Private ruling: Self education expenses
Published: February 2013
Ruling period: Year ending 30 June 2013 | Year ending 30 June 2014
Date scheme commenced: 1 July 2012

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 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. 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, it is accepted that the course will maintain or enhance the skills that are required in the performance of your current role. Consequently, the self-education expenses that you will incur have the necessary and relevant connection with the earning of your assessable income. You are therefore entitled to a deduction under section 8-1 of the ITAA 1997 for self education expenses.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You are employed in a particular field. | Minimum pre-employment requirements for your role include the completion of course theory subjects. | The course consists of both practical and theoretical training | The course covers a number of subjects. | These theoretical components are reinforced through practical experience. | You are interested in completing the program now as it will be very beneficial for improving your skills and knowledge in your current role. | The attainment of this course is seen as an advantage in your current role. | This course is listed as a prerequisite for promotion into a leadership position. | You have been verbally advised by management that completing this course will assist in developing your skills and knowledge in your current role. | You will not be conducting training during work hours or taking leaving due to staff shortages. | Your shift pattern gives you adequate time to complete the training in your own time. | You are not looking to complete the course as a precursor to gaining employment.