Private ruling: Self Education Expenses
Date of advice: 18 January 2017
Published: June 2017
Ruling period: Year ended 30 June 2016
Date scheme commenced: 1 July 2015

Ruling: Q1: Are you entitled to a deduction for self education expenses? | A1: Yes.

Relevant facts and circumstances: You are working full time in your chosen field. You commenced study through a university. You are undertaking studies in a relevant science degree. Your job role consists of: collection of relevant samples, weighing and crushing of samples, milling and subdividing, Laboratory analysis, moisture analysis and reporting of results to necessary parties. You believe that by undertaking this course it will improve your knowledge and skills required in your current position as well as allow you to advance in your career.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1. | Income Tax Assessment Act 1936 Section 82A.

Reasons for decision: Summary: 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 ( Federal Commissioner of Taxation v. Finn (1961) 106 CLR 60, (1961) 12 ATD 348). 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 your degree would maintain or enhance the skills that are required in the performance of your current employment duties and your future employment. Consequently the self education expenses incurred 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. Note: The self-education expenses you can deduct may be subject to a reduction of up to $250 in accordance with section 82A of the Income Tax Assessment Act 1936. An explanation on how this provision operates is provided at paragraphs 119 to 155 of TR 98/9, which can be accessed on our internet website at www.ato.gov.au