifiers, be available for rental or purchase by the general public.\n\n## 'Stand Alone' Identifiers\n\n23. The identifier must be in a contrasting colour or shade to that used for the item to which it is attached and be of sufficient size to be plainly visible to the casual observer from a distance of two metres. The employer, product or service depicted must also be easily identifiable from the same distance. The minimum size of stand alone identifiers to be used are:\n\n(a) Clothing items: The stand alone identifier should be sufficient to cover 80% of a 4 square centimetre area (eg 2 cm x 2 cm, 1 cm x 4 cm etc.) This will allow identifiers of different shapes to qualify.\n\n(b) Accessories: The stand alone identifier should cover a 1 square centimetre area.\n\nThese are minimum qualifications only, and the identifiers may be larger.\n\n24. A 'stand alone' identifier must be permanently affixed by being, for example, ironed on, sewn down on all sides, embroidered into, or printed onto an item of clothing. Detachable badges, pins, buttons and flag tags sewn into seams are not acceptable and will not qualify clothing for entry on the Register.\n\n## Pattern Identifiers\n\n25. A pattern of identifiers, usually used as a print, may be used in place of a stand alone identifier provided that:\n\n(a) identifiers used in the pattern are, of a contrasting colour to the main background colour, a minimum size of 1 cm x 1 cm and there are a minimum of three such identifiers in an area of material measuring 15 cm x 15 cm; and\n\n(b) the employer, product or service depicted is easily identifiable from a distance of two metres.\n\n26. It will not be sufficient that a pattern is used exclusively by an employer if the employer, product or service cannot be distinguished by that pattern. Thus, the pattern must be used by the employer in a manner similar to advertising so that the public readily recognises it. (It is accepted that new identifiers or patterns may take some time to be readily recognised by the public and this will not detract from the acceptance of the identifier or pattern.) For example, the yellow and black square and the red bullseye, used by two well known organisations.\n\n## Colours\n\n27. The use of a large number of colours would make it difficult to say that a design is distinctive. Therefore, the total number of colours or shades used in the design (including highlight colours but not including the colours used in identifiers) must be limited to a maximum of eight including black and white.\n\n28. There must be a common theme of colours, patterns and prints applying between:\n\n(a) the male and female designs; and\n\n(b) the designs for each class of employee.\n\nIn general, this criterion applies in respect of an employer. The only exceptions are:\n\n(i) where it is a requirement for safety reasons for employees in different classes to be easily identifiable; or\n\n(ii) where the employer maintains separate public identities for parts of its organisation, the employer may elect for this criterion to apply separately to each part of the organisation.\n\n29. The limitation on the number of colours to be used in the design is not affected by the weight or construction of the fabric, its content, or whether it is knitted or woven, eg. a navy woven skirt and matching navy knitwear would be considered to be one plain colour only.\n\n30. The number of colour/pattern/print combinations available for use by an employer is limited by the number of employees in the class that the clothing has been designed for. This is to ensure that the uniform is cohesive and the corporate, product or service identity obvious. The following table sets out how many colour/pattern/print combinations are allowed for an employer with a particular number of employees in the class that the clothing has been designed for. For example, an employer with 600 employees in the same class may use the number of colour/pattern/print combinations in the second column of the table below (101‑3,000 employees). If the uniform utilised the colours navy and white, the five colour/pattern/print combinations for the shirts could be:\n\n1) Navy 2) White 3)Navy/White Dots\n\n4) Navy/White Stripes 5) Navy/White Floral Print\n\nNumber of colour/pattern/print combinations available to be allowed a tax deduction:\n\n```html\n

Total Number of Employees in a Class

1 -

100

101 -

3,000

3,001 -

10,000

Over

10,000

Males

Full body garments

Overalls etc.

2

3

4

6

Outer, upper body garments

Jackets/knitwear etc.

2

3

4

5

Inner, upper body garments

Shirts/t shirts etc.

3

5

7

8

Lower body garments

Pants/trousers/shorts etc.

