Private ruling: Work related expenses - self education
Published: November 2011
Ruling period: Year ending 30 June 2011 | Year ending 30 June 2012
Date scheme commenced: 1 July 2010

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

Relevant facts and circumstances: You are employed as a full time teacher. You currently work as a teacher for 6 hours a week. You are studying for a Graduate Diploma, which is a full time course. Your course of study will give you specialist knowledge. The course will increase your skills in literacy practices. Your employer encouraged you to do the course so you can obtain specialist knowledge and apply that knowledge in the school. After you complete the course you expect to have the necessary skills to take on the role of specialised co-ordinator, a role which would be in addition to your classroom teaching position.

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. Taxation Ruling TR 98/9 discusses the circumstances under which self education expenses are allowable as a deduction. TR 98/9 provides that 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. 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, we accept that the Graduate Diploma you are studying for will improve the skills you need in the performance of your job as a teacher. We also accept that the diploma will provide you with specialist skills and is likely to lead to an increase in income from your current income earning activity. The expenses you incur for self education are therefore deductible 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.