Things you need to know
To claim a deduction at this question you must incur expenses for managing your tax affairs, including:
- the preparation and lodgment of your tax return and activity statements, including the costs associated with
- buying tax reference material
- tax return preparation courses
- lodging your tax return through a registered tax agent
- obtaining tax advice from a recognised tax adviser (fees you pay to a recognised tax adviser are deductible in the year you incur them)
- dealing with us about your tax affairs
- purchasing software to allow the completion and lodgment of your tax return – you must apportion the cost if you also use the software for other purposes.
- travel to obtain tax advice from a recognised tax adviser
- obtaining a valuation needed for a deductible donation of property or for a deduction for entering into a conservation covenant, see Gifts of property in Special circumstances 2025.
- litigation costs you incur in managing your tax affairs, including
- court fees
- Administrative Review Tribunal fees (previously Administrative Appeals Tribunal)
- solicitor, barrister and other legal costs.
- certain interest charges we impose on you
- amounts we charge you for underestimating a varied goods and services tax (GST) instalment or pay as you go (PAYG) instalment
- expenses for complying with your legal obligations relating to another person's or other entity's tax affairs, including
- complying with the PAYG withholding obligations – for example, where you withhold tax from a payment to a supplier because the supplier doesn't quote an ABN
- providing information that we request about another taxpayer.
You incur an expense in 2024–25 when:
- you receive a bill or invoice for an expense that you're liable for and have to pay (even if you pay it after 30 June 2025)
- you don't receive a bill or invoice, but you're charged, and you pay for the expense.
If you don't incur any expenses in managing your tax affairs, go to question Deductions in the supplementary tax return 2025.
What you can't claim as a cost of managing your tax affairs
You can't claim a deduction for:
- tax shortfall and other penalties for failing to meet your obligations
- tax advice you receive from a person who isn't a recognised tax adviser
- receiving financial advice that isn't in relation to managing your tax affairs
- any judgment debt interest that you have to pay as a result of a court case involving your tax affairs.
Completing your tax return
To complete this question, follow the steps.
Step 1
Separate the costs of managing your tax affairs into the following 3 components:
- interest charged by the ATO
- litigation costs
- other expenses incurred in managing your tax affairs.
Step 2
Add up the costs for each component.
Step 3
Write the total cost for each component at question D10 as follows:
- interest charged by the ATO at label N
- litigation costs at label L
- other expenses incurred in managing your tax affairs at label M.
Where to go next
- Go to Deductions in the supplementary tax return 2025.
- Return to main menu Individual tax return instructions 2025.
- Go back to question D9 Gifts or donations 2025.