Private ruling: Self-education expenses
Date of advice: 4 October 2023
Published: 13 November 2023
Ruling period: Financial year ended 30 June 2023 | Financial year ending 30 June 2024 | Financial year ending 30 June 2025
Date scheme commenced: 12 September 2022

Ruling: Q1: Are you entitled to a deduction for the self-education expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs of undertaking a university course? | A1: Yes. Your self-education expenses are deductible under section 8-1 of the ITAA 1997. The expenses you'll incur to complete the university course will allow you to improve the knowledge and skills required to carry out your current income-earning activities and are likely to lead to an increase in income from your current employment. To claim a deduction for a work-related expense, you must have spent the money yourself and weren't reimbursed. Further information about self-education expenses can be found in Taxation Ruling TR 2023/D1 Income tax: deductibility of self-education expenses incurred by an individual.

Relevant facts and circumstances: You are currently employed within a particular industry. You commenced this role in XX. You secured the position based on your previous professional experience. In 20XX you commenced a university degree course to assist you to perform your role better. This course is comprised of 16 units. You are currently studying two subjects per trimester and intend to complete the course by mid-2025. To date, you have completed six compulsory subjects. Since beginning the course, you have utilised new learnings, knowledge and skills in your work. The total cost of the course is $XX. You have paid all course fees upfront and have been gifted $XX by your parents to cover part of the cost. You would like to claim a deduction for the remaining $XX that you have paid. Your employer supports your aim to complete the course and they provide you with study leave entitlements.

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