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Edited version of private advice
Authorisation Number: 1052409464904
Date of advice: 17 June 2025
Ruling
Subject: Legal expenses
Question 1
Are you entitled to a deduction for legal fees in the relevant income years relating to the defence of your work performance?
Answer 1
Yes.
Based on the information provided to the Commissioner you are entitled to a deduction for your legal fees.
The legal fees have the relevant connection with your employment as a nurse and were incurred in defending your performance as a nurse.
These legal expenses are an allowable deduction under Section 8-1 of the Income Tax Assessment Act 1997.
This ruling applies for the following periods:
20XX-XX income year
20XX-XX income year
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You were employed by Employer Z.
Your employer raised concerns around your workplace conduct and professional behaviour.
Your employer raised concerns relating to your conduct and performance while at work.
Your employer intended to terminate your employment.
You engaged the services of a lawyer to represent you with the matters raised.
The legal advice was to prevent the loss of your employment and loss of income from wages.
You remained employed throughout the investigation by your employer.
You incurred legal expenses in the relevant income years.
You paid the final legal invoice a few months ago.
Your employment was terminated a number of weeks after you paid the invoice.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1
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