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Edited version of your written advice

Authorisation Number: 1051479812479

Date of advice: 5 February 2019

Ruling

Subject: Self-education expenses

Question 1

Are the course fees paid in connection with a self-education course an allowable deduction to the extent that the course fees are not reimbursed by your employer?

Answer

Yes.

Question 2

Are the travel, accommodation and meal costs associated with a study-tour to Country X, and also associated with attending intensive classes in a city of Australia, incurred in connection with a self-education course an allowable deduction, to the extent that these costs are not reimbursed by your employer and do not relate to any other purpose?

Answer

Yes.

Your self-education expenses are deductible, as it is accepted the study meets the requirements detailed in Taxation Ruling TR 98/9. Further information about self- education expenses can be found by searching 'QC 31970' on ato.gov.au

This ruling applies for the following periods:

Year ending 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

Your employment

You are currently employed on a full time basis, having commenced in late 20XX.

Your employer is wholly owned by a privately owned multi-national company.

You work as part of a small Australian team, and due to this you also support the head multi-national companies other Australian activities and projects on occasions.

In early 20XX your employer seconded you to a related Company (that is also owned by the same privately owned multi-national company) to take on a similar role to that of your other employment position.

You have moved to another state in Australia for the duration of the secondment, where you have signed a lease agreement to rent a residential property in the capital city of that Australian state, where you will be living in until early 20XX.

You have chosen to undertake a self-education course, of which all of the individual subjects relate to both your current employment secondment role, and also that of your other employment position.

You have also chosen to undertake the self-education course in order to gain a better understanding of relevant concepts in order to assist you in both your current employment secondment role, and also that of your other employment position, and to also increase both your skills and future advancement opportunities in both roles.

The course also has a subject which involves an overseas study tour to Country X.

Costs and travel expenses

Your employer is supporting you in completing the self-education course and will be providing you with:

You are eligible for and will be using FEE-HELP to assist you in paying the course fees, and subject to the reimbursement from your employer, you are funding your own educational expenses via FEE-HELP.

You will also incur the following expenses:

You will be maintaining your existing lease on your primary residence in the city where you are currently residing whilst attending the intensive classes for the self-education course.

The deduction you wish to claim for the course fees is the total cost of the course, less an amounts paid under a scholarship and the anticipated reimbursement from your employer. This amount that you wish to claim as a deduction will be deferred under FEE_HELP.

You anticipate that some of your travel costs relating to your travel from the city where you are currently residing to attend the course that is being delivered in a different state of Australia may be reimbursed by your employer.

You have also provided the following information about your related travel, including whether any additional time will be spent on each trip for other purposes, and confirmation of the amount of deductions you wish to claim for each travel expense:

Your contentions

The study you will be undertaking is highly relevant to your current employment and therefore there is a sufficient connection between the skills and knowledge required in your current position and the self-education course.

You have made reference to paragraph 89 of TR 98/9, which provides that where a taxpayer is away from home overnight in connection with a self-education activity, accommodation and meal expenses incurred are deductible.

You also advise that you are entitled to claim a deduction relating to the flights, accommodation and meals due to the following:

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1


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