Edited version of private advice

Authorisation Number: 1051846792502

Date of advice: 2 June 2021

Ruling

Subject: Self-education expenses

Question

Are the course fees paid in connection with the self-education course (Master of Financial Planning) an allowable deduction?

Answer

Yes.

Your self-education expenses are deductible, the study meets the requirements detailed in Taxation Ruling TR 98/9. Further information about self-education expenses can be found by searching Quick Code (QC) 31970 at ato.gov.au

Other relevant comments

Subject to the general tests of Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997), certain self-education expenses are allowable deductions.

For more information on how to work out your self-education expenses (including the types of self-education expenses that are allowable as deductions) search for Quick Code (QC) 16918 at ato.gov.au.

Note: In certain circumstances you may have to reduce your allowable self-education expenses by $250. However, you may have other types of expenses some of which are not allowable as a deduction that can be offset against the $250 before you reduce the amount you can claim for allowable expenses. However, the Government has announced in the 20XX-XX Federal Budget that this requirement will be removed, and this will take effect from the first income year after the date of royal assent of the enabling legislation.

FEE HELP

You are entitled to claim a deduction under section 8-1 of the ITAA 1997 for expenses you incurred for the course fees as the expenses directly relate to your current income earning activities, even though you have obtained a loan for the payment of those fees under FEE-HELP.

This ruling applies for the following periods:

Year ending 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You are currently employed as an XXXXXX.

You are due to be recognised in the profession within the next year and you are a current member of a relevant professional body.

Your current position includes management and advice of client's XXXX as well as the provision of general (non-product) advice.

Some examples of general advice that you provide in your current position are as follows:

•         Advice, management and application of client estates. This includes the creation of trusts and liaison with legal advisors for the formation of a will.

•         Business structures advise that covers aspects such as risk, asset protection, tax and succession/exit planning. Under this context we will also look to established recommended structures.

•         Provision of advice regarding superannuation and SMSF entity types. This is inclusive of limited advice regarding taxation implications of superannuation contributions, compliance in respect of SMSF and advice regarding SG obligations of employers.

•         Share valuations in regards to securities of a company and interests in a trust.

•         Broad asset allocation advice pertaining to a client's SMSF not inclusive of product advice & specific advice.

You recently began tertiary studies in the course with an Australian University. The proposed study period for this course is from early in 20XX to late-20XX.

You have received recognition of prior learning for some units as these subjects were covered in your XXXXX tertiary qualification which you obtained a few years ago.

You do not have any intention of pursuing a career as a formal XXXXX nor will this new qualification allow you to pursue new income sources.

The course has been sought in order to round out your experience in providing advice (limited to what is allowed by law) to your clients.

Within the course syllabus, you are due to cover a large degree of legislation that is also applicable to the accounting profession.

You are paying for the entire course fees using FEE-HELP.

Your employer has provided you with time off work in order to complete the course.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

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