Edited version of private advice

Authorisation Number: 1052393776824

Date of advice: 12 May 2025

Ruling

Subject: Self-Education Expenses

Question 1

Are you entitled to a partial deduction for the self-education expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs of undertaking a course?

Answer 1

Yes. Your self-education expenses are partially deductible under section 8-1 of the ITAA 1997. The expenses you incur to complete the course will allow you to improve the knowledge and skills required to carry out your current income-earning activities and are likely to lead to an increase in income from your employment. The course has the relevant connection to your income earning activities, and did not enable you to get employment, to obtain new employment or to open up a new income-earning activity.

In your case you established your Australian residency for tax purposes on DD MM YY, and you incurred course fees - $XX paid on DD MM YY and $XX paid on DD MM YY.

To claim a deduction for these self-education expenses, you must have spent the money yourself and weren't reimbursed. Further information about self-education expenses can be found in Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual.

This ruling applies for the following period:

DD MM YY

The scheme commenced on:

DD MM YY

Relevant facts and circumstances

You are a citizen of Country A.

On DD MM YY, you commenced employment with Organisation A.

You are paid in foreign currency.

On DD MM YY, you received an Offer of Admission for a course at an Australian university.

On DD MM YY, you commenced the course. You initially completed your study online whilst you continued living and working in Country A.

You were required to complete five course subjects.

The course was undertaken to improve skills in your current role with Organisation A and to achieve career advancement. The course has enhanced your capabilities in critical areas, which are essential for performing and advancing in your current position. Upon completion of the course, you are aiming to obtain a promotion with Organisation A.

On DD MM YY, you were granted VISA 1 from the Australian Government, Department of Home Affairs.

You moved to Australia from Country A on DD MM YY to attend the course in person.

From DD MM YY to DD MM YY, you were staying temporarily in a student apartment and had not decided to reside long-term in Australia

The total cost of the course was $XX.

You are seeking to claim course payments made after you became an Australian resident for tax purposes ($XX paid on DD MM YY and $XX paid on DD MM YY).

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

You are not receiving any government allowance to study (including Abstudy, Austudy or Youth Allowance).

You are not receiving a taxable bonded scholarship.

You completed the course on DD MM YY.

On DD MM YY, you were granted Visa 2 from the Australian Government, Department of Home Affairs.

You intend to lodge your 20XX tax return as follows:

•                     From DD MM YY to DD MM YY: you wish to be treated as a non-resident for tax purposes and you will report only Australian-sourced income during this period.

•                     From DD MM YY to DD MM YY: you wish to be treated as a non-tax resident as you were staying in temporary accommodation.

•                     From DD MM YY and beyond, you will lodge your tax return as a tax resident. You intend to claim the part-year tax-free threshold from DD MM YY (to be reported at item A2) on your return and you will also report your foreign income.

You intend to remain in Australia and continue working with Organisation A from home. You are considering applying for permanent residency, although you have not yet submitted a formal application. You and your spouse have established your home in Australia and you are making long-term plans to settle permanently. You and your spouse do not have any fixed plans to return to Country A permanently, as your focus remains on building your life in Australia.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

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