2

3

4

5

Females

Full Body Garments

Overalls/dresses etc.

2

3

4

6

Outer, upper body garments

Jackets/knitwear etc.

2

3

4

5

Inner, upper body garments

Blouses/shirts/t shirts etc.

3

5

6

8

Lower body garments

Pants/trousers/skirts/shorts etc.

2

4

6

7

\n```\n\n## Range\n\n31. Provided that each item of clothing in each design has the identifiers, as outlined in clauses 21 to 26 above, attached and the colour/pattern/print combinations are within the permissible numbers outlined in the table at Clause 30, there is no limit to the number of styles that can be used for any one item of clothing. Style in this sense means for example an A line skirt, pleated skirt, short sleeved shirt, collarless shirt etc. Therefore in the example at Clause 30 the navy shirt may come in long or short sleeves and still only count as one colour/pattern/print combination. However, should the shirt have a white collar or trim that would count as a separate colour/pattern/print combination. The use of white buttons, or up to two lines of white running stitch as a trim would mean that the navy shirt would still only count as one colour/pattern/print combination.\n\n## Durability\n\n32. Changes in colours, identifiers and patterns can detract from the design's ability to be easily recognised as approved occupational clothing and therefore also detract from its distinctive look. It is expected that the overall look or concept of an approved occupational clothing design must be able to last between three to five years and not be changed merely to follow the latest fashions.\n\n33. However, this requirement will not of itself prevent gradual changes to any design that does not disturb the overall look of that design, or prevent an employer totally changing its design(s) if it wishes to change its 'corporate' identity or consumer/public perceptions about the employing organisation or its employees.\n\n## Changes to Designs\n\n34. Each change or variation of a design (but excluding changes of style only) must be approved by the administering authority. Once a design is changed, either in total or just an item or two, it would be expected that the employer would, within a period of 12 months, request that the superseded design or items be removed from the Register. The costs of rental, purchase or maintenance of the superseded design or items, incurred by employees, will cease to be eligible for tax deductibility from the date of the removal of the design or item from the Register.\n\n35. It is therefore necessary for the employer to nominate which design or item is being replaced by the new variation.\n\n36. Where a design change is proposed for more than one item of clothing, all changes must be presented for approval at the one time.\n\n## Accessories\n\n37. Accessories such as belts, ties, handkerchiefs, long walk socks (for wearing with shorts), handbags, briefcases, trench coats, raincoats, scarves, tie pins/clips, scrunchies, bow ties, umbrellas, head/sweat bands and hats which are made of the same distinctively patterned fabrics as the other items in the design, or have a 'stand alone' identifier, will form part of the design.\n\n38. Shoes, short socks, stockings and underwear will not form part of approved occupational clothing in any circumstance.\n\n# DEFINITIONS\n\n## Class of Employees\n\n## 39. Class of employees is a class of employees based on the level or category of work.\n\n## Employee\n\n40. Employee in subsection 34-5(1) of the Act includes 'an individual who is an employee as well as an individual who receives, or is entitled to receive, withholding payments covered by subsection 34-5(3) of the Act. That subsection refers to withholding payments on payments to a company director or an office holder as well as return to work payments and benefit, training and compensation payments.\n\n## Compulsory Occupational Clothing\n\n41. Compulsory occupational clothing is clothing which is not conventional in nature and which an employer has prescribed in an express policy stating that there is a requirement or compulsion to wear the clothing by employees. That policy must also be consistently enforced by the employer.\n\n## Corporate\n\n42. The word 'corporate', in the phrase 'corporate product or service identifiers', is used to refer to both incorporated and unincorporated bodies and applies to trusts, partnerships, joint venturers and sole traders who introduce occupational clothing for their staff. There is no specific limit on the number of employees for whom a design may be introduced. For example, a corner store which employs three or four people could, if it wishes, introduce occupational clothing.