Private ruling: Self education expenses
Date of advice: 21 August 2017
Published: December 2017
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Can you claim a deduction for expenses incurred in connection with a self-education course? | A1: Yes. 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. It is considered that the study will maintain or improve your skill or knowledge used in your current income earning activity. As a consequence, you have incurred compulsory fees. Consequently you are entitled to a deduction for the course fees incurred, as well as stationery, text books, union fees and allowed travel.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are currently working as a medical professional. You are studying a relevant Degree at university, with the aim of becoming a qualified medical professional. You are currently in the final year of a three year degree. As you are not currently a permanent resident of Australia, you have paid your university fees upfront. You also had miscellaneous expenses for travel, stationery, Student Union fees, and text books. The fees are not HECS payment or a student contribution amount. You are doing this in order to broaden your knowledge and advance your career with the view to promotion and higher salary.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1 and | Income Tax Assessment Act 1997 Section 82A.