Private ruling: Self-education expenses
Date of advice: 28 March 2019
Published: May 2019
Ruling period: year ending 30 June 2019 | year ending 30 June 2020 | year ending 30 June 2021
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you entitled to a deduction for self-education expenses? | A1: Yes. 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 your assessable income, except where the outgoings are of a capital, private or domestic nature. Taxation Ruling TR 98/9 states self-education expenses are allowable as a deduction if your current income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of the self-education enables you to maintain or improve that skill or knowledge. A deduction is also allowable if the education is likely to lead to an increase in income from your current income earning activities. Based on the facts you have provided, you are entitled to claim a deduction for the self-education expenses associated with studying the Post Graduate Diploma in Information Technology Management. However, you cannot claim expenses for which you were reimbursed. Further information about self-education expenses can be found by searching 'QC 31970' on ato.gov.au

Relevant facts and circumstances: You commenced full time employment as an IT Customer Service and Training Officer with your employer. You commenced part time study for a Post Graduate Diploma in Information Technology Management at a University. You expect to complete your studies in two years. You state these studies will assist in building and developing your current abilities and skill set to improve existing functions of your current employment. Your employer supports you in your study and allows flexible work arrangements on days you have study scheduled. Your employer will reimburse 50% of the tuition costs on units with a successful pass grade. You will incur costs for tuition, stationery and educational material and travel expenses from work to university. You don’t have a Higher education loan.

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