Uniform, Laundry & Special Clothing Allowances
When the SCHADS Award requires an employee to wear a uniform, the starting point under clause 20.2 is that the **employer supplies the uniforms free of cost and launders them** — the items stay the employer's property. Only **by agreement** can the employer pay an allowance instead. Clauses 20.2, 20.3 and 20.4 set out three related but distinct entitlements: the **uniform allowance** (in lieu of supplied uniforms), the **laundry allowance** (where the employee launders their own work clothing), and **reimbursement** for special clothing, safety equipment, and repair or replacement of clothing damaged on the job. The dollar figures are small, but the "whichever is the lesser" caps and the rules about when each one is and isn't payable are exactly where payroll goes wrong.
Quick Facts
- Uniform allowance
- $1.23 per shift (or part), or $6.24 per week — whichever is the lesser
- Laundry allowance
- $0.32 per shift (or part), or $1.49 per week — whichever is the lesser
- Employer-supplied uniforms
- Must be supplied free and laundered free if a uniform is required
- Special clothing / safety equipment
- Cost reimbursed by the employer (unless provided)
- Paid on leave?
- Uniform allowance yes; laundry allowance no
- Clause
- cl.20.2–20.4 SCHADS Award
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The default: employer supplies and launders uniforms
Clause 20.2(a) sets the baseline. If the employer **requires** employees to wear a uniform, the employer must:
- Supply an **adequate number** of uniforms appropriate to the occupation, **free of cost** to the employee;
- Retain ownership — the uniforms **remain the property of the employer**; and
- **Launder and maintain** them free of cost to the employee.
Uniform allowance in lieu — and the "lesser" cap
Under clause 20.2(b), **instead of** supplying uniforms, the employer **may, by agreement** with the employee, pay a **uniform allowance** of:
- **$1.23 per shift** (or part of a shift) on duty, **or**
- **$6.24 per week**, whichever is the lesser amount.
Laundry allowance — two separate clauses
There are two distinct laundry triggers, both at the same rate of **$0.32 per shift (or part thereof)**:
- Clause 20.2(b) — uniform laundry. Where the employee wears a uniform under the in-lieu arrangement and that uniform is **not laundered by or at the expense of the employer**, the employee is paid a laundry allowance of **$0.32 per shift (or part), or $1.49 per week, whichever is the lesser amount**.
- Clause 20.3 — non-uniform clothing soiled on duty. If during any day or shift the employee's own clothing (not a uniform) is **soiled in the course of performing their duties**, they are paid a laundry allowance of **$0.32 per shift**. This is conditional: the employee must give notice of the soiling as soon as reasonably practicable (and, if requested, evidence of it), and must have complied with any reasonable PPE requirement at the time.
Special clothing, safety equipment, and damaged clothing
Two reimbursement entitlements sit alongside the allowances:
- Clause 20.2(d) — special clothing and safety equipment. Where the employer requires the employee to wear rubber gloves, special clothing, or where safety equipment is required for the work, the employer must **reimburse the cost** of purchasing it — unless the employer provides it. This is a reimbursement of actual cost, not a fixed allowance.
- Clause 20.4 — repair and replacement of non-uniform clothing. If an employee's own clothing is soiled or damaged (beyond normal wear and tear) in the course of duties, to the extent that repair or replacement is necessary, the employer must **reimburse the reasonable cost**. Conditions apply: prompt notice and, if requested, evidence of the damage and the costs; PPE compliance at the time; and the damage must not be caused by the employee's own negligence. Clause 20.4 does **not** apply where the employee wears an employer-supplied uniform or is otherwise entitled to a payment under clause 20.2.
How payroll typically gets this wrong
The figures are tiny, but the conditions trip providers up repeatedly:
- Paying the allowance when the employer already supplies and launders. If the employer hands out uniforms and washes them under clause 20.2(a), there is no uniform or laundry allowance owing — paying it as well is a double-up.
- Supplying nothing AND paying nothing. The opposite error: requiring a uniform, not supplying it, not laundering it, and not reaching an in-lieu agreement — leaving the employee out of pocket with no allowance at all.
- Ignoring the "whichever is the lesser" cap. Paying $1.23 × every shift across a busy week (e.g. $1.23 × 6 = $7.38) instead of capping at the $6.24 weekly figure. The same applies to the $0.32 / $1.49 laundry cap.
- Paying the laundry allowance during leave. The **uniform** allowance is paid during paid leave (clause 20.2(c)); the **laundry** allowance is not. Carrying the laundry allowance through annual leave is a common error.
- Forgetting reimbursement for required safety/special clothing. Clause 20.2(d) reimbursement and clause 20.4 repair/replacement are easy to miss because they are not fixed line-items — they only appear when an employee claims a cost.
