Private ruling: Deductibility of self-education expenses
Date of advice: 16 November 2018
Published: March 2019
Ruling period: Year ending 30 June 2019 | Year ending 30 June 2020
Date scheme commenced: 1 July 2018

Ruling: Q1: Is the expenditure incurred on academic study undertaken by a salaried employee deductible under section 8-1 of the Income Assessment Act 1997 (ITAA 1997)? | A1: Yes. You have demonstrated that the course of education has a nexus to your current employment. You require these skills in your present position and the course will further develop your skills in these areas and could lead to increase in future income in your present position. As you have met the requirements for eligibility for a deduction of self-education expenses, you are entitled to claim a deduction for the amount you will incur with tuition fees as outlined in Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business and section 8-1 of the ITAA 1997. Note that documentation satisfying the requirements of sections 900-15 or 900-120 of the ITAA 1997 is required to substantiate the expenses included in these claims and apportioned appropriately.

Relevant facts and circumstances: You are currently employed as Human Resources Manager and are responsible for all aspects of human resource management for the project’s employees. You will be working full time in your current position for the entirety of the course that runs for two financial years. The course fees are a significant amount. You will be paying for the course with no assistance this will be in aggregate payments being spread over the two financial years.

Relevant legislative provisions: Income Assessment Act 1997 section 8-1 | Income Assessment Act 1997 section 26-20 | Income Assessment Act 1997 section 900-115 | Income Assessment Act 1997 section 900-120