Private ruling: Deductions - legal expenses
Date of advice: 24 November 2021
Published: February 2022
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you entitled to a deduction for legal expenses? | A1: Yes. Based on the information provided to the Commissioner the legal expenses you incurred in relation to the TPD payment from the super fund is an allowable deduction under Section 8-1 of the Income tax Assessment Act 1997 .

Relevant facts and circumstances: You received a TPD payment from a superfund after engaging a legal firm to assist you with the claim. You were awarded a substantial amount from the TPD claim. This amount was prefilled into your tax return as income from information reported by the super fund. A portion of the monies was paid to a solicitor for legal costs.

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