Edited version of private advice

Authorisation Number: 1051970579513

Date of advice: 8 April 2022

Ruling

Subject: Self-Education Expenses

Question

Can you claim self-education expenses as a deduction under Section 8-1 if the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

Yes. Having considered your circumstances and the relevant factors, you are entitled to a deduction for your self-education expenses under section 8-1 of the ITAA 1997.

It is accepted that your degree will maintain or enhance the skills that are required in the performance of your employment. Your self-education expenses are considered to have the relevant connection to your current income earning activities. Therefore, expenses incurred in relation to your xxxx degree, including the course fees, are considered allowable as a deduction.

It is accepted that the study meets the requirements detailed in Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business.

Additional information

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.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

•                    You are employed as a xxxx in the construction industry.

•                    You are responsible for the entire construction process of an asset, roads and underground networks.

•                    You are required to undertake financial analysis for purchase orders, contribute to tender preparation, review and check all construction and authority drawings, ensure compliance with all relevant legislation and authorities, update and develop software, track milestones and deliveries, seek requisite approvals, relationship and stakeholder management, ensure budgets and key financial KPI's are met, provide comprehensive reporting as well and multiple other items.

•                    You have supplied a detailed roles and responsibilities description from your employer.

•                    You are studying for a xxxx / xxxx (XXX). The XXX will increase your construction and project management skills and improve your business management acumen and will likely lead to an increase in salary. The XXX has helped develop your skills and knowledge in your current teaching role.

•                    The study you will undertake has been supported by your employer who will provide you with flexible working arrangements/leave when needing to complete examinations and components which require compulsory attendance.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

Income Tax Assessment Act 1936 section 82A