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Ruling
Subject: Deduction for self education expenses
Question
Are you entitled to claim a deduction for work-related self education expenses?
Answer
No
This ruling applies for the following periods:
Year ended 30 June 2010
Year ended 30 June 2011
Year ended 30 June 2012
Year ended 30 June 2013
Year ended 30 June 2014
The scheme commences on:
1 July 2009
Relevant facts and circumstances
You recognised as being an expert in your field and run training courses for your employer.
Your employer had paid for you to receive a certificate of competency that recognises your level of skill
You own a private vehicle and wish to attribute 50% of its use to you using it for the maintenance of your work skills.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for losses and outgoings which are incurred in the course of gaining or producing assessable income, unless the losses or outgoings are of a capital, private or domestic nature.
You consider that portion of the use of your vehicle is a self education exercise.
Taxation Ruling TR 98/9 discusses 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 (Federal Commissioner of Taxation v. Finn (1961) 106 CLR 60, (1961) 12 ATD 348).
It is considered that the use of your vehicle is not for the maintenance or improvement of your skills as an expert in vehicle operations.
Owning and operating your vehicle is not considered to be a self education expenses, it is considered to be an expenditure of a private nature.
Therefore, you are not entitled to a deduction.