Private ruling: Self-education
Published: August 2014
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a deduction for course fees, certification fees, flights, rental car and accommodation costs? | A1: 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 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 Income tax: deductibility of self-education expenses incurred by an employee or a person in business discusses the circumstances under which self-education expenses are allowable as a deduction. A deduction is allowable for self-education expenses if a taxpayer's current income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of the self-education enables the taxpayer to maintain or improve that skill or knowledge ( Federal Commissioner of Taxation v. Finn (1961) 106 CLR 60, (1961) 12 ATD 348). The following types of expenses related to self-education are allowable: • course or tuition fees; • airfares incurred for attending an educational institution. • where you are away from home overnight, accommodation and meals expenses incurred on attending an educational institution; and • Motor vehicle expenses between a taxpayer's home and an educational institution and return. In your case you incurred the course fees after you had a verbal contract of employment and whilst you had not received income from the employment prior to paying the course fees it is accepted that you were employed at the time you incurred the expenses. It is accepted that the course will maintain or improve your skills or knowledge in carrying out your employment duties. Therefore, you are entitled to a deduction for course fees, certification fee, flights, rental car and accommodation costs.

Relevant facts: You are an overseas qualified trainer. | You received accreditation to instruct in Australia in 20XX. | You sent a proposal for classes to the club which they accepted. The club sent you an email which offered to either employ you or rent space to you to undertake the classes. You chose to be employed and entered into a verbal employment contract in 20XX. | In early 20XX the club advertised your classes. | You paid for a training course in 20XX. The course was undertaken later in 20XX. | The course was not a requirement of your job but it would make it safer for your students. | You received your first pay in mid 20XX. | Your employer supported you undertaking the courses. However, they did not provide you with any funding. | The certification fees were for a mentor to grade the final parts of the course.