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Re: Work related medical and training expenses

Initiate

Views 1333

Replies 6

Some employers or employment agencies who employ people to work in the mining industry require a medical test and training like working in heights before the new employee start working.

The employer or agency pay the cost then deduct it from the employees wage over a number of weeks after they start working and earning income.

Can the employee claim the expense since it was deducted from their wage while they were earning income?
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 0

I agree, these are pre employment expenses and are not deductible. They are incurred too soon before earning income.
6 REPLIES 6

Devotee

Replies 5

You are not able to claim these amounts.

 

As they were deducted from pre-tax wages, it is the employer, not you, who has paid for those items.

 

Initiate

Replies 4

I don't think that's a pre tax wages. For example the employee's gross income on which they pay tax is $1,100. The employee receives  $800 net in their bank account, tax withheld $100 and the employer deduct $200 (the expense) so the employee in the end of the day paid the expense back to the employer.

Champion

Replies 3

Hi @MR4

 

These expenses would not be claimable as they occur before you were employed, you are not earning any income to claim them against. 

We have a summary of  deductions  relating to the mining industry that may be helpful in the future.

Hope this helps!

Initiate

Replies 2

@StefanATO That's right. The confusing part is, should i consider the expense directly relate to earning their income because the employee paid it back to the employer while earning income and therefore deductible or it's a pre- employment expense because the employer paid it before the employee started earning income and therefore not deductible!

Devotee

Replies 1

Apologies for misinterpreting your initial post.  Pre-employment expenses are generally not deductible.  

 

If you don't receive further responses, it might be worth asking colleagues whether anyone has received different advice from the ATO or an accountant.

Most helpful response

Devotee

Replies 0

I agree, these are pre employment expenses and are not deductible. They are incurred too soon before earning income.