Fergus is employed as an IT Systems Team Leader by a large bank in Sydney. His employment
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Question:
Fergus has incurred council rates, insurance, and mortgage interest during the year ended 30 June 2023 totaling $16,000. Based on the hours Fergus was on call, work-related electricity, internet, telephone and water use for the home office and storage room was $750 for the year ended 30 June 2023. Fergus purchased a new laptop on 1 December 2022 for $1,400 which he used 30% for work purposes.
Fergus began experiencing workplace bullying which caused him to experience stress and anxiety. Fergus hired a solicitor to assist him in bringing a claim against his employer at the Fair Work Commission. He incurred a significant amount of legal costs during this dispute, receiving an invoice from his solicitor for $4,400 on 15 June 2023. Fergus paid this amount on 10 July 2023. Fergus also incurred medical fees of $800 relating to the stress caused by the bullying.
Required:
Discuss whether any of the expenditure incurred by Fergus would be allowable as a deduction during the year ended 30 June 2023 under s8-1 ITAA 1997. You must refer to relevant legislation, case law and/or rulings in answering this question.
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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