Primarius Blog - Claiming expenses - check out Section 8-1

Muriel Oliver
Update | 3 Apr 2024

Australia has this unique system of self-assessment for income tax.  This means that the taxpayer determines for themself if any expense is able to be claimed.

The catch-all provision is the "general deduction provision"


General deductions

 (1)  You can deduct from your assessable income any loss or outgoing to the extent that:

 (a)  it is incurred in gaining or producing your assessable income; or

 (b)  it is necessarily incurred in carrying on a business for the purpose of gaining or producing your assessable income.

Note:  Division   35 prevents losses from non - commercial business activities that may contribute to a tax loss being offset against other assessable income.

 (2)  However, you cannot deduct a loss or outgoing under this section to the extent that:

 (a)  it is a loss or outgoing of capital, or of a capital nature; or

 (b)  it is a loss or outgoing of a private or domestic nature; or

 (c)  it is incurred in relation to gaining or producing your exempt income or your non - assessable non - exempt income; or

 (d)  a provision of this Act prevents you from deducting it.

For a summary list of provisions about deductions, see section   12 - 5.

 (3)  A loss or outgoing that you can deduct under this section is called a general deduction .

Refer to the full details - click here for ATO link.

Disclaimer: This information is general in nature, and this is a complex area of law, and you should examine the application to your situation carefully under the criteria set out in the legislation (which is still under development and clarification), so before acting it is important to seek professional advice related directly to you and your circumstances, contact your Primarius team leader, or email us at if you require assistance.

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