Private ruling: Self-education
Published: July 2014
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for self-education? | A1: No.


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, sets out the circumstances in which self-education expenses are allowable as a deduction. Generally speaking self-education expenses are deductible where they have a relevant connection with the taxpayer's current income earning activities. A deduction is not allowable for self-education expenses if the study is designed to enable a taxpayer to get employment, to obtain new employment, or to open up a new income-earning activity. The expenses come at a point in time too soon to be regarded as being incurred in gaining or producing assessable income. In your case, you were not currently employed. Therefore, you are not entitled to a deduction for self-education expenses as the relevant connection to producing current assessable income was not present.

Relevant facts: You have worked overseas for several years. | You have returned to Australia and have been unsuccessful in obtaining work because you do not have local experience and training certificates. | You enrolled in a number of training courses hoping that they would assist you to be successful in obtaining a job.