Edited version of private advice

Authorisation Number: 1051982025504

Date of advice: 19 May 2022

Ruling

Subject: Self-education expenses

Question

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

Answer

Yes. The course you have undertaken has enhanced the skills that are required in the performance of your current employment duties. The self-education expenses incurred in undertaking the course have sufficient connection with the earning of your assessable income and are therefore deductible under section 8-1 of the ITAA 1997.

Where self-education expenses are deductible under section 8-1 these may include tuition fees paid from FEE-HELP loan funds. Section 26-20 of the ITAA 1997 does not prevent deductions for course fees paid from a loan obtained under the FEE-HELP scheme. Refer to ATO Interpretive Decision 2005/26 Income Tax - Deductions: self-education - course fees paid from FEE-HELP loan funds.

This ruling applies for the following periods:

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

You are an executive sales representative working for a company.

You are the company's lead representative for multiple Australian states.

You continue to work in the same role since starting employment for your current employer in 20XX.

You have explained that your position is the most senior role possible for a sales representative in your company.

Responsibilities and duties of your employment include:

• Managing key accounts in multiple regions, including remote parts of Australia.
• Organising and delivering product training for industry professionals.
• Ensuring that industry professionals are trained in the technical application of the product.
• Providing educational meetings.
• Providing customer interaction feedback to company leadership.
• Disseminating information to customers on industry developments.
• Creating and uncovering new business opportunities, increasing sales, product awareness and market share.
• Increasing awareness of the benefits of the product.
• Estimating the return on investment using net present value forecasting for budgeting of sales and project evaluation.
• Developing territorial business strategies.
• Producing and presenting marketing and sales analyses.
• Developing, recommending, and implementing team and territory projects.
• Member of multiple boards and committees within the organisation, roles in in which you:

­   Oversee and manage budget planning ensuring sound financial stewardship is maintained.

­   Are responsible for developing and implementing compliance and ethical behaviour strategies.

­   Provide advice to the board.

­   Develop environmental and social governance strategies.

­   Monitor and encourage ESG compliance within the organisation.

­   Have been involved in the development and delivery of a company project.

You started studying a Master of Business Administration (Human Resources Specialisation) through an educational institution in 20XX.

You completed your studies in 20XX.

You have paid for the course yourself using the FEE-HELP program.

Your employer has provided you with some study leave.

Relevant legislative provisions

Income Tax Assessment Act section 8-1