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Edited version of your written advice
Authorisation Number: 1012737457337
Ruling
Subject: Self-education expenses
Question 1
Are you entitled to a deduction for self-education expenses?
Answer
Yes.
This ruling applies for the following period:
Year ending 30 June 2015
The scheme commences on:
1 July 2014
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are employed as a maintenance engineer.
After certain maintenance has been completed, the engines are operated whilst on the ground to ensure safe operation. This duty can be performed either by qualified authorised aircrew or qualified authorised maintenance engineers.
If you obtained the skills to operate the engines, you have the potential to increase your engineering authority in your current 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 Section 8-1 of the Income Tax Assessment Act 1997 states that you can deduct from your assessable income any loss or outgoing to the extent to which it is incurred in gaining or producing your assessable income, except where the loss or outgoing is of a capital, private or domestic nature.
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 (Federal Commissioner of Taxation v. Finn (1961) 106 CLR 60, (1961) 12 ATD 348).
Taxation Ruling TR 98/9 also states that 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, the self-education expenses are allowable as a deduction.
In your case you plan on gaining skills to operate the engines. It is accepted that this course will maintain and enhance the skills that are required in the performance of your current employment activities.
Consequently, as there is the necessary connection between the course and your current income-earning activities you are entitled to claim a deduction for your course expenses under section 8-1 of the ITAA 1997.
Additional information
Please note that the self-education expenses you can deduct may be subject to a reduction of up to $250 in accordance with section 82A of the Income Tax Assessment Act 1936. An explanation on how this provision operates is provided at paragraphs 119 to 155 of TR 98/9, which can be accessed on the Tax Office's website at www.ato.gov.au.