Edited version of your private ruling

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Ruling

Subject: clinical supervision

Question

Are you entitled to a deduction for expenditure incurred to participate in clinical supervision in your workplace?

Answer

Yes.

This ruling applies for the following period:

Year ended 30 June 2011

The scheme commences on:

1 July 2010

Relevant facts and circumstances

The arrangement that is the subject of the private ruling is described below. This description is based on the following documents. These documents form part of and are to be read with this description. The relevant documents are:

· the application for private ruling;

· the documents provided with the application for private ruling; and

· the documents provided in response to a request for further information.

You were employed as a specialist nurse.

You worked with clients with complex needs, both medical and psychological.

A specific condition listed in your position description details that you are expected to participate in the professional or clinical supervision of your case work and service delivery.

Clinical or professional supervision ensures that your practice is ethical, professional and explores all options for the client.

Clinical supervision is used in counselling, psychotherapy and other mental health disciplines as well as many other professions engaged in working with people.

The supervision consists of the practitioner meeting regularly with another professional with training in the skills of supervision, to discuss casework and other professional issues in a structured way.

The purpose of clinical supervision is to allow the practitioner to learn from the supervisor's experience and expertise, as well as to ensure good service is provided to the client or patient.

You sought the clinical supervision services of another medical professional.

You have incurred expenditure to have clinical supervision and have kept all relevant receipts.

Clinical supervision is not a requirement of obtaining a qualification but it is a part of best practice for your role.

You did not receive reimbursement from your employer for the expenses you incurred.

Reasons for decision

Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income, except where the outgoings are of a capital, private or domestic nature, or relate to earning of exempt 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 self-education enables the taxpayer to maintain or improve that skill or knowledge.

If the study of self-education objectively leads to, or is likely to lead to an increase in a taxpayer's income from their current income earning activities in the future, a deduction is allowable (paragraph 14 of TR 98/9).

However, no deduction is allowable for self-education expenses if the study is to enable a taxpayer to get employment, to obtain new employment, or to open up a new income-earning activity (whether in business or in the taxpayer's current employment). This includes studies that relate to a particular profession, occupation or field of employment in which the taxpayer is not yet engaged. The expenses are incurred at a point too soon to be regarded as incurred in gaining or producing assessable income.

In your case, you were employed as a specialist nurse. You have incurred expenditure to participate in clinical supervision. You are expected to participate in this supervision as a specific condition outlined in your position description.

It is accepted that your participation in professional supervision will enhance the skills required in the performance of your duties. Further, the clinical supervision undertaken is not to obtain a qualification for a new position. Consequently, the expenses you have incurred for clinical supervision have the necessary and relevant connection with the earning of your assessable income.

You are therefore entitled to a deduction under section 8-1 of the ITAA 1997 for expenses incurred to undertake clinical supervision.