Private ruling: Work related expenses - self education
Date of advice: 16 August 2023
Published: 25 September 2023
Ruling period: Year ended 30 June 2023 | Year ending 30 June 2024 | Year ending 30 June 2025 | Year ending 30 June 2026
Date scheme commenced: 1 July 2022

Ruling: Q1: Are you entitled to a deduction for the self-education expenses incurred for a speciality professional course? | A1: Yes. Having considered your circumstances and the relevant factors, you are entitled to a deduction for your fees under section 8-1 of the Income Tax Assessment Act 1997 . Further information on the Commissioner's view can be found in Taxation Ruling 98/9 Income Tax: deductibility of self-education expenses incurred by an employee or person in business. Information generally on self-education expenses including how to calculate your claim can be found on our website ato.gov.au and entering quick code QC31970 into the search bar at the top right of the page.

Relevant facts and circumstances: You completed your overseas educational course a number of years ago. You completed the Australian exam a few years later which provided you with a certificate confirming your eligibility to practice your profession in Australia. You commenced work in the following year. During that tenure, you gained extensive experience in a number of areas. During the COVID-19 period you performed some managerial duties. During this time, you completed a professional development program. Having identified over a number of years, your interest in a specialist topic, you applied for acceptance into a professional course and was selected for specialisation. However due to COVID restrictions and personal circumstances, you were unable to take up the place offered. You were approached to fill the role of specialist professional as no other specialist was available in the area. You worked in the position for a number of months. You ceased your working in that position. You commenced working for another employer in the following month under the supervision of a specialised professional. This was also the point of commencement of your professional development course. As part of this course, the specialist professional is involved with formulating how you carry out your duties. This specialty course allows you to operate independently of specialist supervision and provides a pathway for future teaching and mentoring of students, as well as qualified professionals. In subsequent years you will increase your professional standing along with commensurate salary rises. This position is described as per the relevant Enterprise Agreement. Once the professional qualification is conferred, you will become eligible for specialist registration which will increase your role to higher gradings and associated salaries. The professional qualification is a full-time course, resulting in eligibility for specialist registration. You have undertaken this training to maintain and improve your skill and knowledge. Once the program is completed, it will enhance your professional standing within this field and objectively lead to higher income earning opportunities. You are a full fee paying student.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1