Private ruling: Self-education expenses
Published: June 2015
Ruling period: Year ending 30 June 2016
Date scheme commenced: 1 July 2015

Ruling: Q1: Are the meal and travel expenses of a course from an overseas university deductible self-education expenses for income tax purposes? | A1: Yes.

Relevant facts and circumstances: You will undertake a course offered by an overseas university. You will incur meal and travel expenses when you attend residential blocks overseas and other educational expenses whilst completing the course. You will continue to work whilst undertaking the course. The course relates to your current employment and will result in an increase in income once completed.

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 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 Income tax: deductibility of self-education expenses incurred by an employee or a person in business, 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). Self-education expenses include fares incurred to attend an overseas educational institution. Accommodation and meal expenses are allowable where you are required to be away from home overnight but not where you establish a new home base at that location. In your case, it is accepted that the degree will maintain or enhance the skills that are required in the performance of your current employment duties. Consequently the self-education expenses incurred have the necessary and relevant connection with the earning of your assessable income and are therefore deductible.