| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012418211379
This edited version of your ruling will be published in the public register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.
Ruling
Subject: Self education expenses
Question
Are you entitled to claim a deduction for self-education expenses?
Answer
Yes
This ruling applies for the following periods
Year ending 30 June 2013
Year ending 30 June 2014
The scheme commenced on
1 July 2012
Relevant facts
You are employed in a particular field.
Minimum pre-employment requirements for your role include the completion of course theory subjects.
The course consists of both practical and theoretical training
The course covers a number of subjects.
These theoretical components are reinforced through practical experience.
You are interested in completing the program now as it will be very beneficial for improving your skills and knowledge in your current role.
The attainment of this course is seen as an advantage in your current role.
This course is listed as a prerequisite for promotion into a leadership position.
You have been verbally advised by management that completing this course will assist in developing your skills and knowledge in your current role.
You will not be conducting training during work hours or taking leaving due to staff shortages.
Your shift pattern gives you adequate time to complete the training in your own time.
You are not looking to complete the course as a precursor to gaining employment.
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 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 the 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 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, it is accepted that the course will maintain or enhance the skills that are required in the performance of your current role. Consequently, the self-education expenses that you will incur 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 self education expenses.