Avoid Tax Penalties and Save on Fringe Benefits Tax

It’s a very common misconception that putting a logo on a piece of clothing makes it a deductible/Fringe Benefits Tax (FBT) exempt uniform, and this is not the case.

If your uniform isn’t registered, as an employee you are being denied tax deductions, whether for purchase or laundering expenses. And as a business providing uniforms to your employees (whether free or at discounted cost), it’s costing you 47 per cent extra in FBT.

Are you familiar with the Approved Occupational Clothing Register? Does even reading the name of that feel like a hassle, and something else you don’t want on your to-do list? We’ll take care of the registration and give you a one-page information sheet to provide to your employees.

Why?

'Compulsory’ – and therefore tax deductible – uniforms are rarer than most people think.

For a uniform to be considered 'compulsory' by the ATO, it must:

• have been designed and made only for the employer;
• have the employer's logo permanently and visibly attached and not be available to the public; and
• be made compulsory to wear through a strictly enforced workplace agreement or policy.

An unregistered, non-compulsory uniform is considered ‘conventional clothing’, even if your logo is on it.

Note: Protective clothing sits outside these provisions and remains deductible.

What are the next steps?

If you’re an employee, please send this email to your employer and ask if your uniform is registered. If not, they might consider enlisting our help so that you are able to claim a tax deduction in relation to your uniform.

If you’re a business, navigating the criteria and guidelines of the registration process with AusIndustry can be complex and time consuming.

The criteria to be approved, and detail around what must be provided, can feel overwhelming and end up on a list of things you don’t seem to get time to do.

To save you time we can complete the lodgement on your behalf:

REGISTER ME – WILL FILL OUT A MANUAL FORM - $690 + GST

REGISTER ME – PLEASE CALL TO GUIDE ME - $990 + GST

We do realise that in today's competitive recruitment landscape, offering additional benefits can make a difference to attracting and retaining employees.

That's why we will provide a one-page information sheet to share with your team and recruitment candidates. It will fit nicely into your Employee Value Proposition documentation.

Should you have any questions or concerns about your eligibility, please do not hesitate to contact us.

To read more about the register, you can visit www.business.gov.au or www.ato.gov.au.

Or, to save reading, sign up using the links above and we will do the hard work for you.