Tax deductions for employee’s non-compulsory uniform

Employers can register their non-compulsory uniform and accessories. This provides employees with tax deductions for the cost of renting, buying or maintaining their clothing. Employers are eligible for fringe benefit tax (FBT) concessions on any contribution they make towards their employees’ uniforms.

Any employer in Australia can register their non-compulsory corporate uniform and accessories in the Textile, Clothing and Footwear (TCF) Corporatewear Register. It’s free to register a uniform set.

Non-compulsory corporate uniform is a set of clothing and accessory items that:

• distinctly identifies a particular employer, product or service
• isn’t compulsory for employees to wear to work

The uniforms can’t be clothing and accessory items that are:

• compulsory
• protective
• occupation-specific

Businesses with employees who wear a non-compulsory uniform may avoid paying fringe benefits tax (FBT) on any subsidies they provide for the uniform.

Employees can get tax deductions for the costs of renting, buying or maintaining an approved non-compulsory corporate uniform.

The Australian Taxation Office (ATO) has more information about claiming deductions for non-compulsory corporate uniforms.

The ATO determines the level of tax deductions.

What are the eligibility criteria?

The design of the non-compulsory uniform must meet the Approved Occupational Clothing Guidelines. Some of the uniform design basics to meet are:

• The uniform must be a complete outfit such as a dress, shirt and trousers, shorts, and/or skirt.
• A company identifier, such as discrete logo, name or initials, must be on all items in the uniform. This includes accessories.
• For clothing, the identifier must be at least 80% of a 4cm square area.
• For accessories, such as a tie or scarf, the identifier must be at least a 1cm square area.
• Identifiers must be in a contrasting colour or shade to the garments they are attached to. They must be visible from 2m away.
• You must permanently attach the identifier to each garment. This may include embroidering, iron on or heat seal.
• The entire garment range can have a maximum of 8 colours. This includes different shades of a colour. It excludes those found in the identifier.
• There is a limit to the number of colour/pattern/print combinations allowed. We base this on the number of employees in a class.
• When the uniform is worn by different groups of employees, there must be a common theme. This includes the different groups, classes or male and female uniform.
• The uniform must be appropriate for the duties of the employee.

How do you apply?

The application form is intended for use by employers only. Read the Approved occupational clothing guidelines before you apply.

Submit your application before starting production, purchase and embroidery of garments. This will help ensure the uniform sets comply with Approved Occupational Clothing Guidelines.

To register a uniform you must complete the application form:

• Non-compulsory corporate uniforms application form – Registration

Submit your application

Post your application form to:

Corporatewear Register
C/- AusIndustry
GPO Box 2013
Canberra ACT 2601

Email your application form to corporate.wear@industry.gov.au.

If possible you should:

• attach high quality scans of the fabric/logo/identifier
• attach sketches or images of the fabric/logo/identifier
• show or describe all colours of the fabric/logo/identifier