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: 1052154224230

Date of advice: 9 August 2023

Ruling

Subject: Deductions - work-related expenses - self-education

Question

Are you entitled to claim a deduction for the expenses incurred in undertaking specific units of the Juris Doctor degree under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

Yes, the units Contracts, Disputes and Ethics, and Torts that you have undertaken as part of the Juris Doctor Degree are deductible under section 8-1 of the Income Tax Assessment Act 1997 as the study will enable you to maintain and improve on specific skills or knowledge in relation to your employment activities, which will likely to result in an increase in income, and therefore has a sufficient nexus to your employment

This ruling applies for the following period:

30 June 20YY

The scheme commenced on:

1 July 20YY

Relevant facts and circumstances

You were employed as a Law Clerk at Company A on a casual basis between July 20YY and February 20YY.

You were then employed as a Paralegal with the Disputes team at Company B from March 20YY onwards

Your roles and responsibilities as a Law Clerk and Paralegal include:

•                     Reviewing and drafting contract documentations

•                     Conducting contact negotiations with counter parties

•                     Conducting legal research on domestic and international statutes, case law and government policies

•                     Drafting legal documents, including legal memoranda, legal advice, statutory notices and legal correspondence.

•                     Reviewing case files in the discovery process for court proceedings.

Your studies during the 20YY Financial year undertaken at university as part of the Juris Doctor degree were:

•                     Contract

•                     Disputes and Ethics

•                     Legal theory

•                     Torts

•                     Principles of Public law

•                     Property

You are wanting to claim specific units as a deduction for Self-Education expenses. These units are:

•                     Contracts - DD MM YYYY - DD MM YYYY

•                     Disputes and ethics - DD MM YYYY - DD MM YYYY

•                     Torts - DD MM YYYY - DD MM YYYY

The above units were enrolled in and undertaken during your period of employment at Company A and Company B.

You do not intend to claim a deduction for Self-Education expenses for the following units:

•                     Legal theory

•                     Principles of Public Law

•                     Property

You are not receiving any government allowance to study.

You are not paying for the course fees using the Higher Education Loan Program (HELP).

You have not received a taxable bonded scholarship.

You have been undertaking the study part time alongside your employment.

Your study was not funded by your employer; however, you have noted it was encouraged.

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).