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Edited version of your written advice
Authorisation Number: 1051260445453
Date of advice: 28 July 2017
Ruling
Subject: Self Education Expenses
Question 1
Answer
Yes.
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 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.
It is considered that the graduate certificate is sufficiently relates to and improved upon the skills you use in your current income producing activities.
This ruling applies for the following periods:
Year ended 30 June 2017
The scheme commences on:
1 July 2016.
Relevant facts and circumstances
You enrolled in a post graduate certificate in the year ended 30 June 2017. You have provided enrolment details.
You received accreditation from your professional experience in your current income producing position and completed 3 units of study during the period 1 July 2016 to 30 June 2017 in order to complete the requirements of the graduate certificate.
You incurred cost for the 3 units of study. You have provided payment receipt details.
You have stated that you are not likely to obtain a promotion or accept a new or different employment position as a result of this study.
You have stated that you do not intend to travel overseas to perform new duties as a result of this study.
You have stated the primary reason for undertaking this study was to maintain and further develop the skills you use in your current employment position in a specialist team.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1.
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