Announcements
Curious about the JobMaker Hiring Credit? Have a read about who is eligible and how to register.

ATO Community

Work Related Deductions on Work Related Income only from LSL Payout

This post is archived and may not be up-to-date.

Devotee

Views 1005

Replies 4

After non paid leave from work I decided to quit which resulted in LSL payout. My only work related income was from this LSL payout.

 

My question is about work related tax deductions. I had a professional association fee while I was on unpaid leave (before quiting) and a union fee after quiting but within the finacial year.

 

Can I claim any, none or all of these as a work related deduction?

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Moderator

Replies 2

Hi @JakeE,

 

Thanks for your question.

 

You are only able to claim a work related deduction or expense when it directly relates to earning your income. The deduction reduces your income which then reduces the amount of tax that you pay.

 

If you are not earning any income there is nothing to claim a deduction against.

 

You would not be able to claim the deduction for your professional association fees or your union fees as you were not earning an income during the time you incurred the expenses.

 

Thanks

KylieS

 

 

4 REPLIES 4

Champion

Replies 0

The costs incurred while you're still an employee would be relevant to the job.

The union fee is something you would pay regardless of being employed and so isn't deductible while you aren't employed.

 

So my opinion is that you would be able to claim the professional fee but not the union fee.

 

Most helpful response

Community Moderator

Replies 2

Hi @JakeE,

 

Thanks for your question.

 

You are only able to claim a work related deduction or expense when it directly relates to earning your income. The deduction reduces your income which then reduces the amount of tax that you pay.

 

If you are not earning any income there is nothing to claim a deduction against.

 

You would not be able to claim the deduction for your professional association fees or your union fees as you were not earning an income during the time you incurred the expenses.

 

Thanks

KylieS

 

 

Devotee

Replies 1

Thanks Kylie.

I am confused I rang the ATO call centre before reading your response. A call centre person gave me a different answer. He said the association fee being before the LSL payout was deductible. The union fees on the other hand could be decutible if my intent was to find other work in the same field (as which the union fees are associted with) after quiting. 

Can you clarify if my LSL payout is not considered earning incnome. Is this were the descrepancy in answers comes from?

Community Moderator

Replies 0

Hi @JakeE

 

Thanks for your question,

 

You advised that you were on unpaid leave therefore there is nothing to claim the deduction against. The professional association fee did not assist you in earning your income - as you were not receiving any.

 

Check out this Taxation Ruling it may assist you.

 

Thanks

KylieS