Hi there,
I was involved in a Fair Work dispute for which I had to engage an Employment Lawyer. The dispute was resolved and I kept my employment contract in the end. Can I deduct the legal expenses I incurred for this? And if so, would that be including or excluding GST?
I came across the Tax Ruling Legal Database and as per paragraph 2 of TR 2000/5, the following costs incurred by an employee are an allowable deduction:
- costs of drawing up an employment agreement with an existing employer to replace an award or in accordance with a provision in the existing agreement;
- costs associated with settlement of disputes arising out of an existing employment agreement including the cost of representation;
- costs of changing the conditions of an existing employment agreement with the same employer - providing the existing agreement allows for changes - be it a variation, re-negotiation of an existing agreement or upon a promotion; and
- costs of renewing or extending a fixed term agreement which has a provision allowing for renewal or an extension at the end of a term.
Going from the above, I would think the costs are deductible.
Appreciate your help, thanks.
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