Noel is a solicitor (lawyer) who operates his own business in Toowoomba providing legal advice to businesses. He has four employees. He incurred the following expenses during the current year of income:

• Four sets of uniform for his staff which individually cost $200 (total $800). The uniform has the firms logo and must be worn at all times by staff when they are working.

• Seminar expenses of $500 paid for himself and his employees to attend technical presentation relevant to the business.

• Travelling costs of $1200 paid to a new employee to reimburse the employee for his relocation costs from Sydney to Toowoomba.

What is the total amount that is deductible under section 8-1 ITAA 97 for the above expenditure during the current income tax year?

Select one:

1. $800.

2. $2470.

3. $2970.

4. $1270.

5. $2500.