Private ruling: : Self-education expenses
Date of advice: 8 August 2022
Published: November 2022
Ruling period: The year ended 30 June 20XX | The year ending 30 June 20XX | The year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 for the course fees you incurred in undertaking a Graduate Diploma of Psychology? | A1: Yes. Your self-education expenses are deductible as they have a direct connection with your income earning activities. The study meets the requirements detailed in Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business . Note that your self-education expenses deduction may have to be reduced by up to $250. For more information about the deductibility of self-education expenses search QC 31970 on the ATO website at ato.gov.au.

Relevant facts and circumstances: You are employed as Head of Customer and Stakeholder Relations with your employer. You commenced a Graduate Diploma of Psychology at an educational institution (the course). You are paying your course fees upfront prior to the commencement of each subject. Your employer is not reimbursing you for the course fees. Your employer has provided a detailed letter confirming that the course has a nexus with your employment duties. You intend to stay employed with your employer upon completion of the course. You intend to use the knowledge you obtain from the course in your current role.

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