Private ruling: Work related expenses
Date of advice: 12 December 2025
Published: 2 February 2026
Ruling period: Year ended 30 June 20YY
Date scheme commenced: 1 July 2020

Ruling: Q1: Are you entitled to claim a deduction for the course under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No. | Q2: Are you entitled to claim a deduction for other expenses associated with the course under section 8-1 of the ITAA 1997? | A2: No.

Relevant facts and circumstances: You work full-time as an engineer in a particular profession. You have worked in this position for a few years. Your current duties include a wide range of complex technical, operational, and quality issues that cannot be resolved by customer. You completed a course over several months. You spent several hours per week on this course including travel time. You believe the course is relevant to your current position. Your employer did not reimburse you for any of the costs associated with the course. You incurred course fees and other expenses. You will not use the skills obtained from the course in a commercial setting. You will use the skills obtained privately.

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. Self-education expenses are deductible under section 8-1 where they have a relevant connection to the taxpayer's current income earning activities. Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual discusses circumstances in which self-education expenses are allowable. 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 (paragraph 22 of TR 2024/3). 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 their current income earning activities in the future', a deduction is allowable. However, no deduction is allowable for self-education expenses if the study will enable you to get employment, to obtain new employment or to open up a new income-earning activity (whether in business or in your current employment). This includes studies relating to a particular profession, occupation or field of employment in which you are not yet engaged. These expenses are incurred at a point too soon to be regarded as incurred in gaining or producing your assessable income. No deduction is allowed where the self-education is of a private nature. To be able to claim a deduction, the expenses must relate to your income earning activities at the time of incurring the expense (paragraph 72 of TR 2024/3). In determining whether a deduction is allowable for self-education expenses there would need to be an examination of how the courses are connected to your income earning activities at the time the expenses were incurred. In your case you are currently employed as an engineer. You have been employed in the same position for a few years. You undertook the course over several months. You will not use the skills obtained from the course in a commercial setting. While you may have learned many things which provided knowledge to your employment you are not required to have the relevant licence to undertake your work duties. A course may be useful to your employment activities but this does not make it deductable. You can maintain your employment without the course. You are not able to claim a deduction for the costs associated with the course under Section 8-1 of the ITAA 1997.