Can I claim legal fee's incured for Fairwork representation, whilst employeed

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 · Accepted Answer

JodieR_ATO · Answer

If you've incurred legal fees in regard to your employment, you may be able to claim a deduction. There's private advice (https://www.ato.gov.au/law/view/view.htm?docid=EV/1051968125956&PiT=99991231235958#:~:text=Yes%2C%20the%20legal%20fees%20and,Act%201997%20(ITAA%201997).) you can view which includes the following - legal fees and settlement payment expenses are deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997). Detailed reasoning - Section 8-1 of the ITAA 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income or are necessarily incurred in carrying on a business for the purpose of gaining or producing assessable income (positive limbs). However, no deduction is allowed under subsection 8-1(2) of the ITAA 1997 if the outgoings are of a capital nature, a private or domestic nature, or relate to the earning of exempt income (negative limbs). However, you cannot rely on this private advice for your own circumstances. We'd recommend contacting our tailored technical assistance (https://www.ato.gov.au/General/ato-advice-and-guidance/tailored-technical-assistance/) area for further guidance on this. They may advise you to seek a PR.

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