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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1051277518674

Date of advice: 1 September 2017

Ruling

Subject: Self-education expenses

Question 1

Are you entitled to a deduction for self-education expenses incurred while studying for a degree while working for Employer A?

Answer

Yes.

Having considered your circumstances and the relevant factors the Commissioner has determined that your self-education expenses are allowable under section 8-1 of the ITAA 1997. Further information on the self-education expenses can be found on our website ato.gov.au and entering Quick Code QC 31970 into the search bar at the top right of the page.

Question 2

Are you entitled to a deduction for self-education expenses incurred while studying for a degree while working for Employer B?

Answer

Yes.

Having considered your circumstances and the relevant factors the Commissioner has determined that your self-education expenses are allowable under section 8-1 of the ITAA 1997. Further information on the self-education expenses can be found on our website ato.gov.au and entering Quick Code QC 31970 into the search bar at the top right of the page.

This ruling applies for the following periods:

Year ended 30 June 2016

Year ended 30 June 2017

Year ending 30 June 2018

Year ending 30 June 2019

The scheme commences on:

1 July 2015

Relevant facts and circumstances

You are a registered Professional

You commenced employment in 20AA as a X

In early 20XX you enrolled and commenced further study at a university.

At this time you were employed full time Employer A.

You were employed as a XY

While at Employer A you did not receive any financial assistance, however, you did receive study leave of up to X days per year.

Your responsibilities at Employer A included:

The purpose of your enrolling in your degree was to improve your management skills to assist your role and put you in a better position to attain career progression.

It was also to improve your technical skills, such as negotiation.

In late 20YY you accepted a new full time position with Employer B.

Your responsibilities at Employer B include:

You continued your degree and chose elective subjects that focused on improving your skills in a way that is relevant to your current role.

The degree has also been identified as part of your development plan. This forms part of your internal personal development goals that are required to be set for Employer B’s employees.

You are also completing the degree as part of your career progression with Employer B.

During the recruitment process for your new position it was discussed that Employer B would be supportive of your continued studies and may be in a position to provide financial support.

After being offered, and accepting, the position with Employer B you applied for educational assistance.

Employer B agreed to contribute half of the expenses going forward in completing your degree.

So far you have completed six units of your degree.

You aim to complete the course prior to the end of the 2018/19 financial year.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1

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