Private ruling: Self-education expenses
Date of advice: 27 October 2017
Published: March 2018
Ruling period: Year ending 30 June 2017 | Year ending 30 June 2018
Date scheme commenced: 1 July 2016

Ruling: Question and answer | Are you entitled to a deduction for the self-education expenses you incur for a post-graduate certificate program on X with a University? | 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 deductibility of self-education expenses. 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 post-graduate certificate program on X with X that you undertake will enhance the skills that you possess in your current employment duties which require you to discuss research topics and identifying research questions, teach how to clean and modify their data, identify appropriate statistical analysis and teach how to perform it; and teach how to interpret the results. The expenses you will incur have the necessary and relevant connection with the earning of your assessable income and are deductible as self-education expenses under section 8-1 of the ITAA 1997. It is considered that the study will improve the knowledge and skills that are required to perform your current employment duties. | Detailed Reasoning - Expenses you can claim: As there is sufficient connection between your course and employment, the following self-education expenses are allowable tax deductions: ● tuition fees. ● text book ● textbooks and a scientific calculator ● a software license The expenses that apply to the 2017-2018 financial year are allowable deductions provided that you remain employed as a X until the end of your contract. | Detailed Reasoning - Note: The self-education expenses you can deduct may be subject to a reduction of up to $250 in accordance with section 82A of the Income Tax Assessment Act 1936. An explanation of how this provision operates is provided at paragraphs 119 to 155 of TR 98/9, which can be accessed on the ATO website at www.ato.gov.au

The advice in the Register has been edited and may not contain all the factual details relevant to each decision. Do not use the Register to predict ATO policy or decisions. | Relevant facts: You commenced casual employment (up to X hours per week) as a X with a University. | Your duties as a X require you to consult PhD and Masters research students at the University and this involves: | ● Discussing research topics and identifying research questions; | ● teaching how to clean and modify their data; | ● identifying appropriate statistical analysis and teach how to perform it; and | ● teaching how to interpret the results. | You attend the program on a part-time basis for one year and are required to complete 4 subjects. | You study in your own time and do not receive an allowance or reimbursement of expenses. | You have paid all costs relating to the course yourself. | The expenses you have incurred include: