From 1 July 2018 where you have expenses of this nature, the ATO requires you to lodge a Deductions schedule (DDCTNS)
Expenses at Item D10 are split into 3 categories:
- Label N – Interest charged by the ATO
- Label L – Litigation costs
- Label M – Other expenses incurred in managing your tax affairs.
Fees paid to a recognised tax adviser are deductible in the year they are incurred.
You cannot claim for the cost of tax advice given by a person who is not a recognised tax adviser.
Click any label at D10 to open to Cost of managing tax affairs (cmt). You must detail each expense and you can make up to 20 entries.
When you close the worksheet, we'll add up the amounts for the three categories of expenses and pass them to:
Item D10, one or all of labels N, L and M
Deductions schedule D10