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Edited version of your written advice
Authorisation Number: 1051262994073
Date of advice: 3 August 2017
Ruling
Subject: Deductibility of Self Education Course Fees
Question
Are you entitled to a deduction for self-education expenses consisting of course fees paid for a Masters of XXX course?
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 Masters of XXX sufficiently relates to and improves upon the skills you use in your current income producing activities.
This ruling applies for the following period
Year ended 30 June 201X
The scheme commenced on
1 July 201X
Relevant facts
You are employed full time as a professional.
Your role includes:
● Provision of casework; advice and minor assistance, duty services, community education and contribute to policy and reform
● Representing clients, including preparing matters and personally appearing as an advocate in relevant matters
● Preparing and filing related documents, and completing relevant paperwork
● Supporting XXXX contributions to policy, procedure, reform and service delivery initiatives as needed and participate in developing team plans and work practices
● Travel to regional and remote areas to conduct outreach and provide advice and representation as required
● You act for clients in circumstances where civil law and human rights law are used to enforce legal and social rights
You have been accepted and enrolled in a one year course specialising in X.
Your Director has written a letter of reference supporting your completion of your Master’s Degree.
The Manager of Human Resources has confirmed that you are being granted a year of leave without pay to complete your Masters.
You advise that you have not received financial assistance from your employer or any other party assisting with your course costs.
Evidence of your payment of the total course fees of $XXXX has been provided.
Your confirmation of enrolment has also been provided.
You have provided evidence that your employer does believe this course is directly relevant to your income earning activities and is likely to result in an increase in your income from your current employment
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Further information
In certain circumstances you may have to reduce your allowable self-education expenses by $250 in accordance with section 82A of the Income Tax Assessment Act 1936. However you may have other types of expenses some of which are not allowable as a deduction that can be offset against the $250 before you reduce the amount you can claim for allowable expenses. Further information on how to work out your self education expenses can be accessed by visiting our website at www.ato.gov.au.
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