Private ruling: Self education expenses
Published: August 2011
Ruling period: Year ended 30 June 2010 | Year ended 30 June 2011 | Year ending 30 June 2012
Date scheme commenced: 1 July 2009

Ruling: Q1: Are you entitled to a deduction for your course fees incurred to study at a university? | A1: Yes

Relevant facts and circumstances: After you commenced your current employment, you began studying at a university. You have chosen to focus your studies on subjects that are relevant to your current income-earning activity. You have paid course fees.

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 circumstances in which self education expenses are allowable as a deduction including where a taxpayer's current 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. 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 you are studying at a university. It is accepted that this course will maintain and enhance the skills that are required in the performance of your current income-earning activities. Consequently, as there is the necessary connection between the course and your current income-earning activities you are entitled to claim a deduction for your self-education expenses under section 8-1 of the ITAA 1997.

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