Private ruling: Self-education expense
Date of advice: 19 September 2016
Published: November 2016
Ruling period: Year ending 30 June 2017 | Year ending 30 June 2018
Date scheme commenced: 1 July 2016

Ruling: A1: Yes.

Relevant facts and circumstances: You are employed and a position description from your employer states your duties. You are enrolled in a course of education. The course overview guide lists course outcomes which align with the duties in your position description. You will maintain part-time employment with your current employer for the duration of the course. You will pay course fees in the 2016-17 and 2017-18 financial years.


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 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 ( FCT v. Finn (1961) 106 CLR 60, (1961) 12 ATD 348). However, paragraph 12 of TR 98/9 states that no deduction is allowable for self-education expenses if the study is to enable the taxpayer to get employment, obtain new employment or to open up a new income-earning activity (whether in business or the taxpayer's current employment). This includes studies relating to a particular profession, occupation or field or employment in which the taxpayer is not yet engaged. In this case, the position description for 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. It is considered that the study will maintain or improve your skill or knowledge used in your current income earning activity. Therefore you are entitled to a deduction for the course fees incurred.

Subject: Self-education expense: Can you claim a deduction for university fees to undertake a course of education?