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Edited version of your private ruling
Authorisation Number: 1012532110004
Ruling
Subject: Self-education expenses
Question
Are you entitled to a deduction for your self-education expenses?
Answer
Yes.
This ruling applies for the following periods:
Year ended 30 June 2012
Year ended 30 June 2013
The scheme commences on:
1 July 2011
Relevant facts and circumstances
You worked as an employee
You studied a course to upgrade your skills, to get a pay rise and to get promoted.
After finishing your course you have been promoted at the same work place.
You did not take out a loan or receive government assistance to pay your course fees.
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.
The Commissioners view on the deductibility of self-education expenses is contained in Taxation Ruling TR 98/9. Paragraph 13 of TR 98/9 states:
If a taxpayer's income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of self-education enables the taxpayer to maintain or improve that skill or knowledge, the self-education expenses are allowable as a deduction.
In your case, it is accepted that the subjects you studied maintained or enhanced the skills that were required to perform your then current employment duties. Consequently, the self-education expenses incurred in undertaking the course have the necessary and relevant connection with the earning of your assessable income. The self-education expenses are therefore deductible under section 8-1 of the ITAA 1997.