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Edited version of your private ruling
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Ruling
Subject: Work related expense - self-education expense
Question 1
Are you entitled to a deduction for the cost of repairs to equipment used for training purposes?
Answer
Yes
This ruling applies for the following period
Year ending 30 June 2012
The scheme commences on
1 July 2012
Relevant facts and circumstances
You are employed.
Training was undertaken to improve your skills used in your current employment.
As part of training, you were required to check the operation of the equipment prior to use. When you completed this check damage occurred to the equipment.
You were required to pay for the cost of repairing the damaged equipment.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1.
Reasons for decision
Taxation Ruling TR 98/9 lists the circumstances in which self-education expenses are an allowable deduction under section 8-1 of the Income Tax Assessment Act 1997. These circumstances include:
· Where the expense has a relevant connection to the taxpayer's current income-earning activities.
· The taxpayer's income-earning activities are based on the exercise of skill or some specific knowledge and the subject of the self-education enables the taxpayer to maintain or improve that skill or knowledge.
· 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.
· The training undertaken has a relevant connection to your current employment. The training received would improve your skills in the performance of your current employment
As such the expenses incurred in this self-education activity would be an allowable deduction. The equipment used to conduct the training was damaged whilst training. The cost to repair the damaged equipment is considered to be an expense for repairs to items of equipment used for self-education.
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