Private ruling: Self-education expenses
Date of advice: 26 October 2023
Published: 4 December 2023
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for the course fees relating to the educational course? | A1: Yes. Based on the information provided to the Commissioner your course fees have the relevant connection with your employment as per the Commissioner's view in Taxation Ruling 2023/D1 Income tax: deductibility of self-education expenses incurred by an individual . The course fees are an allowable deduction under Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997). | Q2: Are you entitled to a deduction for the travel and accommodation expenses associated with the course? | A2: No. Based on the information provided to the Commissioner the travel and accommodation expenses are not an allowable deduction as they are private and domestic in nature. Due to the length of time you are studying in Country Z, the expenses are similar to the example 32 in TR 2023/D1 at paragraph 135: 135. John decides to undertake a 2-year course of study at a university in a city 250 kilometres from the town where he lives. He takes unpaid leave from his job and his employer has agreed to promote him to a higher paid position once he has completed the course and returned to work. John shares a rented house with some other students during this 2-year period and takes a casual job. He occasionally returns to his former town on weekends to visit family and friends. 136. John can claim the costs of the self-education but cannot claim a deduction for the accommodation and meal expenses he incurs. The length of time that John resides in the city, the long-term nature of his accommodation and the fact that he has employment in the city indicate his accommodation and meal expenses are private and domestic living expenses. The length of your stay in Country Z means that the travel and accommodation are private in nature and therefore not deductible under Section 8-1 of the ITAA 1997.

Relevant facts and circumstances: You are a resident of Australia for taxation purposes. You currently work for Employer Z in Australia. You are currently on leave without pay from Employer Z. A number of months ago you commenced a course in Country Z. Your employer is supportive of you undertaking the course and it is in line with your current employment. The course also forms part of your annual professional development. Your leave without pay agreement ends in a future year. You will return to the same position with Employer Z when you complete the course. You and Employer Z have not discussed an extension to the leave without pay agreement. You paid the course fees upfront. You incurred travel expenses for a flight to Country Z, transport to the airport in Australia, and from the airport in Country Z to your accommodation. You incurred accommodation expenses for student accommodation and is prorated for the time you are not studying. You cannot do the course online; it has to be face to face. You will stay in Country Z for the duration of the course. None of your family have gone to Country Z with you. You paid your rent on your rental property until the end of the relevant year. You are not able to work in Country Z due to your visa conditions. Your employer has not reimbursed you for any of the expenses associated with the course.

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