Edited version of private advice

Authorisation Number: 1052291181427

Date of advice: 19 August 2024

Ruling

Subject: Self-education expenses

Question

Are you entitled to a deduction for the self-education expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs of undertaking a course with XXXX?

Answer

Yes. Your self-education expenses are deductible under section 8-1 of the ITAA 1997. The expenses you incur to complete the course will allow you to improve the knowledge and skills required to carry out your income-earning activities and are likely to lead to an increase in income from your employment. The course has the relevant connection to your income earning activities, and did not enable you to get employment, to obtain new employment or to open up a new income-earning activity. To claim a deduction for a work-related expense, you must have spent the money yourself and weren't reimbursed. Further information about self-education expenses can be found in Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual.

Note: You are not entitled to a deduction for self-education expenses if you are not undertaking income-earning activities to derive assessable income at the time you incurred the expenses. These expenses are not connected to any income-earning activity at the time they are incurred.

This ruling applies for the following periods:

Year ending 30 June 2024

Year ending 30 June 2025

Year ending 30 June 2026

The scheme commenced on:

1 July 2022

Relevant facts and circumstances

On XXXX, you were granted a Student (subclass 500) visa from the Australian Government, Department of Home Affairs.

You subsequently moved to Australia from an overseas country in XXXX.

Before arriving in Australia, you worked in the field of XXXX in your home country for XX years and you had completed two qualifications. Your last role in your home country before moving to Australia was in the role of XXXX for XX years.

On XXXX, you commenced employment with Employer 1. You ceased this role on XXXX.

On XXXX, you commenced a course with XXXX.

The course required you to satisfy Direct Entry Requirements / Minimum Academic Qualifications. You satisfied the eligibility requirements based on your previous qualifications.

You are required to complete sixteen course subjects:

On XXXX you commenced employment with Employer 2. You currently remain employed in this role (permanent part-time).

On XXXX you commenced employment with Employer 3. You currently remain employed in this role (permanent part-time).

The course was undertaken to improve skills in your roles with Employer 1, 2 and 3, and to achieve career advancement in your field.

The total course fee is $XX. You made the first payment of $XX on XXXX.

You are not paying for the course fees using the Higher Education Loan Program (HELP).

You are not receiving any government allowance to study (including Abstudy, Austudy or Youth Allowance).

You are not receiving a taxable bonded scholarship.

You intend to complete the course by XXXX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1