Private ruling: Legal Expenses
Date of advice: 28 August 2015
Published: August 2015
Ruling period: Year ended 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you entitled to claim a deduction for legal expenses? | A1: Yes


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

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 allows a person to claim a loss or outgoing that is incurred in gaining or producing assessable income so long as the loss or outgoing is not of a capital, private or domestic nature. In your case, as the expenses were directly related to your employment and incurred in order for you to receive assessable income, you are entitled to a deduction for the legal expenses.

Relevant facts: You obtained legal advice in relation to obtaining back pay from your employer and because a co-worker had expressed a concern about you working in the workplace.