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Edited version of your written advice
Authorisation Number: 1051396393975
Date of advice: 13 July 2018
Ruling
Subject: Self-education expenses
Question
Is the cost of your course of study considered an allowable self-education expense?
Answer
Yes
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.
Most self-education expenses are incurred voluntarily and to be allowable under section 8-1of the ITAA 1997, the expenditure must be characterised as having been incurred in gaining or producing assessable income (Fletcher & Ors v. Federal Commissioner of Taxation T 91 ATC 4950 at 4957). Ronpibon Tin N. L v. Federal Commissioner of Taxation (1949) 78 CLR 47 Dixon J at p56 indicated that the character of the expenditure is relevant and incidental to the gaining or producing of assessable income.
Based on the information you have provided the course of study has the relevant nexus to your current position and therefore is an allowable deduction under Section 8-1 of the ITAA 1997.
This ruling applies for the following period:
Year ending 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
In 20XX you completed Professional Training and were admitted to a professional organisation in 20XX and member of a second professional organisation with a relevant certificate
You have worked at Employer A since 20XX
In 20XX you enrolled in a course of study
You paid 75% of the course costs with the other 25% paid by your employer
You hold a position with Employer A, being responsible for research and producing course content for your lectures and tutorials as well as delivering classes
The requirements of your position include undertaking formal research in your area of expertise
The current course is being undertaken to enhance you skills and knowledge
Completing the course is likely to lead to an increase in your income as a lecturer with Employer A
You are required by your employer to undertake the course of study in order to perform the duties of your current position
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1