Private ruling: Deduction-self-education
Published: August 2011
Ruling period: Year ended 30 June 2009
Date scheme commenced: Relevant facts

Ruling: Q1: Are you entitled to a deduction for your course fees incurred to study at a university? | A1: 


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 in which self education expenses are allowable as a deduction including where a taxpayer's current income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of self education enables the taxpayer to maintain or improve that skill or knowledge. Similarly, if the study of a subject of self-education objectively leads to, or is likely to lead to an increase in a taxpayer's income from his or her current income earning activities in the future, a deduction is allowable. In your case you are studying at a university. It is accepted that this course will maintain and enhance the skills that are required in the performance of your current income-earning activities. Consequently, as there is the necessary connection between the course and your current income-earning activities you are entitled to claim a deduction for your self-education expenses under section 8-1 of the ITAA 1997.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns. | The scheme commences on: 1 July 2008 | After you commenced your current employment, you began studying at a university. | You have chosen to focus your studies on subjects that are relevant to your current income-earning activity. | You have paid course fees.