Private ruling: Deductibility of service fees
Date of advice: 2 September 2022
Published: November 2022
Ruling period: Year ending 30 June 2023 | Year ending 30 June 2024
Date scheme commenced: 1 July 2022

Ruling: Q1: Are the services fees that you incurred in relation to your assessable income deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. The services fees that you are charged will be a deduction under section 8-1 of the ITAA 1997 as the expense is incurred in gaining or producing your assessable income.

Relevant facts and circumstances: You run a medical practice business. The service charged is consistent with the ATO guide Your service entity arrangements.

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