\n\n## Corporate, Product or Service Identifiers\n\n43. Corporate, product or service identifiers are features which readily identify a particular organisation, product or service and include such things as well known, specific or registered trade marks, logos, initials, insignia, emblems, arms, and patterns. They may be a 'stand alone' feature (eg. an insignia on a blazer) or they may be a common feature (eg. a pattern in fabric consisting of employer's logo).\n\n## Design\n\n44. Subsection 34-25(2) of the Act states that 'design of a uniform includes features such as its colouring, construction, durability, ornamentation, pattern and shape'.\n\n45. Where an organisation operates over a wide climatic area, it may be necessary for the design of the occupational clothing to take into account the climate for which it is intended. For example an employer who has operations in both southern Tasmania and far north Queensland may wish to submit 4 designs - 1 winter and 1 summer design for each climatic region.\n\n46. A design may also be used as a means of distinguishing between various staffing groups within an organisation eg. a set of clothing items used by office staff may differ from the set used by field staff. In these cases, the factors listed in these Guidelines should be considered in the context of the collection which applies to each separate staffing group within the organisation and entered separately on the Register. For example, the collection to be worn by the office staff should be considered separately to that worn by technicians in the field.\n\n## Occupational Clothing\n\n47. Occupational clothing is a set of one or more items of clothing and accessories (other than protective or occupation specific clothing) which distinctively identify a particular employing organisation, product or service and which employees are encouraged by their employer to acquire and wear at work, but are under no compulsion to do so.\n\n## Occupation Specific Clothing\n\n48. Subsection 34-20(1) of the Act provides a definition of occupation specific clothing.\n\nThis definition states, in part, that occupation specific clothing is 'clothing that distinctively identifies the employee as belonging to a particular profession, trade, vocation, occupation or calling'.\n\n49. Examples of clothing that fall into this category are chef's checked pants and cleric's robes.\n\n50. Expenditure on items of clothing which are occupation specific in nature is subject to the requirements of section 8-1 of the Act to be deductible. This type of clothing is not covered by these Guidelines.\n\n## Protective Clothing\n\n51. 'Protective clothing' is defined in subsection 34-20(2) of the Act. It is clothing of a kind that you mainly use to protect yourself, or someone else, from risk of:\n\n(a) death; or\n\n(b) disease (including the contraction, aggravation, acceleration or recurrence of a disease); or\n\n(c) injury (including the aggravation, acceleration or recurrence of an injury); or\n\n(d) damage to clothing; or\n\n(e) damage to an artificial limb or other artificial substitute, or to a medical, surgical or other similar aid or appliance.\n\n52. Examples of clothing that fall into this category are overalls, aprons, goggles, shields, hard hats and safety boots. When considering whether an item constitutes 'protective clothing' regard must be had to the nature of the business or activities carried on by the employer. For example, a mechanic's overalls would be protective however, designer overalls worn by a salesperson in a clothes shop would not.\n\n53. Expenditure on items of clothing which are protective in nature is, subject to the requirements of section 8-1 of the Act, deductible. This type of clothing is not covered by these Guidelines.\n\n# CONTACT ADDRESSES\n\n54. AusIndustry\n\nRegister of Approved Occupational Clothing\n\nLevel 5 \n111 Burke Street \nMELBOURNE VIC 3000\n\nPostal Address:\n\nAusIndustry\n\nRegister of Approved Occupational Clothing\n\nGPO Box 2013\n\nCANBERRA ACT 2601\n\nTelephone: (03) 9268 7944\n\nFacsimile: (03) 9268 7999\n\nInternet Access: www.business.gov.au\n\n55. All enquiries regarding the following matters should be directed to your local Australian Taxation Office:\n\n\\- compulsory occupational clothing;\n\n\\- occupation specific clothing;\n\n\\- protective clothing; and\n\n\\- the availability of tax deductions on all types of occupational clothing.","sortOrder":24},{"sectionNumber":"Employee","sectionType":"part","heading":"Employee","content":"## Employee\n\n40. Employee in subsection 