Edited version of private advice

Authorisation Number: 1052329715348

Date of advice: 14 November 2024

Ruling

Subject: Self-education expenses

Question 1

Can a tax deduction be claimed for travel and accommodation costs (for your University studies) incurred in respect of the self-education expenses incurred under Label D4 of the taxpayer's tax return?

Answer

Yes.

Your self-education expenses are deductible, as it is accepted the study meets the requirements detailed in Taxation Ruling TR 2024/3 Income Tax: deductibility of self-education expenses incurred by an individual.

You will be required to apportion your self-education expenses to the extent of any private or domestic use.

Further information about self-education expenses can be found by searching 'QC 72166' on ato.gov.au.

This ruling applies for the following periods:

Period end 30 June 202X

Period end 30 June 202Y

The scheme commenced on:

1 February 202X

Relevant facts and circumstances

This private ruling is based on the facts and circumstances set out below. If your facts and circumstances are different from those set out below, this private ruling has no effect, and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

You, the taxpayer, are currently employed in the XXX industry.

During the financial year ended 30 June 202X and the financial year ended 30 June 202Y you resided in XX in the state of XXX.

You are employed on a full-time basis, and it is a requirement for you to be present in XX to carry out your work duties.

All of your meaningful personal possessions are located at your residence in XX.

You successfully enrolled in a university course in YY in the state of YYY and commenced study in February 202X.

In order to undertake these studies, you were required to be physically present at the University to attend classes and lectures.

The University course includes subjects that have a direct correlation to the requirements of your current employment.

Your current employment contract contains the main roles and responsibilities of your position.

The skills obtained on completion of the Course will increase your knowledge and education in your line of work.

The studies will maintain or improve the skills and specific knowledge you have for your current position as well as position you to attain a promotion or lead to a higher level of pay from your current income-earning activities in the future.

You are on a flexible work agreement with your employer which amounts to close to full-time hours allowing you to manage your work commitments while studying part-time at university.

All travel and accommodation expenses are self-funded.

You did not take extended time off work to attend lectures but remained employed throughout the study period.

You have maintained a travel diary listing all the dates you travelled from your home in XX and the days spent in YY studying and attending classes at university.

Your diary states that you spent xx days in YY during the year ended 30 June 202X.

You have not provided entries for the year ended 30 June 202Y.

The days you did not spend in YY were spent in your residence in XX attending to your work commitments.

You entered into a short-term lease of a low-cost apartment which was more cost effective than paying a nightly accommodation fee at a hotel each time you needed to travel to YY for self-education purposes.

The lease of the apartment is shared equally with your partner who travels to YY to stay with you occasionally - due to this arrangement, you are only seeking to claim a reduced percentage of the apartment's rental costs as a taxable deduction.

The apartment is not considered to be a home for yourself or your partner as your primary residence remains in XX.

The apartment is minimally furnished with no meaningful possessions and is used solely for short-term stays during study periods.

There are no established routines in YY outside of your study commitments, and during periods of time when there is a long break in studies you return to XX.

The deductions you are seeking to claim include software subscriptions, flight costs, rent, internet and electricity.

You will apportion the above internet and electricity charges in accordance with study versus private use.

The travel and accommodation (rental) costs will be apportioned over the year ended 30 June 202X and the year ended 30 June 202Y, and a further apportionment will take into account your partner's contribution toward the rent of the apartment.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1