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Deductions for interviews/finding work

I'm new

Views 13822

Replies 5

Hi all, I am wondering if expenses incurred in relation to travelling to interviews and other job seeking activities such as meeting recruitement agents are deductable? For example, mileage, car parking, meals/drinks. I have a novated lease car.

Kathleen

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

Taxicorn

Replies 0

You can only claim deductions for costs incurred whilst employed and specific to that job.

Any cost that you incur BEFORE being employed are at a point too soon and can not be claimed.

 

Many times people will pay for expensive medicals or prepurchase expensive tools and all of that is not claimable.

 

 

5 REPLIES 5

Most helpful response

ATO Certified Response

Taxicorn

Replies 0

You can only claim deductions for costs incurred whilst employed and specific to that job.

Any cost that you incur BEFORE being employed are at a point too soon and can not be claimed.

 

Many times people will pay for expensive medicals or prepurchase expensive tools and all of that is not claimable.

 

 

Former Community Support

Replies 3

Hi @InquiringNature,

 

Thanks for posting! Costs associated with finding a new job are considered to be private in nature, so aren't allowed as deductions for tax purposes.

 

Thanks.

Initiate

Replies 0

Hi AmandaE,

Your “ATO certified” answer is wrong I’m afraid. You are correct that expense referred to is NOT deductible for an employee, but the reasons given are so very wrong that you are confusing everyone who reads it. 

 

There is obviously nothing private in nature about the cost of applying for jobs and attending interviews. The link you provide is about the cost of moving house and relocating where you live because of a new job in another city etc. We can easily appreciate why these expenses might be seen as private, but they have nothing to do with the question being asked

 

The correct answer was given by the Mcfanboy respondent - the expense is not incurred in earning income because it is incurred before you begin to earn income from the new job. They often say this sort of non-deductible expense is “at a point too soon”. I will quote the leading case (called Madelenna after the NSW electricician and rugby player involved): “...the expenses of changing from one job to another as an employee ... would have been incurred in getting, not in doing, work as an employee. It would come at a point too soon to be properly regarded as incurred in gaining assessable income.”

 

Initiate

Replies 1

This community website doesn’t seem to be working very well.  Man Frustrated

 

Three weeks after I pointed out the ATO Certified answer is wrong there has been no response and no correction. People visiting this page might easily conclude that my answer and MacFanboi’s answer were both wrong and the ATO answer (that answered a very different question) is right. 

 

The website concept is good, but sadly the ATO is probably not being sufficiently funded to allow them to manage the quality of the content.

Community Manager

Replies 0

Hi @Orble,

 

Thanks for bringing this to our attention, sometimes we do miss things so we appreciate when the Community alerts us. We agree, @macfanboy's answer is the most appropriate one for this question and we have given it the Best Answer and ATO certified it.

 

Thanks again! NateH