Private ruling: Deduction-self-education expenses
Published: September 2012
Ruling period: Year ending 30 June 2013 | Year ending 30 June 2014
Date scheme commenced: 1 July 2012

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


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 98/9 discusses the circumstances in which self education expenses are allowable as a deduction including where a taxpayer's current 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. Similarly, if the study of a subject of self-education objectively leads to, or is likely to lead to an increase in a taxpayer's income from his or her current income earning activities in the future, a deduction is allowable. In your case you are studying a self-education course. It is accepted that this course will maintain and enhance the skills that are required in the performance of your current employment activities with your employer. Consequently, as there is the necessary connection between the course and your current income-earning activities you are entitled to claim a deduction for your self-education expenses under section 8-1 of the ITAA 1997.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You are employed full-time. | You hold degrees and certificates. | You undertake a number of duties for your employer. | You are intending to undertake a self-education course at an education facility. | The course is designed to further enhance the knowledge and expertise of those who have previously completed studies in your chosen profession. | You are intending to start the course in one year and finish it in another year. | You are required complete a number of subjects to gain qualification. | Your reasons for undertaking the course are to update your knowledge and skills in the area of employment and keep abreast with new information in your profession. | You will not change your position with your current employer after you complete the course. | You will not receive an increase in your income as a result of completing the course. | You will not receive any allowances or be reimbursed for any expenses in relation to the course. | You intend to pay for your self-education expenses. | You will study in your own time. | You will take annual leave to do exams and other study when required.