Private ruling: Self-education expenses
Date of advice: 8 January 2021
Published: March 2021
Ruling period: Year ended 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Are you entitled to a deduction for self-education? | A1: Yes. 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. If your current income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of self-education enables you to maintain or improve that skill or knowledge, the self-education expenses are allowable as a deduction. In your case, it is accepted that the course you are undertaking will maintain or enhance the skills that are required in the performance of your current employment duties. Consequently, the self-education expenses incurred in undertaking the course 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.

Relevant facts and circumstances: You started your role in late 20XX. You began a course of study the next year. You enrolled in a number of subjects: You subsequently started acting in a higher level role and formally took the position later in the year. Your role includes staff development, data and business analytics, customer service and satisfaction, responsibility for compliance with laws and regulatory requirements and managing operational costs.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1