Private ruling: Self education expenses
Published: January 2014
Ruling period: Year ended 30 June 2012 | Year ended 30 June 2013 | Year ended 30 June 2014 | Year ended 30 June 2015
Date scheme commenced: 1 July 2011

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 (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 degree 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.

Relevant facts: You are employed and are undertaking a course which will improve the specific knowledge used in your current employment.