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Laundry Actual Cost | 2023 Gotax

Can you claim laundry on your tax?

Can I claim amy laundry on my tax?, the answer is YES.  But you'll need to make sure you qualify, not all your work clothes will qualify.

Using the Tax Office rates to claim my laundry

To claim laundry expenses on your tax return, you need to keep a diary of the number of loads you washed during the year if you did the laundry at home. If you took the laundry for dry cleaning, you need to provide a record of the receipts and invoices. If your laundry expenses exceed $150 per year, you need to provide evidence of the expense.

Example: Claiming laundry expenses using the Tax Office rates 

Let’s say you’re a chef and you wear a traditional chef’s uniform to work. You wash your uniform at home once a week. To claim laundry expenses on your tax return, you would keep a diary of the number of loads you washed during the year. In this case, you washed 52 loads (one load per week for 52 weeks). You can then use this information to claim laundry expenses on your tax return using the Tax Office rates.

Using the actual cost method to claim my laundry

If you received an allowance from your employer for laundry expenses, you must include this on your tax return as it is considered part of your income. You are still able to claim a deduction even if you have received an allowance, but it is important that you claim the deduction for the amount you actually spent, not the amount of your allowance.

Example: Claiming laundry expenses using the actual cost method 

Let’s say you’re a construction worker and you receive an allowance from your employer for laundry expenses. You spend $200 per year on laundry and dry cleaning for your work clothes. On your tax return, you would include the allowance as part of your income and claim a deduction for the $200 you actually spent on laundry and dry cleaning.

Tips for claiming your laundry properly

Make sure to keep accurate records of your expenses and provide evidence if required. If your laundry expenses pass the wholly, exclusively and necessarily test, you can claim self-employed expenses when you do your Self Assessment tax return.

Traps of not claiming your laundry properly

If you don’t keep accurate records or provide evidence when required, your claim may be denied. It’s important to only claim deductions for expenses that are directly related to earning your income.

According to the Australian Taxation Office, if your laundry expenses (washing, drying and ironing but not dry-cleaning expenses) are $150 or less, you can claim the amount you incur on laundry without providing written evidence of your laundry expenses. This is the case even if your total claim for work-related expenses is more than $300 including your laundry expenses.

For more information on claiming laundry expenses on your Australian tax return, sign up to gotax.com.au.

 

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