Edited version of private advice

Authorisation Number: 1052322290995

Date of advice: 23 October 2024

Ruling

Subject: Self-education expenses

Question

Are you entitled to claim a work-related self-education deduction?

Answer

Yes.

This ruling applies for the following period:

Year ending 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You are employed as a Human Resources Business Partner.

JOB DESCRIPTION:

•         Read the environment and interpret data to diagnose business issues and develop innovative and effective people solutions.

•         Lead the successful development and implementation of projects in the execution of HR initiatives across the full employee lifecycle.

•         Role model and integrate high standards of professional behaviour and ethics in line with employer Values and Code of Conduct throughout all organisational and business practices.

•         Contribute to and promotes a culture of high performance and a disciplined approach to work.

•         'Coach the coaches' to improve leadership effectiveness (and deliver Productive outcomes).

•         Partner with leaders to develop deep talent bench strength.

•         Partner with leaders to leverage the value of a Diverse and Inclusive workplace.

•         Understand change management principles and translate knowledge into workable actions.

•         Ensure change initiatives are focused and supportive of business strategy and are executed in line with employer Values and behaviours.

•         Partner with leaders to help them predict responses to change and plan the change accordingly.

ACCOUNTABILITIES:

•         Lead, manage and promote HR and people management practices to achieve organisational success through excellent stakeholder relationships and continuous service improvement activities. Including the coordination, development and implementation of HR solutions that address key workforce challenges for the medium and long-term.

•         Provide SME input and advice to delivery projects in relation to Industrial Relations Management including, but not limited to, participating in Stage Gate workshops, working with delivery partners to develop project specific Industrial Relations Management Plans (IRMP), ensuring delivery partner compliance with agreed IRMP's, and maintaining working relationships with delivery partner peers.

•         Partner with internal HR Specialists (Reward/Resourcing/Organisational Development) to obtain specialist advice on behalf of line leaders.

COMPETENCIES:

•         Build positive work relationships - use appropriate methods and flexible interpersonal style to assist in building cohesive and effective operational working relationships within the organisation and with external parties.

•         Commercial acumen - clearly understand the business impacts of decisions on a financial, human resource, client and supplier level and remain aware of potential related issues that may arise.

•         Communication skills - clearly convey information and ideas through a variety of media to individuals or groups in a manner that engages the audience and helps them understand and retain the message.

•         Creative thinking - ability to think and act innovatively and resourcefully, anticipate opportunities for improvement, challenge traditional assumptions and solve problems creatively.

•         Critical thinking and analytical ability - the ability to conceptualise, apply, analyse, synthesise and/or evaluate information gathered from observation, reasoning, or communication, as a guide to belief or action.

•         Decision making - make sound and timely decisions in accordance with ARTC's vision, mission, goals and values giving consideration to all relevant factors and potential broader impact.

•         Gaining commitment - use appropriate interpersonal style and techniques, adapting behaviour to accommodate tasks, situations and individuals involved to gain acceptance of ideas or plans.

•         Information monitoring - setting up procedures to collect and review information needed to manage an organisation, project or on-going activities, and applying analytical and information interpretation skills.

•         Interpersonal skills - ability to build and sustain relationships, obtain cooperation, and develop collaborative working relationships.

•         Managing work - effectively manage one's time and resources to ensure that work is completed efficiently and to quality standard.

•         Problem solving - objectively identify the causes of a problem and propose potential, often innovative, solutions to the problem, which will be agreeable to multiple parties or individuals and, where necessary, evaluate the outcome.

•         Quality orientation - ensure that consideration is given to quality outcomes in the performance of all tasks.

•         Results orientation - ability to consistently achieve work objectives consistent with ARTC's vision and mission.

•         Safety orientation - ability to understand and apply safety management principles, in accordance with ARTC's Work Health and Safety (WH&S) policy and relevant rail safety legislation.

•         Strategic decision making - ability to identify key issues and parties relevant to achieving long term goals and develop courses of action based on logical assumptions, facts, resources, constraints and organisational values.

•         Work Standards - setting high standards of performance for self and others; assuming responsibility and accountability for successfully completing assignments or tasks; self-imposing standards of excellence rather than having standards imposed.

