Private ruling: Self-Education Expenses
Date of advice: 20 June 2018
Published: August 2018
Ruling period: Period ending 30 June 20XX | Period ending 30 June 20XX | Period ending 30 June 20XX | Period ending 30 June 20XX | It is noted that you asked for the private ruling to apply for the 20XX-XX income year and onwards for up to 6 years. The Commissioner does not rule for indefinite or extended periods as there may be changes to the facts of the arrangement or the law in question. Also, a public ruling may issue which affects the private ruling. Therefore, we have only ruled for the 20XX-XX to 20XX-XX income years.
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are your self-education expenses for your Bachelor’s Degree xxxx allowable deductions? | A1: Yes Section 8-1 of the Income Tax Assessment Act 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 TR98/9 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. It is considered that the Bachelor degree of xxxx sufficiently relates to and improves upon the skills or knowledge used in your current income earning activity. Therefore, you are entitled to a deduction for the course fees (less your employer’s 75% contribution), student fees, stationery, text books, laptop, printer and home office costs relevant to your studies. Information on self-education expenses including how to calculate your claim can be found on our website ato.gov.au and entering quick code QC31970 into the search bar at the top right of the page.

Relevant facts and circumstances: You work full time at xxxx. You have worked at xxxx years. You work in IT as a Functional Analyst in the Enterprise Division providing solution design and reporting to government agencies. You analyse requirements and system functionality to deliver solutions for clients. Your current work duties include solution design, analysis and configuration of a whole of government system which provides grants and reporting solutions to government agencies. The system is powered by SAP and Tableau software reporting. Your employer supports you and has approved agreeing to pay xxxx% of your fees. This will be paid in arrears after you have passed each unit. You have enrolled to study xxxx online study. You expect to complete course in xxxx years studying part time. The course consists of xxxx. You have set up your home office for your studies and when you work from home. You have purchased a laptop, printer, monitor stand, desk, chair and other office supplies.

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