Can I claim the fees my NRAS provider charges

Most (or all ?) NRAS providers charge annual fees. I have noted some have been increasing a bit.

Question : Can I claim a deduction for these?

No. The NRAS provider role is to deal with the NRAS claims for state and commonwealth incentives often with Dept of Human Services etc. The income (tax credits) comprises exempt income (Commonwealth tax credit) and non-assessable non-exempt income (NANE being the State amnt)

Accordingly the fee is not deductible as the fee does not arise from producing assessable income

I have noted recent telephone enquiries from the ATO checking if the client deductions includes NRAS costs. Obviously a new area of compliance checking

 

When I read the heading my initial thought was NO for the same reasons. It is a cost that doesn't related to assessable income under s8-1 wouldn't be claimable.