Private ruling: Deduction for self-education expenses
Date of advice: 3 July 2023
Published: 28 August 2023
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can I claim self-education deductions related to undertaking a Master of Professional Accounting course? | A1: Yes. Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business states that self-education expenses are deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) where they have a relevant connection to the taxpayer's current income-earning activities. Self-education expenses are deductible where they maintain or increase the specific knowledge required in your current position and enable you to carry out your duties more effectively. Based on the information provided to the Commissioner your self-education expenses are deductible as it is accepted the study meets the requirements detailed in TR 98/9. In your situation, the course of study can be objectively seen as being undertaken to maintain or increase the specific knowledge required in your current position and to carry out your duties more effectively. Accordingly, you are entitled to a deduction under section 8-1 of the ITAA 1997 for expenses paid for the course of study as it is directly related to their current income earning activities, including where you obtain a loan for all or part of your fees under FEE-HELP. It should be noted that any subsequent repayments of a FEE-HELP debt are not deductible. (Refer to ATO Interpretative Decision ATO ID 2005/27 Income Tax Deductions: self education - payments made to reduce FEE-HELP debt ).

Relevant facts and circumstances: You are currently employed in an investigative role. You believe that undertaking a specific course at the masters level will improve your skills and knowledge in your current role and provide potential to improve future earning capacity. Your employer supports your intention to complete this course as it aligns with your current duties. Your immediate supervisor has supplied a letter confirming this and outlining why this is the case. The course will be self-funded, and fees added to your HELP loan.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 section 26-20