Disclaimer
You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation Number: 1051889841759

Date of advice: 31 August 2021

Ruling

Subject: Self-education expenses

Question

Are you entitled to a deduction for self-education expense for your Certified Practising Accountant (CPA) program?

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:

Financial year ending 30 June 20XX

Financial year ending 30 June 20XX

The scheme commences on:

X July 20XX

Relevant facts and circumstances

In November 20XX you commenced employment with ABC Pty Ltd.

You previously graduated from university with a Master of Professional Accounting.

You are currently employed as an Assistant Accountant (full time). In your role you are required to prepare individual and company tax returns and financial statements.

On X July 20XX you commenced a Certified Practising Accountant program with CPA Australia. The program provides candidates with a deep understanding of the issues that organisations face every day.

The CPA Program includes four compulsory subjects, two electives and an experience component.

The compulsory subjects include:

  1. Ethics and Governance
  2. Learn how to apply ethical principles and the key corporate governance concepts and mechanisms.
  3. Financial Reporting
  4. We'll teach you how to apply accounting standards, interpret financial reports, and understand their business impacts.
  5. Strategic Management Accounting
  6. Learn how management accounting provides the data critical to business decision making processes. This subject progresses to cover the role of the management accountant in business strategy.
  7. Global Strategy and Leadership
  8. In the capstone subject, you'll use strategic analysis to address complex business issues in a competitive and uncertain business environment.

Your intention for undertaking the CPA program is to enhance your skills and knowledge that will assist you in your current role at ABC Pty Ltd and is likely to lead to promotion and an increase in income. You will be able to work on more difficult accounting and taxation issues.

The program is directly related to your employment as it will enable you achieve more responsibility, more pay and more opportunities. You are not undertaking the course to obtain new employment.

Your employer supports your ambition to undertake the CPA program.

You do not receive Austudy, ABSTUDY or Youth Allowance to study. You do not receive a taxable bonded scholarship. You do not receive an allowance or reimbursement for the expenses incurred in relation to this course.

You will incur the following costs relating to the CPA program:

•         Tuition fee for each subject ($X per unit)

•         CPA Membership fee ($X per year)

•         Home office running expense

•         Stationery and home office equipment

You intend to complete the CPA program by XX 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).