Private ruling: Self-education expenses
Date of advice: 1 November 2016
Published: February 2017
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for self-education expenses incurred as a result of your employment? | A1: Yes.

Relevant facts and circumstances: You are employed. You undertake studies. The course you have undertaken will further develop your skills and knowledge in your current employment. In addition, the subjects you will undertake in the course will expand your knowledge in areas relevant to your employment position. In order for you to provide advice you are required to keep your qualifications up to date. You have incurred expenses.

Relevant legislative provisions: Income Tax Assessment 1997 Section 8-1

Reasons for decision: Detailed Reasoning - Detailed reasoning: 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 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). Further, paragraph 26 of TR 98/9 states that expenses relating to self-education which are compulsory and unavoidable, as well as those for which a need can be shown in terms of fulfilling the requirements of the course, are regarded as being 'necessarily incurred' and are expenses of self-education. It is considered that the course undertaken will maintain or improve your skill or knowledge used in your current income earning activity. Consequently you are entitled to a deduction for the tuition fees incurred.