Edited version of private advice

Authorisation Number: 1052393969794

Date of advice: 8 May 2025

Ruling

Subject: Income tax - self-education expenses

Question 1

Are you entitled to a deduction on self-education expenses?

Answer 1

Yes.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You were employed as a professional on March 20XX, working part-time for two days a week with flexible hours. There was no formal employment contract, instead, the arrangement was based on a 'gentleman's agreement'.

You did not keep a copy of the Job Description from your time as a professional, which was posted on the XX Job Board. However, you have outlined your work responsibilities as follows:

•                     Conducting research to support your employer.

•                     Writing X reports based on your research.

•                     Analysing existing documents relevant to specific situations and advising the employer on the potential consequences.

Your decision to pursue further studies was based on an informal agreement with your employer to expand your knowledge and deepen your understanding of various aspects of your profession. There was no written communication regarding your return to work.

You left job to pursue a Masters degree at the University of XX. Your last day at work was in September 20XX, as indicated on the provided pay statement.

You voluntary terminated your employment, which you have initiated due to the principal employers unfamiliarity with the payroll technology.

You took courses in relation to your profession. Although there was no formal curriculum, a course guide was provided, and the course term was from October 20XX to June 20XX.

During your absence, your employer hired two employees on a casual basis for a few weeks. You inquired if they wanted your assistance in hiring a long-term replacement for the duration of your absence, but it did not proceed.

You lived at XX XX, XX, from September 20XX to August 20XX. This was the College accommodation, assigned by the University.

Your college bills cover tuition, course fees, accommodation, and meals in college, and other associated costs. You have provided copies of these bills.

Your college meals included breakfast, lunch, and dinner, all of which were heavily subsidised through college fees. Additionally, there were compulsory formal dinners for new students and formal dinners during the full term.

In October 20XX you paid the balance on the college bill.

In January 20XX you paid the balance on the college bill.

In May 20XX you paid the balance on the college bill.

In July 20XX you paid the final college bill.

You completed your studies in July 20XX, but your first day back at work as in October 20XX after taking an extended holiday in XX and later in XX to celebrate your graduation.

You resumed the same role upon your return to work, with no changes to your responsibilities, except for taking over sole responsibility for the tasks previously handled by the more senior employee who had resigned, unless these were undertaken by your employer. Additionally, your grade increased under the employment Award, resulting in a significant pay rise.

Your tenure of employment has ended in February 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

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