Private ruling: Investment related deductions
Date of advice: 24 February 2025
Published: 7 April 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for ongoing investment adviser fees? | A1: No. | Q2: Are you entitled to a deduction for the Investment Portfolio Review of your allocated pension accounts? | A2: No. | Q3: Are you entitled to a deduction Portfolio Review of your allocated pension accounts? | A3: Yes. | Q4: Are you entitled to a deduction for advice relating to tax effective superannuation strategies? | A4: Yes.

Relevant facts and circumstances: You receive annual advice regarding your superannuation funds. You received the below advice in the relevant income year: • for the Investment Portfolio Review of your allocated pension accounts (for both you and your spouse) • for advice relating to tax effective superannuation strategies for you. More specifically this required calculating the optimal level of concessional contributions for you to make in planning your tax affairs. An invoice was issued during the relevant financial year to you and your spouse. The above invoice related to your regular annual advice review.

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 (ITAA 1997) allows a deduction for a loss or an outgoing to the extent to which it is incurred in gaining or producing assessable income, except where the loss or outgoing is of a capital, private or domestic nature. TD 2024/7 Income tax: deductions for financial advice fees paid by individuals who are not carrying on an investment business sets out when an individual is entitled to claim a deduction for fees associated with financial advice. Paragraph 20 says fees for financial advice incurred on a regular or recurrent basis for an existing or ongoing income-producing investment are deductible under section 8-1. This includes fees for advice from an existing adviser on whether the mix of assets held is still appropriate for the individual's needs and advice on whether to retain or dispose of those assets. You are not entitled to a deduction for the full amount of the advice fees as this amount relates to both you and your spouse's superannuation funds. You are entitled to a deduction for the Investment Portfolio Review of your allocated pension accounts. You are entitled to a deduction for advice relating to tax effective superannuation strategies. You are able to deduct the amount you incurred as a result of obtaining annual advice regarding your superannuation funds under section 8-1 of the ITAA 1997.