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Edited version of your written advice
Authorisation Number: 1012844375471
Date of advice: 21 July 2015
Ruling
Subject: Self-education expenses
Question
Are you entitled to a deduction for self-education expenses incurred in obtaining your multi engine command instrument rating (MECIR)?
Answer
Yes.
This ruling applies for the following period
Year ended 30 June 20XX
The scheme commences on
1 July 20XX
Relevant facts and circumstances
You have been employed as an engine flight instructor.
You undertook a course to obtain your MECIR.
The MEICR will allow you to obtain a position of multi-flight instructor with your current employer which will advance your career.
You have incurred costs in undertaking the training course.
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 Income tax: deductibility of self-education expenses incurred by an employee or a person in business 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).
In your case, you are employed as a flight instructor. It is accepted that the study you have undertaken will enhance the skills that are required in the performance of your current employment duties. Consequently, the self-education expenses you have incurred have the necessary and relevant connection with the earning of your assessable income and are therefore deductable under section 8-1 of the ITAA 1997.