Our ATO Community is here to help make tax and super easier. Ask questions, share your knowledge and discuss your experiences with us and our Community.
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.
@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!
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.
Tell us about your ATO Community experience and help us improve it for everyone.Provide feedback