Private ruling: self education expenses
Published: January 2012
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

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

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You completed an accounting degree at an Australian University. After completing the course you were employed full time in a company performing general accounting duties. In order to enhance your knowledge in Australian accounting practices and terminology you enrolled in an accounting related course. You were encouraged by your superior to undertake the course. The course is recognised by the Institute of Chartered Accountants and the Institute of Certified Practising Accountants.

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 98/9 discusses the deductibility of self-education expenses and provides that where your 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 an allowable deduction under 8-1 of the ITAA 1997. In your case from the information that you have supplied, it is accepted that the course that you have enrolled in maintains and enhances the skills and knowledge that are required to perform your duties in your current employment. Accordingly, you are entitled to a deduction for costs associated with completing the course under section 8-1 of the ITAA 1997.

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.