Private ruling: Self-education expenses
Published: February 2014
Ruling period: Year ending 30 June 2014 | Year ending 30 June 2015
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to claim a deduction for self-education expenses? | A1: Yes


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. Taxation Ruling TR 98/9 discusses the circumstances in which self-education expenses are allowable as a deduction including where a taxpayer's current 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. 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 his or her current income earning activities in the future, a deduction is allowable. In your case, you are employed in a particular occupation. It is accepted that the course will enable you to maintain or improve the skills that are required for you to perform your employment duties, and that the purpose for undertaking the course is work related. As the course will enhance your existing skills and knowledge required in your current employment, the semester and material fees, you have incurred have the necessary and relevant connection with the earning of your assessable income and are therefore deductible under section 8-1 of the ITAA 1997.

You were in a particular profession overseas and as there are different practices and regulations used in Australia in this field, your employer has required you to study a related course. | You have enrolled in this course and have paid for the first semester and material fees