How to Claim Laundry Expenses on Your Tax Return

Laundry is one of the most frequently claimed tax deductions in Australia, yet it is also one of the most commonly audited. Why? Because many people assume they can simply claim a flat $150 without checking if they are actually eligible.

Before you enter "$150" into your tax return this year, here are the official ATO rules you need to know.

1. The First Hurdle: Eligibility

You cannot claim laundry expenses for "normal" clothes (like a business suit or plain black pants), even if your boss requires you to wear them. To claim laundry, the clothing must be a deductible work uniform, which means:

• It is a Compulsory Uniform (e.g., police uniform, nurse scrubs).
• It is a Registered Non-Compulsory Uniform (has a registered logo).
• It is Protective Clothing (e.g., high-vis vests, fire-resistant shirts).

2. The Calculation Methods

If you have eligible clothing, you can claim the cost of washing, drying, and ironing it. The ATO provides a standard formula:

• $1 per load: If the load contains only work clothes.
• 50 cents per load: If you mix work clothes with your private laundry.

Example: If you wash a mixed load twice a week for 48 weeks a year, your claim is: 2 x 48 x $0.50 = $48.

3. The $150 Rule (No Written Evidence)

You do not need to keep receipts or a written diary if your total laundry claim is $150 or less. The ATO considers this a reasonable estimate.

4. What if my claim is over $150?

If you wash your uniform separately every single day, your calculated claim might exceed $150. In this case, you must keep written evidence.

You don't need receipts for the washing powder, but you do need a diary kept for a representative 4-week period showing exactly how often you washed your clothes and the method used (e.g., "Washed uniform separately, warm cycle"). You can then extrapolate this for the rest of the year.

5. Dry Cleaning

Dry cleaning is separate from the laundry formula. If you dry clean your uniform, you must have the actual receipts to prove the cost, regardless of the amount.

Summary

Claiming laundry is a great way to get a little extra back at tax time, but accuracy is key. Stick to the formula, be honest about your wash loads, and you'll stay off the ATO's radar.