34-5(1) of the Act includes 'an individual who is an employee as well as an individual who receives, or is entitled to receive, withholding payments covered by subsection 34-5(3) of the Act. That subsection refers to withholding payments on payments to a company director or an office holder as well as return to work payments and benefit, training and compensation payments.","sortOrder":25},{"sectionNumber":"Compulsory Occupational Clothing","sectionType":"part","heading":"Compulsory Occupational Clothing","content":"## Compulsory Occupational Clothing\n\n41. Compulsory occupational clothing is clothing which is not conventional in nature and which an employer has prescribed in an express policy stating that there is a requirement or compulsion to wear the clothing by employees. That policy must also be consistently enforced by the employer.","sortOrder":26},{"sectionNumber":"Corporate","sectionType":"part","heading":"Corporate","content":"## Corporate\n\n42. The word 'corporate', in the phrase 'corporate product or service identifiers', is used to refer to both incorporated and unincorporated bodies and applies to trusts, partnerships, joint venturers and sole traders who introduce occupational clothing for their staff. There is no specific limit on the number of employees for whom a design may be introduced. For example, a corner store which employs three or four people could, if it wishes, introduce occupational clothing.","sortOrder":27},{"sectionNumber":"Design","sectionType":"part","heading":"Design","content":"## Design\n\n44. Subsection 34-25(2) of the Act states that 'design of a uniform includes features such as its colouring, construction, durability, ornamentation, pattern and shape'.\n\n45. Where an organisation operates over a wide climatic area, it may be necessary for the design of the occupational clothing to take into account the climate for which it is intended. For example an employer who has operations in both southern Tasmania and far north Queensland may wish to submit 4 designs - 1 winter and 1 summer design for each climatic region.\n\n46. A design may also be used as a means of distinguishing between various staffing groups within an organisation eg. a set of clothing items used by office staff may differ from the set used by field staff. In these cases, the factors listed in these Guidelines should be considered in the context of the collection which applies to each separate staffing group within the organisation and entered separately on the Register. For example, the collection to be worn by the office staff should be considered separately to that worn by technicians in the field.","sortOrder":29},{"sectionNumber":"Occupational Clothing","sectionType":"part","heading":"Occupational Clothing","content":"## Occupational Clothing\n\n47. Occupational clothing is a set of one or more items of clothing and accessories (other than protective or occupation specific clothing) which distinctively identify a particular employing organisation, product or service and which employees are encouraged by their employer to acquire and wear at work, but are under no compulsion to do so.","sortOrder":30},{"sectionNumber":"Occupation Specific Clothing","sectionType":"part","heading":"Occupation Specific Clothing","content":"## Occupation Specific Clothing\n\n48. Subsection 34-20(1) of the Act provides a definition of occupation specific clothing.\n\nThis definition states, in part, that occupation specific clothing is 'clothing that distinctively identifies the employee as belonging to a particular profession, trade, vocation, occupation or calling'.\n\n49. Examples of clothing that fall into this category are chef's checked pants and cleric's robes.\n\n50. Expenditure on items of clothing which are occupation specific in nature is subject to the requirements of section 8-1 of the Act to be deductible. This type of clothing is not covered by these Guidelines.","sortOrder":31},{"sectionNumber":"Protective Clothing","sectionType":"part","heading":"Protective Clothing","content":"## Protective Clothing\n\n51. 'Protective clothing' is defined in subsection 34-20(2) of the Act. It is clothing of a kind that you mainly use to protect yourself, or someone else, from risk of:\n\n(a) death; or\n\n(b) disease (including the contraction, aggravation, acceleration or recurrence of a disease); or\n\n(c) injury (including the aggravation, acceleration or recurrence of an injury); or\n\n(d) damage to clothing; or\n\n(e) damage to an artificial limb or other artificial substitute, or to a medical, surgical or other similar aid or appliance.