Private ruling: Deductions - Self-Education Expenses
Date of advice: 18 March 2026
Published: 11 May 2026
Ruling period: DD MM YY
Date scheme commenced: DD MM YY

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 course at an overseas university? | A1: Yes. Your self-education expenses are deductible under section 8-1 of the ITAA 1997. The expenses you incur to complete the Master of Law 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 employment. The course has the relevant connection to your income earning activities, and did not enable you to get employment, to obtain new employment or to open up a new income-earning activity. To claim a deduction for these self-education expenses, you must have spent the money yourself and weren't reimbursed. Further information about self-education expenses can be found in Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual . An expense is incurred when an amount is actually paid or when a definitive obligation to pay the amount arises. Fees for courses that have a census date are incurred on that date unless they have been paid prior to the census date. This ruling is binding on the basis that you remain employed with Employer 1 after immediately completing the course. Should your employer change, you will need to consider applying for a new private ruling. | Q2: Are you entitled to claim a deduction under section 8-1 of the Income Tax Assessment Act 1997 for your airfares from XXXX to XXX to attend your course at the University? | A2: Yes. Your airfare expenses from XXX to XXXX to attend your course at the university are deductible under section 8-1 of the ITAA 1997. Paragraph 125 Taxation Ruling TR 2024/3 states: Airfares incurred to participate in self-education, provided you are not living at the location of the self-education activity, are deductible. Airfares are part of the cost of undertaking the self-education activities. Note: You cannot claim a deduction for the airfares incurred when you returned home on DD MM YYfor the Christmas break, or for the flights taken on DD MM YYwhen you travelled back to XXXX with your family. These flights are private in nature and are not deductible. | Q3: Are you entitled to claim a deduction under section 8-1 of the Income Tax Assessment Act 1997 for your accommodation expenses incurred while attending your course at the university? | A3: No.

Relevant facts and circumstances: Between DD MM YY and DD MM YY, you were employed with Employer 1. From DD MM YY to DD MM YY, you were employed with Employer 2 On DD MM YY, you recommenced employment with Employer 1 in a professional role. You also undertake casual sessional academic work with Employer 3. You have been employed with Employer 3 continuously since DD MM YY. Your position description for your current role states that you are responsible for providing professional advice and services on a range of routine and moderately complex matters across several functional areas. In DD MM YY, you applied to an overseas university to undertake a course. Your application was successful, and you received a conditional offer on DD MM YY. You accepted the offer and uploaded the required registration documents on DD MM YY. The course is a XX-month master's degree commencing in DD MM YY and concluding in DD MM YY, undertaken on a full-time basis. Students complete four courses selected from the available offerings, and upon completion are expected to have enhanced subject knowledge, analytical capability, and the ability to evaluate doctrinal, theoretical and policy issues. On DD MM YY, you ceased work with Employer 1 and commenced a leave of absence while studying abroad. You will remain employed by Employer 1 but you won't be paid while you study. On DD MM YY, you travelled from XXXX to XXXX. On DD MM YY, you commenced your course at XXXX. While undertaking the course, you reside in student accommodation provided by the university. You elected to reside in a larger accommodation unit to allow family members to stay with you. If you not done this, you would have had a room with a single bed and shared kitchen and bathroom facilities, which would have meant family visits would have been impossible to facilitate. You initially travelled overseas alone for approximately XX weeks. On DD MM YY, you returned to XXXX for a temporary break. On DD MM YY, you returned overseas accompanied by your family. Your family will remain with you until approximately DD MM YY, when a period of approved leave ends. You undertook the course to improve your skills and capability in your current role with Employer 1 and Employer 2. You state that the course relates directly to your employment and supports your ongoing professional development, with Employer 1 and with Employer 2. The course has enhanced your critical thinking, research, writing and communication skills, as well as your subject-matter knowledge. Your employer supported your undertaking of the course. On DD MM YY, your employer provided a letter of support confirming that the course is relevant to your role, that the skills acquired would enhance your effectiveness in your employment, and that postgraduate qualifications are relevant to career progression. The letter also confirmed that you would take a leave of absence from DD MM YY to DD MM YY and return as a permanent employee thereafter. You will apply for a promotion while studying abroad. You have been advised that, upon successful completion of the course, you are likely to be promoted and return to work in DD MM YY in a more senior role. This advice was provided by your line manager. The total cost of the course is approximately $XX. Your return international airfares cost approximately $XX. Your accommodation costs total approximately $XX. You received a scholarship amounting to approximately $XX. You paid the remaining balance of approximately $XX personally. Your estimated course completion date is DD MM YY. Your graduation ceremony will be held on DD MM YY. Following graduation, you will return home. On DD MM YY, you will recommence employment with Employer 1.

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 2024/3 Income tax: deductibility of self-education expenses incurred by an individual outlines deductibility of self-education expenses incurred by an individual Paragraphs 129 to 132 of TR 98/6 state: 129. If you are not away from home overnight for self-education connected with your income-earning activities, a deduction is not allowable for any living expenses you incur, such as meals or accommodation. This expenditure is a private or domestic living expense because it is incurred by you to maintain your usual residence or to consume food and drink as you go about your daily activities. 130. Similarly, accommodation and meal expenses you incur in connection with self-education will be private and domestic living expenses where you are living at the location of the self-education activity. This will apply regardless of whether the self-education allows you to acquire and improve the skills and knowledge you require to carry out your income-earning activities or leads to, or is likely to lead to, an increase in income from your income-earning activities. 131. The following factors indicate when your accommodation and meal expenses are private and domestic living expenses, and are not deductible: • The length of the overall period you will be away from your usual residence is a relatively long one. • The nature of the accommodation is such that it becomes your usual residence. • You are, or can be, accompanied by family or friends or visited by family or friends. 132. No single factor is decisive and the weight given to each of these factors will vary depending on your individual circumstances. In your case, the length of time you will be living overseas is approximately XX months. This constitutes a relatively long period away from your usual residence and weighs strongly in favour of the expenses being private and domestic in nature. While undertaking the course, you are residing in a two-bedroom family unit at XX student accommodation. Although smaller, single-occupancy rooms were available, you chose a larger unit specifically so that your family could stay with you during your period of study. The nature of this accommodation is consistent with establishing a temporary home rather than accommodation used solely to enable you to undertake the course. When considering: • the length of time you will be away from your usual residence, • the nature and size of the accommodation selected, and • the fact that you chose accommodation suitable for your family to live with you, we consider that your accommodation expenses take on the character of private and domestic living expenses. Accordingly, no deduction is allowable for these accommodation expenses.