Draft Taxation Determination

TD 93/D26

Income tax: first stopped full-time education: tax-free threshold: 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?

• Please note that the PDF version is the authorised version of this draft ruling.
  This document has been finalised by TD 93/157.

FOI status:

Preamble

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

•

was engaged in full-time education at some time during the year; and

•

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
4 February 1993

References

BO BXH0006

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

Legislative References:
ITRA 1986 16
ITRA 1986 17
ITRA 1986 18
ITRA 1986 19
ITRA 1986 20