Taxation Ruling

TR 1998/9A1 - Addendum

Income tax: deductibility of self-education expenses


This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Taxation Ruling TR 98/9 to adjust the title and remove paragraphs addressing the treatment of Commonwealth education assistance schemes in light of the High Court decision in Commissioner of Taxation v Anstis (2010) 241 CLR 443; (2010) 76 ATR 735; 2010 ATC 20-221.

TR 98/9 is amended as follows:

1. Title

After 'self-education expenses', insert: ' incurred by an employee or a person in business'

2. Paragraph 3

Omit paragraph; substitute:

3. This Ruling does not address:

the deductibility of self-education expenses incurred by the recipient of an assessable allowance where entitlement to the allowance is conditional on the recipient undertaking a course of education, as in Commissioner of Taxation v Anstis (2010) 241 CLR 443; (2010) 76 ATR 735; 2010 ATC 20-221;
the deductibility of expenses associated with travel between a taxpayer's home, an educational institution and a place of work. Taxation Ruling TR 92/8 (paragraph 11(d), paragraph 13(c), paragraph 43 and paragraph 44) addresses the relevant principles in terms of the deductibility of motor vehicle expenses. These paragraphs have been reproduced in the Note at the end of this Ruling (see paragraph 160 of this Ruling);
the substantiation requirements in Division 28 and Division 900 of the ITAA 1997.

3. Paragraphs 4, 8, 11, 18-21, 71-77, 156-159

Omit paragraphs (including headings)

4. Paragraph 7

Omit: 'Subject to paragraphs 8 and 9 below'; substitute: 'Subject to paragraph 9 below'.

5. Paragraph 15

Omit the first sentence; substitute:

'The fact that the study will enable a taxpayer to get employment, to obtain new employment or to open up a new income-earning activity (whether in business or in the taxpayer's current employment) is not a sufficient basis in itself for self-education expenses to be deductible.'

6. Detailed contents list


Commonwealth educational assistance schemes 18
Commonwealth educational assistance schemes 71
AUSTUDY scheme 71
ABSTUDY, AIC and VCES schemes 75
Other educational assistance payments 77
Alternative views 156
AUSTUDY scheme 156

7. Legislative references


Student and Youth Assistance Act 1973

8. Case references

(a) Insert:

FC of T v. Anstis (2010) 241 CLR 443; (2010) 76 ATR 735; 2010 ATC 20-221

(b) Omit:

FC of T v. Klan 85 ATC 4060; (1985) 16 ATR 176
Case N94 81 ATC 504; 25 CTBR (NS) Case 48

9. Other Rulings on this topic

Omit: 'IT 2458; '.

10. Contents

Omit: 'Alternative views 156'.

This Addendum applies on and from 7 December 2011.

Commissioner of Taxation
6 June 2012


ATO references:
NO 1-3G7TH4Q

ISSN: 1039-0731