Private ruling: Deduction - self-education
Date of advice: 19 June 2023
Published: 7 August 2023
Ruling period: Financial year ending 30 June 2022
Date scheme commenced: 1 July 2021

Ruling: Q1: Are you entitled to a partial deduction for the self-education expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs of participating in a professional development tour? | A1: Yes. Your self-education expenses are partially deductible under section 8-1 of the ITAA 1997 to the extend the expenses are not private in nature. The expenses you incurred to complete the professional development tour will allow you to improve the knowledge and skills required to carry out your current income-earning activities and it also satisfies the professional development accreditation requirements for your role. You will need to maintain records, including a diary or logbook, to enable you to calculate the appropriate apportionment (work-related versus private components) for the deduction. Further information about self-education expenses can be found in TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or person in business.

Relevant facts and circumstances: You are currently employed in the education industry with XX. On XXXX, you went on a professional development tour. Your employer allowed you to use accrued long service leave so you could attend the professional development tour. Your employer was unable to pay for the tour costs so you incurred all expenses yourself. You have incorporated your learnings into your current income-earning activities. In your role you are required to meet different levels of professional learning accreditations. The accreditation guidelines makes it clear that professional learning for the purpose of obtaining and maintaining accreditation involves a range of activities. Assumption The ruling is valid to the extent that the tour will be recognised an approved Continuing Professional Development (CPD) course and that it satisfies accreditation guidelines (required for your role).

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