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Edited version of private advice
Authorisation Number: 1052245181519
Date of advice: 20 June 2024
Ruling
Subject: Deductions / education and mentoring expenses
Question
Are you entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 for business coaching, mentoring and education?
Answer
Yes
You have demonstrated that your self-education expenses have the relevant nexus to your current income earning activities. You and your key team members require specific skills and knowledge in current positions and to maintain or improve skills or knowledge. The coaching, mentoring and education has led to and is likely to result in - an increase in your income from your current business activities.
Further information about self-education expenses can be found:
• by searching for 'QC72166' our website www.ato.gov.au
• Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual (TR 2024/3) discusses the circumstances under which self-education expenses are allowable as a deduction.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You operate a business that provides training and education. Your business has a trading name and is the trustee of a trust.
COVID impacted the business, you moved all training online. During this time there was a reduction in travel expenses and an increase in participants and demand for training products, which allowed for the expansion of staff numbers.
You sought training, mentoring, education, and support. Similarly, your team required assistance to grow. Business training across various domains were required.
The fees for the training and mentoring were provided.
A description of the self-education expenses undertaken and how these expenses connect to business activities of key personnel was shown.
The training was not used to establish a new income earning activity.
Undertaking this training and mentoring has significantly increased the turnover and profitability of the business, keeping your business afloat during the past four economically uncertain years.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1