01/09/2026
✈️ 𝗖𝗮𝗻 𝗬𝗼𝘂 𝗖𝗹𝗮𝗶𝗺 𝘁𝗵𝗲 𝗖𝗼𝘀𝘁𝘀 𝗼𝗳 𝗚𝗲𝘁𝘁𝗶𝗻𝗴 𝗕𝗮𝗰𝗸 𝘁𝗼 𝗪𝗼𝗿𝗸? 𝗡𝗼𝘁 𝗔𝗹𝘄𝗮𝘆𝘀! ✈️
A recent Administrative Review Tribunal (ART) case involving an airline pilot highlights an important distinction when it comes to work-related deductions.
The taxpayer incurred medical expenses to regain the medical certificates required to hold his pilot licence after being advised by the Civil Aviation Safety Authority of the steps he needed to take.
He claimed the expenses as a tax deduction, but the ATO disallowed the claims and the ART agreed.
Why?
The expenses were considered to have put the taxpayer in a position to earn income, rather than being incurred in the actual process of earning that income.
The ART described the expenses as being incurred “too soon” to qualify as a deduction, even though some of the costs were incurred after the taxpayer had returned to employment.
The takeaway: An expense can be directly connected to your career and still not be deductible. The timing and purpose of the expense matter.
If you’re unsure whether an expense is genuinely deductible, it’s worth getting professional advice before claiming it.
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