Who can claim
This deduction is available to individuals and companies.
- The expense is incurred in carrying on an existing income-producing business.
- Any private, capital or non-income-producing component is reasonably apportioned or excluded.
- The advice or service relates to operating the existing income-producing business.
What you cannot claim
- Do not include private drawings or personal expenses.
- Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense.
- Business establishment, acquisition, structural or capital legal costs need separate treatment.
- Private legal advice is excluded.
How the amount is worked out
Claim the deductible revenue portion. Consider the tax-affairs rules where the service relates to tax compliance.
Records the ATO expects
- Detailed invoice
- Matter description
- Apportionment basis
Where this rule comes from
Primary source: ATO business income and deductions (Updated 1 June 2023). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.