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Edited version of private advice
Authorisation Number: 1051689037231
Date of advice: 27 May 2020
Ruling
Subject: Self education expenses
Question
Are the accommodation and living expenses incurred while studying overseas deductible self-education expenses?
Answer
Yes.
Self-education expenses are generally deductible where the course of study meets the requirements detailed in Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business. The day-to-day costs incurred for accommodation and meals are generally a private, non-claimable expense unless you are:
· participating in self-education activities, and
· required to be temporarily away from home for one or more nights.
Further information about self-education expenses can be found by searching QC 16918 on ato.gov.au
This ruling applies for the following periods:
Year ended 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
You are currently employed as a Director and CEO of several businesses:
Your role requires you to determine the strategy, marketing and manage the day to day operations for the companies.
The skills you have learnt from the course of study will primarily benefit the business with the largest annual turnover and is trading within a highly competitive market.
You completed your course in the 2019-20 financial year.
This course allowed you to gain a broader understanding of how to effectively manage your business operations.
The final elements of the course of study were completed overseas as the subjects were not available in Australia.
You do not have a partner or children and no family travelled with you. You did not establish a new home overseas.
You continued to maintain your home in Australia and did not rent out the property whilst you were overseas studying. You continued to work in your businesses and did not engage in any other employment whilst overseas
You completed your studies and returned home immediately.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
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