Private ruling: Self-education expense
Date of advice: 7 February 2018
Published: June 2018
Ruling period: Year ended 30 June 2018 | Year ended 30 June 2017 | Year ended 30 June 2016
Date scheme commenced: 1 July 2015

Ruling: Question and answer | Are you entitled to a deduction for accommodation expenses incurred while living away from home to undergo training? | No.


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 TR 98/9 (TR 98/9) provides the Commissioner’s view for the circumstances under which self-education expenses are allowable as a deduction. TR 98/9 states that where a taxpayer is away from home overnight in connection with a self-education activity, accommodation and meal expenses which are incurred are in fact deductible under section 8-1 of the ITAA 1997. However if the taxpayer establishes a new home then the accommodation and meal expenses are considered to be private and would not be deductible. The key factors in determining whether a new home has been established are: ● The total duration of the travel; ● Whether the taxpayer stays in one place or moves frequently; ● Nature of the accommodation (eg hotel, long term accommodation); ● Whether the taxpayer is accompanied by his or her family; ● Whether the taxpayer is maintaining a home at the previous location whilst away; ● Frequency and duration of return trips to the previous location. In your case, your training provider required you to live and work away from home and placed you in another state for more than 12 months. You lived in rental accommodation that was close to your workplace for this period while you maintained a home in another state. Based on these facts it is considered that you established long term accommodation for the period of time that you were in #. Accordingly, you are not entitled to a deduction for your accommodation expenses as these are considered to be private in nature.

Relevant facts: You have been working as a # under short term contracts. | You decided that you want to become a #. | Becoming a # requires specialisation which involves further training and exams to obtain fellowship with the appropriate college. | In # you were accepted into training working towards fellowship with the appropriate college. | Your training provider required you to live and work away from home and placed you in another state for over 12 months. | You paid rent so that you could live near your training placement. | Your rent was subsidised but not fully covered for the first six months, then there was a change in training provider and rent was no longer subsidised. | You have a main residence in another state which was not rented out while you were away and you visited your home regularly on weekends to use and maintain it. | The work experience part of your training was made up of short term month contracts working as a #. Each job was a training position. | Your training included courses, online work, assessments, exams and practical experience.