Private ruling: Work related expenses - self education
Published: September 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for self defence classes? | A1: No

Relevant facts and circumstances: You work part-time in the security industry. You attend self defence classes to protect yourself and improve your skills. The classes you attend help improve your awareness and confidence. The self defence training you do is mainly used to restrain and defend. Other security industry employees recommended that you undertake the self defence training.

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 circumstances under which self-education expenses are allowable as a deduction. TR 98/9 states that self-education expenses are deductible under section 8-1 of the ITAA 1997 where they have a relevant connection to the taxpayer's current income-earning activities. If the 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, the self-education expenses are allowable as a deduction. However, paragraph 42 of TR 98/9 specifies that if a course of study is too general in terms of the taxpayer's current income-earning activities, the necessary connection between the self education expense and the income earning activity does not exist then the cost of the course is not allowable. In your case, although your work may require using a degree of force in certain circumstances, generally your duties would not require use of force or self defence. The self defence classes you attend are not considered to have a sufficient nexus to your current income earning activities and therefore the costs of the classes are considered private in nature and are not deductible under section 8-1 of the ITAA 1997.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.