Private ruling: Deductions - self-education expenses
Date of advice: 1 April 2025
Published: 10 June 2025
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Would travel costs associated with attending a geo-fenced digital medical conference be deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997), where physical presence within 50km of the conference location is required to access the conference content? | A1: Yes, a deduction is allowable for travel costs associated with attending self-education that is for the purpose of gaining or producing your assessable income under section 8-1 of ITAA 1997 to the extent that the travel is not private or domestic in nature. | Q2: Would accommodation costs associated with attending a geo-fenced digital medical conference be deductible under section 8-1 of the ITAA 1997, where physical presence within 50km of the conference location is required to access the conference content? | A2: Yes, but would need to be apportioned to the extent there is any additional purpose to the travel, such as a holiday or any other private or domestic purpose. | Q3: Would meal costs associated with attending a geo-fenced digital medical conference be deductible under section 8-1 of the ITAA 1997, where physical presence within 50km of the conference location is required to access the conference content? | A3: Yes, but would need to be apportioned to the extent there is any additional purpose to the travel, such as a holiday or any other private or domestic purpose. | Q4: Would conference registration fees to attend a geo-fenced digital medical conference be deductible under section 8-1 of the ITAA 1997, where physical presence within 50km of the conference location is required to access the conference content? | A4: Yes

Relevant facts and circumstances: You are a self-employed registered medical practitioner in Australia. You are intending on attending a conference. The conference is being held approximately 100km from your residence. The conference runs for 7 days. Daily sessions run for 4 hours per day. The conference content is delivered entirely in digital video format, accessible only through personal devices. The learning takes place through a structured virtual conference platform, which allows delegates to access sessions from their accommodation or designated conference areas. Content is structured to ensure engagement, including live Q&As, interactive discussions, and recorded sessions for ongoing review. Access to conference content is technically restricted through geo-fencing technology to within 50km of the location of the Conference. Content cannot be accessed outside of designated conference hours or from other locations. Some networking events will be held at during the week at in person events. The conference is specifically designed for medical professional and covers the following topics: - Medical topics and clinical updates - Professional indemnity and risk management - Medicolegal issues and compliance - Doctor well-being and mental health - Healthcare industry financial management The conference is scheduled with holiday periods.

