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Edited version of private advice
Authorisation Number: 1051672999491
Date of advice: 08 May 2020
Ruling
Subject: Self-education expenses
Question 1
Are your self-education expenses deductible?
Answer
Yes. Your self-education expenses are deductible, as it is accepted the study meets the requirements detailed in Taxation Ruling TR 98/9. Further information about self-education expenses can be found by searching 'QC 31970' on ato.gov.au
Question 2
Can you claim all your self-education expenses you paid for in the 20XX financial year as a deduction within the 20XX financial year?
Answer
No. This is a prepaid expense. Section 82KZMof the Income Tax Assessment Act 1936 (ITAA 1936) contains the rules which affect the timing of deductions for certain prepaid expenses.
Question 3
Are the self-education costs incurred to be apportioned across the financial years in which the course is undertaken?
Answer
Yes. The effect of section 82KZMof the ITAA 1936 is to evenly spread the deduction for prepaid expenses over the years comprising the eligible service period.
This ruling applies for the following period:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
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 Business Development Manager in an area where your key duties are to:
· achieve of the national retail sales budget as set by the business each year;
· lead sales effort maintaining a minimum level of activity with the overall sales plan;
· provide updates on investment portfolio issues, changes and decisions for your client base;
· attend industry/client conferences, and review and updates for use by all sales teams.
Your role in the company comprised to:
· facilitate the growth of investment strategy funds;
· maintain high level of activity amongst stakeholders to generate new sales and retain business;
· effectively communicate all aspects of the investment philosophy, process and positioning.
The XXXX Course is the Australian-based registered education program for the XXXX program. The purpose of participating in the course was to further develop your skills and knowledge relevant to your current employment within the organisation in advance analyst knowledge, and building portfolio's. The curriculum includes portfolio construction emphasising markets, applied economics, and asset classes.
You have been and will be supported by your employer for study and exam leave for the period of your study. The course will take place from 20XX to 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1
Income Tax Assessment Act 1936 section 82KZM
Income Tax Assessment Act 1936 subsection 82KZM(1)