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Edited version of private advice
Authorisation Number: 1052045239992
Date of advice: 13 October 2022
Ruling
Subject: Self-education expenses
Question
Are you entitled to a deduction for self-education expenses incurred in completing your Diploma of Early Childhood Education and Care under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) after commencing your employment as an Educator?
Answer
Yes
Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business, states that a deduction is allowable for self-education expenses if a taxpayer's current income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of the self-education enables the taxpayer to maintain or improve that skill or knowledge. The expenses you incurred in relation to your course after you commenced employment as an Educator meet this requirement.
This ruling applies for the following periods:
Financial Year ended 30 June 20XX
Financial Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are employed as an Educator at a Child Care Centre.
Prior to gaining that employment, you had commenced studying a diploma of Early Childhood Education and Care.
Your employer requires you to be studying or complete the Diploma as a condition of employment.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1