Private ruling: Overseas self-education expenses
Published: September 2014
Ruling period: Year ended 30 July 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you entitled to a deduction for self-education? | A1: Yes.

Relevant facts and circumstances: You are currently employed. You are planning to undertake a course, specialising in the same particular topic in which you specialise in your employment. You will keep diary records and substantiation in relation the expenses you will incur, including the apportionment of expenses that may be used for private purposes.

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. Taxation Ruling TR 98/9 discusses the circumstances under which self-education expenses are allowable as a deduction. A deduction is allowable for self-education expenses if a taxpayer's current income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of the self-education enables the taxpayer to maintain or improve that skill or knowledge ( Federal Commissioner of Taxation v. Finn (1961) 106 CLR 60, (1961) 12 ATD 348. In your case, it is accepted that course will maintain or enhanced the skills that you required to perform your duties. Consequently, the self-education expenses you incurred does have a necessary and relevant connection with the earning of your assessable income and are allowable deductions under section 8-1 of the ITAA 1997.