Private ruling: Deductions - self-education expenses
Date of advice: 15 July 2024
Published: 26 August 2024
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for the self-education expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs of undertaking a course with XXXX. | A1: Yes. Your self-education expenses are deductible under section 8-1 of the ITAA 1997. The expenses you'll incur to complete the course will allow you to improve the knowledge and skills required to carry out your current income-earning activities and are likely to lead to an increase in income from your current employment. The course has the relevant connection to your current income earning activities. To claim a deduction for a work-related expense, you must have spent the money yourself and weren't reimbursed. Further information about self-education expenses can be found in Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual.

Relevant facts and circumstances: On XXXX you commenced employment as a contractor at Company A in the role of XXXX. On XXXX you commenced permanent employment at Company A in the role of XXXX. On XXXX you commenced a course with XXXX. The one-year course was undertaken to improve skills in your XXXX role at Company A, by enhancing skills and knowledge. You are required to complete four units of study. The total course fee is $XX. You made the first payment of $XX on XXXX. You intend to complete the course by XXXX. You are not paying for the course fees using the Higher Education Loan Program (HELP). You are not receiving any government allowance to study (including Abstudy, Austudy or Youth Allowance). You are not receiving a taxable bonded scholarship.

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