Private ruling: Self-education expenses
Date of advice: 13 July 2018
Published: September 2018
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Is the cost of your course of study considered an allowable self-education expense? | A1: Yes 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. Most self-education expenses are incurred voluntarily and to be allowable under section 8-1of the ITAA 1997, the expenditure must be characterised as having been incurred in gaining or producing assessable income (Fletcher & Ors v. Federal Commissioner of Taxation T 91 ATC 4950 at 4957). Ronpibon Tin N. L v. Federal Commissioner of Taxation (1949) 78 CLR 47 Dixon J at p56 indicated that the character of the expenditure is relevant and incidental to the gaining or producing of assessable income. Based on the information you have provided the course of study has the relevant nexus to your current position and therefore is an allowable deduction under Section 8-1 of the ITAA 1997.

Relevant facts and circumstances: In 20XX you completed Professional Training and were admitted to a professional organisation in 20XX and member of a second professional organisation with a relevant certificate You have worked at Employer A since 20XX In 20XX you enrolled in a course of study You paid 75% of the course costs with the other 25% paid by your employer You hold a position with Employer A, being responsible for research and producing course content for your lectures and tutorials as well as delivering classes The requirements of your position include undertaking formal research in your area of expertise The current course is being undertaken to enhance you skills and knowledge Completing the course is likely to lead to an increase in your income as a lecturer with Employer A You are required by your employer to undertake the course of study in order to perform the duties of your current position

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