Private ruling: Income tax - self-education
Date of advice: 16 February 2024
Published: 2 April 2024
Ruling period: Year ended 30 June 20YY | Year ended 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Are you entitled to a deduction for the self-education expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs of undertaking a Master of Subject A course at a State University? | A1: Yes. Your self-education expenses are deductible under section 8-1 of the ITAA 1997. The expenses you incurred to complete the Master of Subject A course allowed you to improve the knowledge and skills required to carry out your current income-earning activities. The course did not enable you to get employment, to obtain new employment or to open up a new income-earning activity. To claim a deduction for a work-related expense, you must have spent the money yourself and weren't reimbursed. Further information about self-education expenses can be found in Taxation Ruling TR 2023/D1 Income tax : deductibility of self-education expenses incurred by an individual.

Relevant facts and circumstances: On XXXX, you commenced employment with Employer A. Your employment contract for your position states the role overview and role responsibilities. On XXXX you commenced a university course. You completed twelve course subjects. Your employer supported your aim to complete the course. You received significant encouragement and support. The company recognised the value of enhancing your skills, which directly aligned with their core services. You received ten days of study leave per quarter and career advancement opportunities. The cost of each subject varied from $XX to $XX. You are paying for the course fees using the Higher Education Loan Program (HELP). You are not receiving any government allowance to study (including Abstudy, Austudy or Youth Allowance). You are not receiving a taxable bonded scholarship. You completed the course on XXXX The course was undertaken to improve skills in your role with Employer A.

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