Edited version of private advice

Authorisation Number: 1052179876470

Date of advice: 12 October 2023

Ruling

Subject: Deduction - self-education expenses

Question

Can you deduct the self-education expenses incurred in relation to the renewal of your hot air balloon licence, including for the costs of the hot air balloon fuel and hire, accommodation, and cost of fuel for the travel to attend the training under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

Yes.

Your expenses are directly attributable to your income-earning activities and meet the requirements in TR 2023/D1 Income tax: deductibility of self-education expenses incurred by an individual and are eligible deductions.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You are employed within the aviation industry and have extensive experience in the industry

You have expertise in dealing with hot air balloons.

Your tasks include auditing operators, balloon maintenance, conducting oral exams and assessing incidents involving hot air balloons.

It is a legal requirement, that for you to perform the duties of your role, that you hold a current, valid hot air balloon licence.

In 20XX, you attended a training school and gained your Australian hot air balloon licence.

You were due to renew your licence in 20XX however, could not find any available balloon pilots due to several remaining COVID restrictions.

In 20XX, you applied for unpaid leave with your employer to undertake the training required to renew your hot air balloon licence.

You commenced your hot air balloon licence renewal in XX and XX 20XX and completed one week of the required two weeks to renew your licence.

During this first week you incurred the following expenses:

•         Motel accommodation for travel to XX

•         Caravan park accommodation in XX

•         Expenses relating to the hire and fuel for a hot air balloon

•         Travel expenses, including fuel, covering the journey.

Due to weather conditions the second week of your licence renewal was completed in mid 20XX.

During this second week of training, you incurred the following expenses:

•         Motel accommodation for travel to XX

•         Expenses relating to the hire and fuel for a hot air balloon

•         Travel expenses, including fuel, covering the journey.

You did not incur any accommodation expenses in XX during this second training period as you stayed with friends.

On you return home, after the second week of training, you participated in another flight check with a different pilot. This flight check was required as part of the licence renewal process, and you incurred the following expenses:

•         Motel accommodation

•         Expenses for the hire and fuel of a hot air balloon, you have not yet received an invoice for this expense.

Your employer has not provided any reimbursement or paid any allowance in relation to your licence renewal.

There will be no pay rise as a result of the training.

You maintain a diary of all flights you have undertaken to renew your hot air balloon licence.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1