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1 Are the legal expenses you incurred pursuing legal proceedings that occurred on the X dates associated with the stop bulling application deductible under section 8-1 of the Income Tax Assessment Act 1997?
Yes, the associated legal expenses in relation your lawyer filing a stop bullying application is sufficiently to the earning of your assessable income and are therefore deductible under section 8-1 of the Income Tax Assessment Act 1997 . Question 2 Are the legal expenses you incurred occurred on the X dates associated with your work cover partially deductible under section 8-1 of the Income Tax Assessment Act 1997, in accordance with the amounts sought for compensation time off work? Answer Yes, the associated legal expenses in relation to seeking compensation time off work is sufficiently to the earning of your assessable income and are therefore deductible under section 8-1 of the Income Tax Assessment Act 1997 . This ruling applies for the following period : Year ended on 30 July 20XX The scheme commenced on: 12 January 2024
You were employed by your Employer as XX. Your employer indicated that your employment was being reviewed due to perceived performance issues. You initiated spoke to a lawyer on XX to talk about possible defences to your employment. On the XX of XX you reached an agreement with your employer and signed a deed of release which in exchange for your resignation gave you: • $XX as an employee termination payment, • $XX in unpaid Super, • Any unpaid annual leave and long service entitlements subject to the date of resignation. On the XX of XX your resignation took place. During the initial contact and settlement you incurred several different legal expenses in the act of defending your employment including: • Between XX you established what had happened, reviewed available tactics if your employer sought to terminate your employment. • Between XX and XX you sought advice on how to respond to without prejudice letters that your employer sent. • On XX you sought assistance with your Workcover statement, which alleged that you had been bullied and had suffered a psychological injury.
• On XX and XX was assistance related to negotiating the Deed of Settlement. • On XX and XX your lawyer filed a stop bullying application with the Fair Work Commission.
Income Tax Assessment Act 1997 section 8-1
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