\n\n52. Examples of clothing that fall into this category are overalls, aprons, goggles, shields, hard hats and safety boots. When considering whether an item constitutes 'protective clothing' regard must be had to the nature of the business or activities carried on by the employer. For example, a mechanic's overalls would be protective however, designer overalls worn by a salesperson in a clothes shop would not.\n\n53. Expenditure on items of clothing which are protective in nature is, subject to the requirements of section 8-1 of the Act, deductible. This type of clothing is not covered by these Guidelines.","sortOrder":32},{"sectionNumber":"CONTACT ADDRESSES","sectionType":"part","heading":"CONTACT ADDRESSES","content":"# CONTACT ADDRESSES\n\n54. AusIndustry\n\nRegister of Approved Occupational Clothing\n\nLevel 5 \n111 Burke Street \nMELBOURNE VIC 3000\n\nPostal Address:\n\nAusIndustry\n\nRegister of Approved Occupational Clothing\n\nGPO Box 2013\n\nCANBERRA ACT 2601\n\nTelephone: (03) 9268 7944\n\nFacsimile: (03) 9268 7999\n\nInternet Access: www.business.gov.au\n\n55. All enquiries regarding the following matters should be directed to your local Australian Taxation Office:\n\n\\- compulsory occupational clothing;\n\n\\- occupation specific clothing;\n\n\\- protective clothing; and\n\n\\- the availability of tax deductions on all types of occupational clothing.","sortOrder":33}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"These Guidelines operationalise and constrain how Division 34 of the Income Tax Assessment Act 1997 will be applied in practice; they do not expand the statutory categories of deductible clothing. They set administrative tests, precise visual/branding requirements, numerical limits and procedural steps for registration and changes (eg. identifiers, colour limits, table of permitted combinations, durability expectations and approval rules). Those are operational refinements that affect eligibility and compliance costs, but they do not change the legal scope established by Division 34 (which still distinguishes occupation‑specific, protective, compulsory non‑conventional, and registered non‑compulsory clothing)."},"complexity_factors":["Multiple cross‑references to Division 34 of the Income Tax Assessment Act 1997 and specific sections (eg. ss 34‑20, 34‑25, 34‑30, 34‑45, 34‑65 and s 8‑1)","9 defined terms in the Definitions section (Class of Employees, Employee, Compulsory Occupational Clothing, Corporate, Corporate/Product/Service Identifiers, Design, Occupational Clothing, Occupation Specific Clothing, Protective Clothing)","Case‑by‑case, impression‑based eligibility test (Clause 17) creating interpretive discretion","Nested conditional rules and exceptions (eg. exclusions for protective and occupation‑specific clothing; exceptions for safety or separate public identities Clause 28)","Detailed numeric and size thresholds (identifier sizes Clause 23–25; colour maximum Clause 27; multi‑cell table limiting colour/pattern combinations by employee class Clause 30)","Procedural requirements for registration, approvals for changes, and expected removal timeframes for superseded designs (Clauses 15, 34–36)","Repeated text and long descriptive sections; multiple reiterations and a large embedded table increase reading/implementation overhead","Operational constraints with non‑technical requirements (visibility to 'casual observer' at two metres) which are imprecise for automated compliance checks (Clauses 23, 25)","Administrative delegation and discretion (Secretary may delegate decisions) which adds another layer of decision‑making bodies (Clause 13)"],"plain_english_summary":"**What this instrument does (mechanics)\n\n- It sets out detailed administrative rules and design criteria for employers who want a non‑compulsory workplace uniform/wardrobe design entered on the Register of Approved Occupational Clothing under Division 34 of the Income Tax Assessment Act 1997. (See background and Clause 11–15.)\n\n- If an employer gets a design registered under these Guidelines, employees who rent, buy or maintain items from that registered design can claim a tax deduction under section 8‑1 of the Act for those costs (Clause 7). Registration also removes a potential Fringe Benefits Tax (FBT) charge that would otherwise arise if the employer supplied the clothing free or at a reduced price (Clause 12).\n\n- The Guidelines tell employers how to apply (application form, required information, AusIndustry contact details) and give the administering authority (the Industry Secretary or delegates) the power to decide registration and keep the Register (Clause 13–16). They require case‑by‑case factual assessment (Clause 17).