Private ruling: Self-education expenses
Published: February 2012
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Question and answer: | Are you entitled to claim the cost of course fees associated with obtaining your Masters? | No.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are a professional. You undertook a Masters course. You received a grant to do this course. The grant covered the course fees.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income, except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income. | Detailed Reasoning - Self-education expenses: Self-education expenses are deductible under section 8-1 of the ITAA 1997 where there is a relevant connection to the taxpayer's current income-earning activities. If a taxpayer's income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of self-education enables the taxpayer to maintain or improve those skills or knowledge, the self-education expenses are allowable as a deduction. Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business sets out the Commissioner's view in relation to the deductibility of self-education expenses under section 8-1 of the ITAA 1997. For course fees to be deductible the person attending the course must have incurred the expense. In your case you received a grant which you negotiated to cover the fee cost. As the grantor paid the cost of the course fee you are not entitled to claim a deduction under section 8-1 of the ITAA 1997.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.