Private ruling: Self Education - overseas university
Date of advice: 16 December 2016
Published: May 2017
Ruling period: Year ending 30 June 201X
Date scheme commenced: 01 July 201X

Ruling: Q1: Can you claim a deduction for university tuition fees paid in connection with a self-education course at an overseas university? | A1: Yes | Q2: Can you claim a deduction for air fares in connection with a self-education course at an overseas university? | A2: Yes

Relevant facts and circumstances: You are employed as a Educational Professional Your role includes the delivery of lectures and tutorials in a range of subjects as well as the pursuit of scholarly research. You have enrolled in an overseas course. The course commenced and you will complete this degree. Your employer encouraged you to pursue your studies and permitted you to arrange your educational duties to enable you to receive your salary whilst you are overseas studying. Your employer has granted leave without pay to complete your studies. The degree will develop skills and knowledge which directly relate to your Educational Profession and research. After the course you will recommence your full time employment. You have not received any scholarship or bursary to support you in undertaking this course. You paid the course fees and airfares.

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. 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). In this case, as discussed above, the normal work-related self-education rules will apply. We accept that the position description for your current role and the course outcomes align significantly. The course maintains and improves skills and specific knowledge that you exercise in your current income earning capacity as an Educational Professional. It is considered that the study will maintain or improve your skill or knowledge used in your current income earning activity. Consequently you are entitled to a deduction for the course fees incurred and the costs of flights to attend this course.