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Edited version of private advice
Authorisation Number: 1052194994253
Date of advice: 28 November 2023
Ruling
Subject: Work-related expenses
Question 1
Are you entitled to a deduction for the course fees incurred in studying the Company Directors Course?
Answer
Yes.
Your course fees meet the requirements under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) and Draft Taxation Ruling TR 2023/D1 Income tax: deductibility of self-education expenses incurred by an individual.
Question 2
Are you entitled to a deduction for the annual membership fee paid to the Australian Institute of Company Directors (AICD)?
Answer
Yes.
This membership fee meets the requirements under section 8-1 of the ITAA 1997 and Taxation Ruling TR 2000/7 Income tax: subscriptions, joining fees, levies and contributions paid to associations by individuals (TR 2000/7).
Question 3
Are you entitled to a deduction of $XX in relation to paying the $XXX.XX joining fee to the AICD?
Answer
Yes.
As per paragraphs 21 and 22 of TR 2000/7, a deduction is allowed for the joining fee up to a maximum of $XX under section 25-55 of the ITAA 1997
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You commenced employment with Company A on XX XX 20XX as a company director and continue to be employed by them.
You are responsible for overseeing all operational activities and for growing the business in a particular State.
Your annual remuneration package exceeds $XXX. You are also eligible to receive an annual bonus. This bonus is KPI and performance driven.
You had an annual review in XX 20XX where all of the above was taken into account and you received a salary increase.
More than a year after you commenced employment as a company director with Company A, you paid the following amounts to the AICD:
• Company Directors Course - $X,XXX.XX
• Annual fee - $XXX.XX
• Joining fee - $XXX.XX
You started the course about 18 months after you commenced employment as a company director with Company A and completed the course a few months later.
Your study was not funded by your employer; however, they provided you with time off as study leave to attend the course.
Relevant legislative provisions
Income Tax Assessment 1997 section 8-1
Income Tax Assessment 1997 section 25-55