Private ruling: Self-education
Published: October 2014
Ruling period: Year ended 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you entitled to 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 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 Income tax: deductibility of self-education expenses incurred by an employee or a person in business 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). In your case, it is accepted that the degree will maintain or enhance the skills that are required in the performance of your current employment duties. Furthermore, it is considered that the cost of an admissions test; travel to take the test; university application fees and for a notary to certify documents are part of the overall cost of the course. Consequently theses costs have the necessary and relevant connection with the earning of your assessable income and are therefore deductible.

Relevant facts: You are employed as an analyst. | You are undertaking a Masters degree overseas. | You will incur costs of an admissions test, travel to take the test, university application fees and for a notary to certify documents.