Private ruling: Work-related/self-education expenses
Date of advice: 8 October 2025
Published: 1 December 2025
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to claim a partial deduction for airfare expenses incurred, under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No | Q2: Are you entitled to claim a partial deduction for accommodation expenses incurred, under section 8-1 of the ITAA 1997? | A2: No | Q3: Are you entitled to claim a deduction for public transport expenses incurred, under section 8-1 of the ITAA 1997? | A3: No | Q4: Are you entitled to claim a deduction for the soundproof room rental and travel insurance expenses incurred, under section 8-1 of the ITAA 1997? | A4: No

Relevant facts and circumstances: In July 20XX, you commenced performing duties on a casual basis, as a sessional academic, teaching into postgraduate coursework in Trimester 3; and enrolled as a Higher Degree by Research (HDR) candidate, with active revisions underway for your PhD in gender equity and sport governance. Your teaching duties as a sessional academic are not a formal requirement of the Higher Degree by Research program. You were employed casually from 20XX to 20XX and employed on a part-time contract from 20XX to 20XX. You departed Australia to undertake an unpaid internship overseas. The internship was directly related to your employment and provided practical and current expertise related to your employment, including the design and delivery of gender equity and safeguarding programs in sport, research and policy writing, and collaboration with other organisations. The internship was completed after 2 months. Your supervisory team encouraged you to undertake the internship however, it was not a formal requirement of your employment. The formal start date of the internship was XX 20XX however, the position was originally advertised to commence at an earlier date. Accordingly, you made travel and accommodation arrangements and departed Australia on the earlier date, commencing preparatory work upon arrival overseas. You engaged in the following activities: You arranged access to a soundproofed room to perform work duties online, outside of standard office hours, to meet your employment obligations and maintain income during the internship period. You returned to Australia. You resumed work immediately upon return and applied the knowledge and experience gained to your employment duties. You are claiming the following expenses in relation to the internship: All expenses were personally funded, and you were not reimbursed for any costs incurred.

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

Reasons for decision: Summary: Based on the information provided, we accept that there is a nexus between your income earning activities and the internship undertaken. The work-related portion of the airfare, accommodation and public transport expenses incurred are allowable deductions. The expenses incurred for the teaching room rental and travel insurance are considered private expenses and are not deductible. | Detailed Reasoning - Detailed reasoning: In general terms, self-education expenses incurred in attending educational institutions are deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) where the expenses have the necessary connection in gaining or producing the taxpayer's assessable income. For a deduction of self-education expenses to be allowable you also need to meet the following governing principles contained in Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual . a) The taxpayer's 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. b) The study of a subject of self-education objectively leads to, or is likely to lead to, an increase in the taxpayer's income from his or her current income-earning activities in the future. There must be a relationship, or close connection, between the expenditure and what it is that you do to produce your assessable income. It is not enough to show only that there is some perceived connection, general link or causal connection between the expenditure and the production of your income. The expenditure must have a close connection to the performance of the duties and activities through which you earn your income. Having the support or encouragement of your employer to undertake the self-education is not, by itself, determinative of whether the expense is deductible. The fact that you incur an expense on a voluntary basis that is not at the direction of your employer does not necessarily preclude a deduction. A partial deduction may be appropriate where only part of your expense is for self-education connected with your income-earning activities or where only part of the self-education is relevant to your current income-earning activities. TR 2024/3 sets out the guidelines on the apportionment of expenses incurred where only part of the travel is work related. Self-education expenses that are allowable under section 8-1 of the ITAA 1997 include course or conference fees, airfares incurred on overseas study tours or sabbatical, on work-related conferences or seminars and where a taxpayer is away from home overnight, accommodation and meals expenses incurred on overseas study tours or sabbatical, on work-related conferences or seminars, or attending an educational institution. | Detailed Reasoning - Application to your circumstances: In your situation, we are satisfied that the internship improved your skills and knowledge. The Commissioner accepts there is an identifiable nexus or connection between the internship and your employment duties. Consequently, your self-education expenses for the internship are sufficiently connected to your employment. The work-related portion of costs are therefore deductible under section 8-1 of the ITAA 1997. Expenses that are considered private in nature as detailed below, are not deductible during the whole period of the internship. AIRFARES You are entitled to claim the work-related portion of the total costs of your overseas airfares. 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. ACCOMMODATION You are entitled to claim the work-related portion of the total costs incurred for accommodation while overseas. 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. PUBLIC TRANSPORT You are entitled to claim public transport expenses incurred when you travelled from your home to the internship location and back home. If your travel was for both work and private purposes, you can only claim the expenses that were for work purposes. You'll need to keep records and apportion your travel expenses. SOUNDPROOF ROOM You are not entitled to a deduction for the cost of renting a soundproof room under section 8-1 of the ITAA 1997, as this expense is private in nature. As it was a personal choice to continue working remotely during the internship period to meet your employment obligations and maintain income, the costs incurred to rent a soundproof room to deliver live online classes is considered a private expense. It was not a condition or requirement of your employment to rent a room instead of delivering the courses from where you were living. TRAVEL INSURANCE You are not entitled to a deduction for the cost of travel insurance under section 8-1 of the ITAA 1997, as this expense is private in nature. Travel insurance costs are generally considered to be a private expense as they are merely pre-requisites to the carrying out of a course of study overseas, not a cost of the actual course.

securing accommodation suitable for an extended stay aligned with the internship dates, | establishing a co-working facility with high-speed internet to support continued employment obligations, | completing administrative onboarding tasks associated with the internship, | orientation to the local area, transit routes, and internship operational context.