Will vinegar harm my garden?

I live in drought-stricken Australia and like most people I'm doing everything possible to conserve water. My laundry grey water is being run off into the garden. I've changed to a No Phosphate washing liquid and stopped using fabric softeners. I've heard that vinegar is a good fabric softener and would like to substitute this for the commercial brands. Is it a fabric softener and will it harm my garden if used regularly? Is there anything else that can be used in its place that won't adversely affect my garden?