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Edited version of your private ruling
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Ruling
Subject: Self-education expenses
Question 1
Are you entitled to a deduction for self-education expenses incurred in renewing and maintaining your qualification?
Answer: Yes.
Question 2
Are you entitled to a deduction for self-education expenses incurred in maintaining your relevant licence?
Answer: Yes.
This ruling applies for the following periods
Year ended 30 June 2013
Year ended 30 June 2014
The scheme commenced on
1 July 2012
Relevant facts
You are employed full time.
You are employed due to your training.
You incur expenses to renew your qualification and update your skills.
You do not intend on changing roles/employment.
Your employer has not given you any leave or allowances.
Your manager states that your qualifications are 'must haves' for your employment and you apply these relevant skills in your every day work.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
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 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).
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, it is accepted that the renewal and maintenance of your qualifications will maintain or enhance the skills that are required in the performance of your current employment duties. Consequently the self-education expenses incurred have the necessary and relevant connection with the earning of your assessable income and are therefore deductible under section 8-1 of the ITAA 1997.
Therefore, you are entitled to a deduction for the costs incurred.
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