The necessary & peculiar test.
Expenditure on clothing is not usually considered to be incurred in gaining income, and further, it would be said to be private in nature, being worn in conformity with the conventions of civilised life.
The necessary & peculiar test.
However, there are2 situations in which outgoings on clothing can be said to be incurred in gaining income these are - the necessary & peculiar test the abnormal expenditure test
The necessary & peculiar test.
Where the expenditure is on clothing, which is necessary, and peculiar to the taxpayer's occupation a deduction may be allowed
Clothing might be
necessary because it is
Prescribed by the employer
, as a uniform, which must be worn by staff. For example - attire worn by nurses or members of the police or defence forcesRefer to para 14-180 -CCH Master Tax Guide for a checklist of occupations for which special clothing or footwear may be involved
There will be instances in which an employee wears a non-compulsory uniform. The cost of such attire is only allowable if the employer has registered the uniform - see the topic on
Corporate Wardrobes and Uniforms - sec 34
Clothing might also be necessary because it
Protects the employee
from unsafe or dirty working conditions. The overalls and safety boots worn by miners would be an example. The overalls might also be worn for the protection of conventional clothes eg dustcoats for laboratory workers, painters' overalls
Peculiar
refers to the fact that the clothing must beinherently unsuitable for private use
.
Remember that the clothing must be both necessary and peculiar.
Answer this question….
Indicate whether the following attire would be necessary & peculiar. Suits worn by bank - manager?
Yes No
Normal attire - private expendture
Answer this question….
Are these clothes necessary and peculiar? Female bank employee's outfit - distinctive house style imposed by bank
Yes No
Refer para 14-180 - CCH Master Tax Guide
Answer this question….
Are these clothes necessary and peculiar? Overalls worn by painter?
Yes No
These would protect the conventional attire of the painter.
Answer this question….
Are these clothes necessary and peculiar? black dress worn by shop assistant?
Yes No
Cost of conventional clothing is not incurred in gaining income
Answer this question….
Are these clothes necessary and peculiar? Black suit worn by funeral director in tropical area of Queensland
Yes No
Equivalent to uniform - only funeral directors and eccentrics would wear such a suit in tropical Queensland - refer CCH Master Tax Guide - para 14-180
Answer this question….
Are these clothes necessary and peculiar? Robes & wig worn by judge?
Yes No
You would not normally go around in a wig, etc
Answer this question….
Are these clothes necessary and peculiar? Trades-man's steel capped boots?
Yes No
They give protection from injury
