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  • Changes to how you claim the cost of managing tax affairs

    As you would be aware, the cost of managing tax affairs deduction label on the individual tax return currently aggregates a number of different expenses including ATO interest charges and litigation costs. The aggregation of these expenses distorts interpretation and analysis of what costs are actually being claimed.

    To provide a more accurate representation of what costs are being claimed, we are going to split the costs of managing tax affairs deduction label on the 2018 individual tax return into the following three sub-components:

    • interest charged by the ATO
    • litigation costs
    • other expenses incurred in managing your tax affairs.

    To complement this change, we will also add a new category to the other income label (24) to capture assessable amounts of ATO interest charges.

      Last modified: 22 Nov 2017QC 53951