Private ruling: Self-education expenses
Published: October 2013
Ruling period: Year ended 30 June 2012 | Year ended 30 June 2013
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for your self-education expenses? | A1: Yes.

Relevant facts and circumstances: You worked as an employee You studied a course to upgrade your skills, to get a pay rise and to get promoted. After finishing your course you have been promoted at the same work place. You did not take out a loan or receive government assistance to pay your course fees.

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. The Commissioners view on the deductibility of self-education expenses is contained in Taxation Ruling TR 98/9. Paragraph 13 of TR 98/9 states: If a taxpayer's income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of self-education enables the taxpayer to maintain or improve that skill or knowledge, the self-education expenses are allowable as a deduction. In your case, it is accepted that the subjects you studied maintained or enhanced the skills that were required to perform your then current employment duties. Consequently, the self-education expenses incurred in undertaking the course have the necessary and relevant connection with the earning of your assessable income. The self-education expenses are therefore deductible under section 8-1 of the ITAA 1997.