Private ruling: Self education expenses
Ruling period: Year ended 30 June 2008. | Year ended 30 June 2009.
Date scheme commenced: 1 July 2007.

Ruling: Questions and answers: | Are you entitled to a deduction for self-education expenses prior to your employment as a personal care assistant? | No. | Are you entitled to a deduction for self-education expenses incurred whilst working as a personal care assistant? | 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 discusses the deductibility of self-education expenses. If a taxpayer's income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of self-education enables the taxpayer to maintain or improve that skill or knowledge in that current employment, the self-education expenses are allowable as a deduction. During the particular income year you were not employed while studying and therefore are not entitled to self-education deductions or a general deduction under section 8-1 of the ITAA 1997 for the expenses incurred in this year, namely course fees, first aid training, police clearance and Department of Immigration ID fees. During the subsequent income year you were employed whilst studying. You were employed as a personal care assistant whilst studying in a Registered Nurse Bridging course. You need to establish that the subjects you studied maintained or improved skill or knowledge in your current employment at the time as a personal care assistant. The self-education expenses incurred in undertaking the Registered Nurse Bridging course do not have the necessary and relevant connection with the earning of your assessable income as they are incurred whilst in the pursuit of employment beyond that of a personal care assistant, that is you intend to be employed as a nurse. Thus the self-education expenses are not deductible under section 8-1 of the ITAA 1997. You are not entitled to a deduction for accommodation and meals whilst you were away from home on your unpaid placement under the general deduction provisions of section 8-1 of the ITAA 1997, as the expenses were not incurred in the process of producing assessable income. Travel between the placement and university, and light and power, are not deductable as they are considered private in nature.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns. | Relevant facts: You have a Nursing degree from an overseas University. | You worked as a nurse in hospitals overseas. | You did not earn any assessable income during the particular financial year. | You paid study fees for an Australian university whilst overseas. | You commenced study upon arrival. | You completed a Registered Nurse Bridging course by a particular year. | The bridging course's subjects included: | · Registered nurse: Acute Care. | · Registered nurse: Professional Practice. | · Health Professional: Culture, Language and Communication. | · Registered Nurse: Professional issues in Australia. | The subjects helped you to identify the personal needs of the patients, including: | · To identify an emergency and to report to seniors. | · To document, report and record incidents. | · To handle emergency situations with confidence. | · To identify the occupational hazards and how to manage the situation. | · To work according to professional practise. | · To establish the culture and work according to the culture and language. | · Problem solving skills. | · To provide comprehensive care to the patient. | · To meet the nutritional needs of the patient. | · To identify the health problems of the individual. | · To handle elderly persons. | · To know the professional ethics and work accordingly. | · Occupational health and manual handling. | As part of the bridging course you had an unpaid placement at a Hospital in Australia. | You incurred the expenses in the particular year which all relate to your university course/placement at the Hospital: | You commenced employment as a personal care assistant in the subsequent financial year. | Your group certificate shows that you worked as personal care assistant part time for Nursing in Australia. | · Providing comprehensive personal care such as showering, bathing, grooming to patients. | · Assisting with feeding. | · Encouragement of mobility. | · Provide psychological support. | · Changing position of the patient. | · Providing close observations of the elderly suffering from dementia. | · Report emergency situations to the supervisor. | · Documentation of incidents. | · Report occupational hazards to the senior/team leader. | You commenced employment as a registered nurse at a Hospital in the subsequent year. | You incurred the following expenses in the subsequent year including placement accommodation and meals, travel fares to placement and university, and utilities.