\n\n\nWho is affected\n\n- Employers who introduce non‑compulsory occupational clothing and want their staff’s purchase/maintenance costs to be tax‑deductible (Clauses 11, 14–15).\n- Employees who buy, rent or maintain such clothing and who would rely on those deductions (Clause 7–9).\n- AusIndustry / the Industry Department as the administering authority (Clause 13, 54).\n\n\nKey eligibility and exclusion rules (what the Guidelines require)\n\n- Only non‑compulsory clothing that is not protective clothing and not occupation‑specific normally needs to be on the Register to be deductible; protective and occupation‑specific clothing are treated separately under the Act (Clauses 4, 11, 47–53, 48–50).\n\n- A registered design must present as a cohesive, distinctive set (not merely a collection of conventional items) and the decision is a factual, impression‑based one made case‑by‑case (Clauses 17–18).\n\n- Single items generally cannot be registered except full‑body garments (e.g. dresses); single shirts, ties etc. are ineligible (Clause 20).\n\n- Every item (and qualifying accessory) in the design must carry a corporate/product/service identifier: either a permanently affixed 'stand alone' logo that meets minimum size/contrast rules, or an identifiable pattern used across the material that meets minimum density/size/visibility rules (Clauses 21–26, 23–25).\n\n- Colour and variety limits: designs may use no more than eight colours/shades (excluding identifier colours) and the number of permitted colour/pattern/print combinations for items is capped according to the size of the employee class (detailed table Clause 30). Designs should last ~3–5 years and not be altered frequently to follow fashions (Clauses 27, 30, 32–33).\n\n- Changes to a registered design (other than style only) must be approved; employers should remove superseded designs from the Register within 12 months (Clauses 34–36).\n\n- Accessories made from the same branded fabric or with approved identifiers are part of the design; footwear, short socks, stockings and underwear are never part of approved occupational clothing (Clauses 37–38).\n\n\nWhy it matters (stated purpose, and practical effects & trade‑offs)\n\n- Stated purpose: to provide a central, consistent way for employers to register uniform/wardrobe designs so employees’ related spending can be assessed for income‑tax deductibility and to clarify when an employer will avoid FBT by supplying such clothing (Clause 12).\n\n- Costs and incentives: employers must prepare an application, satisfy precise visual/branding and numeric criteria, and obtain approvals for substantive design changes (Clauses 15, 21–26, 30, 34). That creates an administrative and compliance cost for employers, and an ongoing decision burden on the administering authority. Employees still pay upfront for purchase/rental/maintenance but can claim deductions only if the design remains compliant and is worn as a set (Clauses 7–9, 32–34).\n\n- Behavioural effects and trade‑offs: employers can choose between three routes for tax treatment: (a) rely on the clothing being occupation‑specific or protective (these are assessed under different statutory tests), (b) make it compulsory (and non‑conventional) so different rules apply (Clause 4b, 41), or (c) register a non‑compulsory design and meet these Guidelines (Clauses 4c, 11, 14). That choice affects contract freedom (employers deciding dress policy), employee choice to purchase, and the firm’s FBT exposure. The requirement that designs not be available for public rental/sale after identifiers are added (Clause 22) restricts commercial resale/retailing of the branded design.\n\n- Market‑effects to note: colour and combination limits (Clause 27–30) and the ban on single‑item registration (Clause 20) reduce the variety of deductible branded items; this may lower product variety available to employees or limit how employers source uniforms. Requiring permanent identifiers and visibility standards (Clauses 23–25) may raise production costs and reduce the suitability of off‑the‑shelf garments.\n\n- Administrative discretion and implementation risk: the test is fact‑sensitive and impression‑based (Clause 17); the Industry Secretary (or delegates) decides registration (Clause 13), which creates room for case‑by‑case assessments and potential uncertainty for employers when designing or changing uniforms. The Guidelines demand employer action when designs change (Clause 34), otherwise employee deductions will stop from the date of removal.