Private ruling: Deductions
Date of advice: 1 September 2018
Published: October 2018
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you eligible to claim a deduction for financial advice regarding retirement options? | A1: No Section 8-1 of the Income Tax Assessment Act 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature. Based on the facts you have provided we have determined that your expenses are private in nature and not incurred in the production of your assessable income, accordingly, you are not entitled to a deduction for this cost.

Relevant facts and circumstances: You sought advice from two financial advisors prior to your retirement. You also attended a seminar and sought advice from a Government agency. You were provided with options on how to maximise your income once you had retired. You retired on 2 July XXXX.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1