Edited version of private advice

Authorisation Number: 1052059636978

Date of advice: 24 November 2022

Ruling

Subject: General deductions - self-education expenses

Question

Are you entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 for the self-education expenses you incurred in undertaking the Doctor of Medicine?

Answer

Yes.

Your self-education expenses are deductible as they have a direct connection with your income earning activities. 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.

You cannot claim a deduction for the course fees reimbursed by your employer.

Your self-education expenses deduction may also have to be reduced by up to $250.

For more information about the deductibility of self-education expenses search QC 31970 on the ATO website at ato.gov.au.

This ruling applies for the following period:

The income year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You are employed on a full-time basis as a medical professional.

You provided a statement of your employment duties.

You are undertaking part of the Doctor of Medicine (the course).

You have provided an explanation of how the subjects you are undertaking are relevant to your employment.

You have no intention to complete the full course in search of further employment.

You are not receiving a taxable bonded scholarship.

Your employer does not offer study leave in relation to the course.

You paid the course fee upfront in the income year ended 30 June 20XX.

You are entitled to a XX% reimbursement of course fees from your employer on successful completion of the subjects.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1