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Edited version of private ruling
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Ruling
Subject: Self-education expenses
Question
Are you entitled to claim a full deduction for accommodation expenses incurred whilst attending the seminar?
Answer: No.
This ruling applies for the following period
Year ended 30 June 2010
The scheme commenced on
1 July 2009
Relevant facts
You are employed in a particular profession in City A.
You attended a seminar which was held in City B.
Your spouse accompanied you to City B. Your spouse is not employed in the same field as you and did not attend the seminar.
You incurred accommodation expenses to attend the seminar.
The accommodation was for both yourself and your spouse.
The accommodation expenses would have been the same amount if you had travelled to City B alone.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Self-education expenses are deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) where they have a relevant connection to the taxpayer's income.
Taxation Ruling TR 98/9 discusses the circumstances under which self-education expenses are allowable as a deduction. A deduction is allowable for self-education expenses if a taxpayer's current income earning activities are based on the exercise of a skill or some specific knowledge and the subject of the self-education enables the taxpayer to maintain or improve that skill or knowledge.
Similarly, if the study of a subject of self-education objectively leads to, or is likely to lead to an increase in a taxpayer's income from his or her current income earning activities in the future, a deduction is allowable.
In your case we accept that the seminar has a direct nexus to producing your assessable income and the reason for making the trip was to attend the seminar. However, as the accommodation was used by both yourself and your spouse, part of the accommodation cost was for private purposes. This is the case even though the accommodation cost would have been the same if you had travelled alone.
As half of the accommodation was used for work related purposes, you are entitled to a deduction under section 8-1 of the ITAA 1997 for half the cost of your accommodation.