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

Reasons for decision: Summary: Yes, a deduction is allowable for travel costs associated with attending self-education that is for the purpose of gaining or producing your assessable income under section 8-1 of the ITAA 1997 to the extent that the travel is not private or domestic in nature. Detailed reasoning Section 8-1 of the ITAA 1997 states that you can deduct a loss or outgoing from your assessable income to the extent that it is incurred in gaining or producing your assessable income, and the expense is not private or domestic in nature. Taxation Ruling TR 2024/ 3 Income tax: deductibility of self-education expenses incurred by an individual (TR 2024/3) sets out the Commissioners view on the deductibility of self-education expenses. The words "in gaining or producing assessable income" are understood to mean "in the course of gaining or producing assessable income and not merely "in connection with" or "for the purpose of" deriving assessable income. Paragraph 16 states that it is not enough to show that there is some perceived connection, general link or casual connection between the expense and the production of income. There must be a close connection between the performance of the duties and activities through which your income is earned, and the expense. Paragraph 18 states that where your income earning activities are based on the exercise of a skill or having specific knowledge, the self-education expenses incurred to maintain or improve that knowledge or your ability to exercise those skills are deductible. TR 2024/3 outlines the Commissioner's approach to apportionment in relation to self-education expenses that may only be deductible in part. Paragraph 85 states to apportion self-education expenses as follows when there is an incidental purpose: - If the purpose of the self-education is the gaining or producing of assessable income, the existence of an incidental private purpose does not affect the characterisation of the self-education expense as wholly incurred in gaining or producing assessable income. - If you are on a holiday or attending an event for a private purpose and the self-education was merely incidental to the private purpose, only those expenses directly attributable to the self-education (provided they are incurred in gaining or producing your assessable income) are allowable. Example 20 of TR 2024/3 shows the apportionment of expenses where there are two equal purposes for travel. It states where there are two equal purposes for travel, only half of the travel expense is deductible. Application to your circumstances The travel expenses incurred to travel to a conference that is geo-fenced to within a 50km radius of the conference location are deductible under section 8-1 of the ITAA 1997 to the extent that it is not private or domestic in nature, and it is incurred in gaining or producing your assessable income. As a self-employed registered medical professional, the subject of the conference is closely linked to the gaining or producing of your assessable income. The conference contents as listed in the relevant facts and circumstances is directly related to the performance of the duties and activities of a self-employed medical professional and maintains or improves your skill and specific knowledge. As per paragraphs 81-95 in TR 2024/3, the travel cost will need to be apportioned if there is an additional purpose to the travel, such as a holiday or any other private or domestic purpose. Apportionment can be calculated on a 'time used' basis as explained on the page titled 'Self-education expenses' viewable at ato.gov.au by searching QC72166. | Summary: Yes, a deduction is allowable for accommodation costs associated with attending self-education that is for the purpose of gaining or producing your assessable income under section 8-1 of the ITAA 1997 to the extent that the travel is not private or domestic in nature. Detailed reasoning Please see detailed reasoning in Question 1 for analysis on whether self-education expenses are incurred in gaining or producing assessable income, and how apportionment of deductions would apply in line TR 2024/3. Application to your circumstances Accommodation expenses incurred when attending the conference will be deductible under section 8-1 of the ITAA 1997 to the extent that the expense is incurred in gaining or producing your assessable income and the expense is not private or domestic in nature. As a self-employed registered medical professional, the subject of the conference is closely linked to the gaining or producing of your assessable income. The conference contents as listed in the relevant facts and circumstances is directly related to the performance of the duties and activities of a self-employed medical professional and maintains or improves your skill and specific knowledge. As per paragraphs 81-95 in TR 2024/3, the accommodation cost will need to be apportioned if there is an additional purpose to the travel, such as a holiday or any other private or domestic purpose. Apportionment can be calculated on a 'time used' basis as explained on the page titled 'Self-education expenses' viewable at ato.gov.au by searching QC72166. | Detailed Reasoning - Question 3: Summary Yes, a deduction is allowable for meal costs associated with attending self-education that is for the purpose of gaining or producing your assessable income under section 8-1 of the ITAA 1997 to the extent that the travel is not private or domestic in nature. Detailed reasoning Please see detailed reasoning in Question 1 for analysis on whether self-education expenses are incurred in gaining or producing assessable income, and how apportionment of deductions would apply in line TR 2024/3. Application to your circumstances Meal expenses incurred when attending the conference will be deductible under section 8-1 of the ITAA 1997 to the extent that the expense is incurred in gaining or producing your assessable income and the expense is not private or domestic in nature. As a self-employed registered medical professional, the subject of the conference is closely linked to the gaining or producing of your assessable income. The conference contents as listed in the relevant facts and circumstances is directly related to the performance of the duties and activities of a self-employed medical professional and maintains or improves your skill and specific knowledge. As per paragraphs 81-95 in TR 2024/3, the meal cost will need to be apportioned if there is an additional purpose to the travel, such as a holiday or any other private or domestic purpose. Only meal expenses incurred while travelling for the self-education will be deductible. If your travel is extended for private or domestic purposes, for example you combine the conference time with a personal holiday, the meal expenses incurred outside the conference period will be private or domestic in nature and not deductible under section 8-1 of the ITAA 1997. | Detailed Reasoning - Question 4: Summary Yes, a deduction is allowable for conference registration fees associated with attending self-education that is for the purpose of gaining or producing your assessable income under section 8-1 of the ITAA 1997 to the extent that the travel is not private or domestic in nature. Detailed reasoning Please see detailed reasoning in Question 1 for analysis on whether self-education expenses are incurred in gaining or producing assessable income, and how apportionment of deductions would apply in line TR 2024/3. Application to your circumstances Conference registration fees incurred to attend the conference will be deductible under section 8-1 of the ITAA 1997 to the extent that the expense is incurred in gaining or producing your assessable income and the expense is not private or domestic in nature. As a self-employed registered medical professional, the subject of the conference is closely linked to the gaining or producing of your assessable income. The conference contents as listed in the relevant facts and circumstances is directly related to the performance of the duties and activities of a self-employed medical professional and maintains or improves your skill and specific knowledge. Therefore, the conference fees you incur attending the conference will be deductible under section 8-1 of the ITAA 1997.