Expenses for managing your own tax affairs include expenses relating to:
preparing and lodging your tax return and activity statements
travel, to the extent that it is associated with obtaining tax advice – for example, the travel costs of attending a meeting with a recognised tax adviser
appealing to the Administrative Appeals Tribunal or courts in relation to your tax affairs, and
obtaining a valuation needed for a deductible gift or donation of property or for a deduction for entering into a conservation covenant.
Expenses relating to preparing and lodging your tax return and activity statements include costs associated with:
buying tax reference material
lodging your tax return through a registered tax agent
obtaining tax advice from a recognised tax adviser, and
dealing with the Tax Office about your tax affairs.
You can claim fees paid to a recognised tax adviser for preparing or lodging your tax return if those fees were incurred in 2008–09. Generally, you incur the fees in the year you pay them. A recognised tax adviser is a registered tax agent, barrister or solicitor.
See List of Tax Agents for information on how to check whether your tax agent is registered.
Example
During 2008–09, Louise engaged a registered tax agent to prepare and lodge her 2008 tax return. The tax agent lodged her tax return in September 2008 and charged Louise $220, which she paid immediately. Louise can claim a deduction for the tax agent’s fee on her 2009 tax return.
You cannot claim for the cost of tax advice given by a person who is not a recognised tax adviser.
Tax shortfall and other penalties for failing to meet your obligations are not deductible.
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