Philippa is a doctor. Last year, Philippa decided to quit her job with Big Hospital and commence a business as a sole practitioner based at her home. Philippa commenced her business on 1 July this year.

Philippa tells you:

• On 1 Feb this year, she paid $1,500 to register as a private doctor as required by law.
• On 3 March this year, she paid $3,000 legal costs in defending herself against an allegation she had breached Big Hospital patient privacy rules in posting selfies to her social media accounts while she was at work.

Required: advise Philippa on the deductibility of these expenses. Your advice must include reference to all relevant legislation, cases and/or rulings (5 marks each)