Edited version of private advice

Authorisation Number: 1052377797607

Date of advice: 26 March 2025

Ruling

Subject: Deductions - self-education expenses

Question 1

Are the course fees for the course deductible pursuant to section 8-1 of the Income tax Assessment Act 1997 (ITAA 1997)?

Answer 1

Yes. You are entitled to claim a deduction for your out-of-pocket course fees you paid, in the year the expenses were incurred. You have shown that there is sufficient connection between the course of self-education and your current income earning activities and 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.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ended 30 June 20XX

The scheme commenced on:

XX XXXX 20XX

Relevant facts and circumstances

On XX XXXX 20XX, you entered an employment contract with your employer as a contractor in the position of senior tax accountant.

In XXXX 20XX, you received confirmation of enrolment at the Australian university A to study the course.

The course builds technical expertise to help solve accounting and business challenges.

The course integrates theoretical and technical knowledge of financial and management accounting, auditing, finance, economics, quantitative methods information systems, business law and taxation. The participant gets hands-on experience with industry-leading software, including Xero.

The course has the following learning outcomes:

•                Interpret and apply rules, regulations and theories to a range of complex professional situations.

•                Communicate accounting advice and knowledge to stakeholders across an organisation.

•                Solve diverse accounting problems in an array of contexts and situations.

•                Stay at the forefront of accounting research, laws and software for best practice.

The course is not supported by a Commonwealth Supported Place (CSP).

On XX XXXX 20XX, you were granted a student visa in Australia.

Until XX XXXX 20XX, you performed your contractor role in Country A.

On XX XXXX 20XX, you arrived in Australia.

On XX XXXX 20XX, you entered a contract with your employer to change from a contractor to a casual employee.

Your job title was accountant and your tasks and responsibilities included, but were not limited to:

•                Preparation of income tax returns.

•                Preparation of financial accounts.

•                Preparation of business activity statements.

•                Preparation of Instalment activity statements.

•                Any other duties deemed necessary.

On XX XXXX 20XX, you commenced the course.

You granted a XX% scholarship towards the expenses of the course.

In the 20XX income year, you paid $XX in courses fees.

In the 20XX income year, you paid $XX in course fees.

On XX XXXX 20XX, you entered a contract with your employer to change from a casual employee to a full-time employee starting from XX XXXX 20XX.

On XX XXXX 20XX, you finished the course.

From XX XXXX 20XX, your job title was XX. You have included in your application your tasks and responsibilities in this role.

Your employer did not provide you with any allowances, reimbursements, time off, or other incentives.

Your total out-of-pocket expenses for the course fees was $XX for the 20XX and 20XX income years.

On XX XXXX 20XX, your employer provided you with a letter of support stating the course's connection to your employment.

Relevant legislative provisions

Income tax Assessment Act 1997 section 8-1