Worked example
A full-time support worker has agreed with their employer to receive an allowance in lieu of supplied uniforms (clause 20.2(b)), and washes the uniforms at home (the employer does not launder them). In one week she works **6 shifts**. The following week she works only **1 shift** and is then on **paid annual leave** for the rest of the week.
Week 1 (6 shifts):
• Uniform allowance: 6 × $1.23 = $7.38, but capped at the lesser **$6.24 weekly** rate
• Laundry allowance: 6 × $0.32 = $1.92, but capped at the lesser **$1.49 weekly** rate
• Total: **$7.73** for the week
Week 2 (1 shift + paid leave):
• Uniform allowance: 1 × $1.23 = $1.23 (the per-shift total is the lesser amount), **plus** the uniform allowance continues during the paid leave under clause 20.2(c)
• Laundry allowance: 1 × $0.32 = $0.32 for the shift worked — but **nothing during the leave**, because the laundry allowance is not payable on leave
If, on one of those shifts, she is required to wear rubber gloves she has to buy herself, the employer must **reimburse that cost** under clause 20.2(d) on top of the allowances above.
Week 1 (6 shifts):
• Uniform allowance: 6 × $1.23 = $7.38, but capped at the lesser **$6.24 weekly** rate
• Laundry allowance: 6 × $0.32 = $1.92, but capped at the lesser **$1.49 weekly** rate
• Total: **$7.73** for the week
Week 2 (1 shift + paid leave):
• Uniform allowance: 1 × $1.23 = $1.23 (the per-shift total is the lesser amount), **plus** the uniform allowance continues during the paid leave under clause 20.2(c)
• Laundry allowance: 1 × $0.32 = $0.32 for the shift worked — but **nothing during the leave**, because the laundry allowance is not payable on leave
If, on one of those shifts, she is required to wear rubber gloves she has to buy herself, the employer must **reimburse that cost** under clause 20.2(d) on top of the allowances above.
Tax, super and STP treatment
Uniform and laundry allowances are expense-related, which shapes how they are taxed and reported:
- PAYG withholding. A laundry allowance is tax-free up to the ATO threshold of $0.58 per day or $2.88 per week; only amounts above that are subject to PAYG. The SCHADS laundry allowance ($0.32/shift, $1.49/week) sits below the threshold, so no tax is withheld, and the uniform allowance is likewise not withheld within the ATO limits.
- Superannuation. Neither allowance is ordinary time earnings, so no super is payable.
- Payroll tax. Both are included for payroll tax.
- STP Phase 2. Report both under the Laundry allowance category, itemised separately from gross wages.
Common Questions
Frequently Asked Questions
- Does the employer have to pay an allowance, or can they just supply uniforms?
- Supplying uniforms is the default. Under clause 20.2(a), if a uniform is required the employer must supply it free and launder it free. The allowance under clause 20.2(b) is only paid where the employer agrees with the employee to pay it **instead of** supplying uniforms — it is not something the employer can be forced into, and it is not paid on top of supplied-and-laundered uniforms.
- What does "whichever is the lesser amount" mean for the allowance?
- Both the uniform allowance ($1.23 per shift or $6.24 per week) and the laundry allowance ($0.32 per shift or $1.49 per week) are paid at whichever of the two figures is **smaller** for that week. Across a full week of shifts the per-shift total exceeds the weekly figure, so you receive the weekly cap; in a week with only a shift or two you are paid per shift.
- Is the laundry allowance paid while I'm on annual leave?
- No. Clause 20.2(c) provides that the **uniform** allowance continues during paid leave (with limited exceptions for long service leave and personal/carer's leave beyond 21 days), but the **laundry** allowance is **not** paid during leave. Paying laundry allowance through annual leave is a common payroll error.
- Who pays for safety gear or clothing damaged at work?
- The employer. Under clause 20.2(d), where rubber gloves, special clothing or safety equipment is required, the employer must reimburse the cost (unless they provide it). Under clause 20.4, if your own (non-uniform) clothing is soiled or damaged beyond normal wear and tear in the course of your duties, the employer must reimburse the reasonable repair or replacement cost — provided you give prompt notice, complied with PPE requirements, and the damage wasn't caused by your own negligence.
- Do you withhold tax or pay super on the uniform and laundry allowances?
- No super — neither allowance is ordinary time earnings. PAYG is only withheld above the ATO laundry threshold of $0.58 per day or $2.88 per week, and the SCHADS figures sit below it, so no tax is withheld. Both are counted for payroll tax and reported under the STP Phase 2 Laundry category.
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