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Taxation Determination

TD 93/157

Income tax: has a person stopped full-time education for the first time during the year of income if that person completed secondary education at the end of the school year and could not obtain enrolment in a further course of full-time education until after 30 June?

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FOI status:

may be releasedFOI number: I 1215868

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. Yes. The person first stopped full-time education because he/she:

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was engaged in full-time education at some time during the year; and
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was not engaged in full-time education at 30 June.

2. Although enrolment in a course of education is deemed to be engagement in that course, the fact that the person was seeking enrolment does not amount to engagement in full-time education.

3. Sections 16-20 inclusive of the Income Tax Rates Act 1986 say that when a person has first stopped full-time education at a school, college, university or similar institution during the year of income, the tax-free threshold generally available to resident individuals may need to be reduced in working out the tax payable.

Example:

Deanne completed Year 12 and obtained the Victorian Certificate of Education in December 1991. Her various applications for admission to post-secondary full-time courses at established educational institutions were unsuccessful until she became enrolled at a TAFE College in July 1992 for a course commencing later that month. Deanne first stopped full-time education during the 1991-1992 income year and the tax-free threshold generally available, i.e., $5400, is reduced on a pro-rata monthly basis.

Commissioner of Taxation
12/8/93

Previously issued as Draft TD 93/D26

References

ATO references:
NO BXH0006

ISSN 1038 - 8982

Subject References:
first stopped full-time education;
students;
tax-free threshold

Legislative References:
ITRA 1986 16-20

TD 93/157 history
  Date: Version: Change:
You are here 12 August 1993 Original ruling  
  20 December 2016 Withdrawn  

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