Can the cost of clothing be tax deductible?

Welcome to the December edition of our client newsletter. As the year comes to a close, we’ve curated a range of timely and practical articles covering the latest developments in tax, superannuation, and financial planning, designed to help you finish the year informed and confident about your finances.

In this edition:

1. Can the cost of clothing be tax deductible?  The short answer is sometimes. The ATO has strict rules around when work clothing expenses can be claimed. We outline when deductions are available for occupation-specific clothing, compulsory uniforms, and protective items, and when they’re not. 
2. Thinking of a Christmas stay in your SMSF property? Think again!  Planning a festive break at a holiday home owned by your SMSF? We explain why this isn’t allowed, even if you’re retired or paying market rent, and what rules apply to SMSF-owned property use.
3. The 50% CGT discount: More than meets the eye While many are familiar with the 50% CGT discount, the eligibility rules can be more complex than they seem. We break down key considerations to help you apply the discount correctly.
4. Could you be missing out on thousands in lost super? With nearly $19 billion in lost and unclaimed super across Australia, it’s worth checking if some of it could be yours. We explain how to find lost super and share simple tips to stay on top of your savings. 
5. Who can make a claim against a deceased estate? We explore who is legally entitled to make a claim and what the courts consider when determining whether adequate provision has been made for dependants or family members.
6. Surviving (and maybe avoiding) an ATO audit If you’re self-employed, preparation is key. We outline how to reduce your chances of an ATO audit and what to do if you’re selected.

Bonus reads this month:

• Foreign residents can be liable for CGT in Australia  Foreign residents (whether individuals, companies, or trusts) can still be liable for Australian CGT in certain situations. We outline which assets are affected and how the rules apply.
• Caravanning around Australia for 12 months? The CGT implications  Planning the ultimate road trip in retirement? We explain how an extended trip might affect your Age Pension and main residence CGT exemption.

We hope you enjoy this final edition for the year and find it both informative and valuable. As always, if you have any questions or would like tailored advice, please don’t hesitate to get in touch.

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2025 – 12 – MBS Monthly Update