Private ruling: Income tax - self-education
Date of advice: 13 May 2022
Published: August 2022
Ruling period: year ending 30 June 2022 | year ending 30 June 2023
Date scheme commenced: 11 October 2021

Ruling: Q1: Are you entitled to a deduction for self-education expense for your professional development course? | A1: Yes. Your self-education expenses are deductible, as it is accepted the study meets the requirements detailed in Taxation Ruling TR 98/9.

Relevant facts and circumstances: You have been employed full-time with XXX since XXXX. You previously completed relevant industry qualifications. On XXXX you commenced a Graduate Diploma of XXX with XXX. Your intention for undertaking the course is to enhance your skills and knowledge that will assist you in your current role and is likely to lead to promotion and an increase in income. You will be able to work on more difficult issues and initiatives. By undertaking this course, you will be able to better assist your clients. Currently, you have to refer some clients to a third party. The course will also enable you to obtain the required ASIC professional education qualifications. The course is directly related to your employment as it will enable you to achieve more responsibility, more pay and more opportunities. You are not undertaking the course to obtain new employment with another employer. Upon completion of the course your position title will be XXX and you will remain employed with XXX. Your employer supports your ambition to undertake the course. You do not receive Austudy, ABSTUDY or Youth Allowance to study. You do not receive a taxable bonded scholarship. You do not receive an allowance or reimbursement for the expenses incurred in relation to this course. The course duration is 1.25 years full time or equivalent part time (2.5 years). You will incur the following costs relating to the course: • Course fees: $XX • Printing and Binding charges for printing books: $XX • Internet Charges: $XX • Stationery: $XX • Subscription: $XX You intend to complete the course by XXXX

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