Private ruling: Self-education expenses
Published: August 2011
Ruling period: Year ended 30 June 2010 | Year ended 30 June 2011
Date scheme commenced: 1 July 2009

Ruling: Q1: Are you entitled to claim a deduction for expenses incurred for your psychology course? | A1: No.


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 circumstances in which self-education expenses are allowable as a deduction under section 8-1 of the ITAA 1997. If a taxpayer's current income-earning activities are based on the exercise of a skill or some specific knowledge and the self-education enables the taxpayer to maintain or improve that skill or knowledge, the self-education expenses are allowable as a deduction. For self-education expenses to be deductible there must be a nexus between the course of study and the duties of the taxpayer's current employment. The psychology course you undertook is specifically designed to assist a person to pursue a career in the field of psychology. Although some aspects of the course may be of some assistance to you in your work, this is not considered sufficient to be able to conclude that the psychology course has the necessary connection with your employment as a teacher. As the psychology course expenses are not considered to have been incurred in the course of earning your assessable income as a teacher, you are not entitled to a deduction for these expenses.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns. | Relevant facts: You are employed as a teacher. | You have incurred expenses in undertaking a psychology course.