\n\n\nWho pays, who decides, what changes in behaviour\n\n- Who pays: employees buy/rent/maintain clothing and bear costs up‑front; employers bear the application/administrative cost and potential supply costs if they provide clothing (Clauses 7, 9, 15). Producers of uniforms likely face product design/production costs to meet identifier and colour rules (Clauses 21–29).\n\n- Who decides: AusIndustry (Industry Secretary) decides registrations and maintains the Register; ATO retains responsibility for tax‑deductibility and questions about compulsory, protective or occupation‑specific clothing (Clauses 13, 55).\n\n- Behaviour changes required: employers who want to preserve employee tax deductions must design cohesive uniforms, include qualifying identifiers on every item, limit colours/patterns per the table, and seek registration and approvals for material changes; employees must wear the uniform as a set (Clauses 17–18, 21–31, 34).\n\n\nPractical compliance checklist (operational takeaways)\n\n- Decide which statutory path you rely on (protected/occupation‑specific, compulsory non‑conventional, or registered non‑compulsory design) (Clause 4).\n- If registering: complete the AusIndustry application with full details (Clause 15), include identifiers per Clause 21–26, ensure colour/combination counts meet Clause 27–30, expect a fact‑based decision from the Secretary (Clause 13, 17).\n- If you change designs (beyond style), submit the changes for approval and nominate what is being replaced; remove superseded designs within 12 months to preserve tax certainty for employees (Clauses 34–36).\n\n\nReferences: relevant clauses noted above appear throughout these Guidelines (see especially Clauses 4, 7, 11–16, 17–26, 27–36, 37–38 and Definitions Clauses 39–53)."},"kimi_summary":{"_metrics":{"provider":"moonshot","completionTokens":2126},"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The Guidelines remain tightly focused on their original purpose: establishing the criteria for registration of occupational clothing designs under Division 34 of the Income Tax Assessment Act 1997. The detailed prescription regarding colors, logo sizes, and garment combinations represents the necessary specificity to implement the legislative scheme, not a expansion beyond the original intent to provide a mechanism for non-compulsory uniform registration."},"complexity_factors":["15 defined terms in the Definitions section requiring cross-reference to the Income Tax Assessment Act 1997","Prescriptive dimensional requirements (e.g., logos must cover 80% of a 4cm² area, be visible from 2 metres, minimum 1cm x 1cm for pattern identifiers)","Complex graduated table at Clause 30 setting permissible color/pattern combinations based on four tiers of employee numbers (1-100, 101-3,000, 3,001-10,000, over 10,000) across four garment categories for both male and female designs","Multiple conditional exceptions (e.g., safety requirements allowing different colors for different classes; separate public identities allowing different themes for different parts of an organisation)","Cross-references to Division 34 and specific sections of the Income Tax Assessment Act 1997 (sections 34-5, 34-20, 34-25, 34-30, 34-45, 34-65, and section 8-1)","Technical specifications for permanent affixation of identifiers (sewn on all sides, embroidered, etc.) with explicit exclusions (detachable badges, flag tags)","Rules governing 'wear as a set' behavioural requirements that create conditional deductibility based on usage patterns rather than just design features"],"plain_english_summary":"These Guidelines let employers register non‑compulsory work uniform designs with AusIndustry so employees can claim tax deductions for buying, renting or laundering them, and employers can avoid Fringe Benefits Tax. It applies to firms and their staff who want a distinctive, consistent corporate outfit rather than ordinary street clothes.\n\nRegistration is required for tax relief and demands strict design standards (cohesive set, permanent visible logo, limited colours, durability and consistent wearing); unregistered designs generally don’t qualify."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/approved-occupational-clothing-guidelines-2017","history":"/api/acts/approved-occupational-clothing-guidelines-2017/history","analysis":"/api/acts/approved-occupational-clothing-guidelines-2017/analysis","conflicts":"/api/acts/approved-occupational-clothing-guidelines-2017/conflicts","importantCases":"/api/acts/approved-occupational-clothing-guidelines-2017/important-cases","documents":"/api/acts/approved-occupational-clothing-guidelines-2017/documents"}}