KNOWLEDGE, SKILLS, AND EXPERIENCE:

•         Relevant tertiary qualification and/or extensive knowledge of human resources management issues and relevant legislation, regulations, policies and systems and industry trends.

•         Experience in the delivery of operational HR activities to business in several major categories: HR policies and procedures, HR systems and process, management of employee and industrial relations, talent management, learning, performance management and remuneration programs.

•         Experience working within Industrial Relations frameworks and legislation within a major project environment, preferably with a combination of client-side and contracting partner experience.

•         Partner with leaders for increased organisation effectiveness (including assessment/diagnosis, contracting, action planning, evaluation, and follow-up).

•         Strong stakeholder management, relationship building and influencing ability across all levels of an organisation.

•         Experience in leading or participating in large scale organisational change events.

•         Identify and develop objectives, methods and quality control measures and takes action to improve process and program results.

•         Understand the talent needs of the business and identify talent issues before they affect the business.

•         Experience in Design programs and structures around strategic business objectives.

You completed a Certificate IV in Work Health course.

UNITS OF COMPETENCY:

BSBINS401 Analyse and present research information.

BSBWHS418 Assist with managing WHS compliance of contractors.

BSBWHS412 Assist with workplace compliance with WHS laws.

BSBWHS413 Contribute to implementation and maintenance of WHS consultation and participation processes.

BSBWHS415 Contribute to implementing WHS management systems.

BSBWHS414 Contribute to WHS risk management.

BSBWHS416 Contribute to workplace incident response.

BSBLDR411 Demonstrate leadership in the workplace.

BSBWHS411 Implement and monitor WHS policies, procedures, and programs.

BSBWRT411 Write complex documents.

COURSE DETAILS:

This course is designed to give the participant the knowledge and skills to work within an organisation as a WHS safety advisor, assessor, officer, or supervisor. During the course participants will learn to identify hazards and risks, implement strategies to control those risks and to comply with current WHS health and safety legislation. This course will give the participant the knowledge and confidence to organise a company's WHS management systems contributing to health and safety within the workplace.

You commenced a Graduate Certificate in Occupational Health and Safety course.

SUBJECTS:

OHS6130 Workplace Health and Safety Law.

OHS6131 Occupational Health and Safety Risk Management.

OHS6132 Occupational Health and Safety Management Systems.

COURSE DETAILS:

•         Communicate specialised OHS/WHS knowledge, concepts, and skills to a variety of audiences.

•         Apply independent judgement when investigating and evaluating complex OHS/WHS situations to generate solutions.

•         Demonstrate management skills by planning, implementing, and evaluating substantial OHS/WHS projects.

You are undertaking these studies to:

•         gain qualifications that better ensure your job security with a unique set of qualifications needed by your employer,

•         have the ability to negotiate a specific role across Human Resources and Safety that will allow you to request a higher salary, and

•         better equip you to progress to a management role in the future.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1

Reasons for decision

Question

Are you entitled to claim a work-related self-education deduction?

Summary

You are entitled to claim the course fees as a self-education deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997).

Detailed reasoning

Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income.

Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income: except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income.

Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual, provides the Commissioner's view for the circumstances under which self-education expenses are allowable as a deduction.

Self-education expenses are incurred in gaining or producing your assessable income if either or both of the following apply:

•         Your income-earning activities are based on the exercise of a skill, or some specific knowledge and the self-education enables you to maintain or improve that skill or knowledge.

•         The self-education objectively leads to, or is likely to lead to, an increase in your income from your current income-earning activities in the future.

However, no deduction is allowable for self-education expenses if the study is designed to enable a taxpayer to open-up a new income-earning activity, whether in business or in the taxpayer's current employment. Such expenses of self-education are incurred at a point too soon to be regarded as incurred in gaining or producing assessable income (see Federal Commissioner of Taxation v. Maddalena (1971) 45 ALJR 426; (1971) 2 ATR 541; 71 ATC 4161; TR 98/9).

Application to your circumstances

In your case, it is accepted that the Certificate IV Occupational Health and Safety (OHS) course and the Graduate Certificate in OHS (Semester 1) enables you to enhance the skills that are required in the performance of your employment duties and may lead to an increase in your income from your current income-earning activities in the future.

We are satisfied that there is a nexus between the self-education expenses incurred and the earning of your assessable income therefore, the expenses are deductible under section 8-1 of the ITAA 1997.