Private ruling: Self education expenses
Date of advice: 26 April 2018
Published: July 2018
Ruling period: Year ending 30 June 20xx
Date scheme commenced: 01 July 20xx

Ruling: Q1: Are you entitled to a deduction for the fees incurred whilst completing an specific Masters degree under s8-1 Income Tax Assessment Act 1997 (ITAA 97)? | A1: Yes Section 8-1 of the 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. It is considered that the Master’s degree sufficiently relates to and improves upon the skills you use in your current income producing activities.

Relevant facts and circumstances: You are currently employed as a Manager. You commenced employment in 20xx. You commenced your degree at a tertiary institution in 20xx with payment being paid directly by you. You have a letter of support from your employer stating that they are of the view that the degree: ● Is directly relevant to your role ● Will support you in better performing the requirements of your current role ● Will support you in further progressing within the company. On completion of the degree you intend to continue to work for your employer. The degree subjects have been identified to directly relate to your current job role.

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