Edited version of private advice

Authorisation Number: 1051802380273

Date of advice: 25 February 2021

Ruling

Subject: Self-education expenses

Question

Are you entitled to a deduction for your self-education expenses?

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

This ruling applies for the following periods:

Year ending 30 June 20XX

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You currently work as a senior electrical designer.

You commenced work with your current employer about X months ago.

You have a casual contract, working on average 4 days per week, 8-9 hours per day (32-36 hours per week).

You previously completed an Advanced Diploma in Electrical Engineering at TAFE in 20XX.

You commenced a Bachelor of Engineering degree at University within the last 12 months.

The course will take approximately 6 years to complete.

The total cost of the course is approximately $X.

Your self-education expenses will include the amounts you pay towards the cost of the course (excluding any amounts that are not deductible under section 26-20 of the Income Tax Assessment Act 1997).

Your employer strongly supports your decision to complete the course. Your employer is very supportive of furthering your career and taking opportunities relevant to the engineering field.

Your employer provides:

•         Study leave (1.5 days off per week during normal university semester)

•         Exam time study leave at your request (generally 10 working days off around exam time)

•         Once your degree is finished, a position with your current employer will most likely become available for you to move into an engineering role in the same team you already work in.

The study is not undertaken to help you obtain employment or to get new employment as you are currently happily employed.

Your current employer has advised that they will offer you a permanent position as an Electrical Engineer after you graduate with an Electrical Engineering degree. This position would be a promotion that would in time lead to an increase in your income.

The course will help you improve specific skills and knowledge in your current electrical designer role and will also enable you achieve career progression (within the same occupation stream).

Assumptions

You will continue to be employed by your current employer during the period of this ruling.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1