Private ruling: Residency for taxation purposes
Date of advice: 27 February 2018
Published: June 2018
Ruling period: Year ending 30 June 2018
Date scheme commenced: DD MMM 2017

Ruling: Q1: Are you entitled to claim work related education expenses? | A1: Yes

Relevant facts and circumstances: You are employed in a professional services company, with whom you commenced employment in 20XX You have been in your current role for X years You are responsible for a team of X people Your duties include strategic development, financial performance, project planning and delivery You commenced a your course of study in 20XX You employer provides funds per annum towards study fees in addition to study leave at 1 day per unit of study Your employer believes that the course will improve the skills you require to perform your current duties Your employer and position have not changed

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 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. Most self-education expenses are incurred voluntarily and to be allowable under section 8-1of the ITAA 1997, the expenditure must be characterised as having been incurred in gaining or producing assessable income Taxation Ruling TR 98/9 discusses the circumstances under which self-education expenses are allowable as a deduction. 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 ( Federal Commissioner of Taxation v. Finn (1961) 106 CLR 60, (1961) 12 ATD 348). In this case, the normal work-related self-education rules will apply. We accept that the position of your current role and the course outcomes align significantly. The course maintains and improves skills and specific knowledge that you exercise in your current income earning capacity. | Detailed Reasoning - Conclusion: It is considered that the study will maintain or improve your skill or knowledge used in your current income earning activity. Consequently you are entitled to a deduction for the course fees incurred, textbooks and the cost of accommodation related to attend this course.