Edited version of private advice

Authorisation Number: 1052343002059

Date of advice: 18 December 2024

Ruling

Subject: Self-education expenses

Question 1

Are you entitled to a deduction for self-education expenses, which were incurred whilst you were employed as a XX XX with your employer, in association with completing a Graduate Diploma of XX XX and Master of XX XX with an Australian University under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer 1

Yes.

Your self-education expenses are deductible under section 8-1 of the ITAA 1997. The expenses you incurred to complete the course while you were employed with XX XX allowed you to improve the knowledge and skills required to carry out your income-earning activities at the time you were studying and working.

Further information about self-education expenses can be found in Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual.

You can claim the self-education expenses at the time you incurred the expense. The Commissioner's view of the meaning of 'incurred' for the purposes of section 8-1 is set out in Taxation Ruling TR 97/7 Income tax: section 8-1 - meaning of 'incurred' - timing of deductions. To incur an expense means that you must actually pay, or be obliged to pay, for the good or service.

Consequently, the expenses will be deductible in the 20XX, 20XX, 20XX and 20XX years, based on when the expenses were incurred while you were employed as XX XX with your employer.

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 commenced on:

XX XX 20XX

Relevant facts and circumstances

On XX XX 20XX, you commenced employment with XX XX in the role of XXX XXX.

On XX XX 20XX you commenced a Graduate Diploma of XXX XXX course with an Australian University.

On XX XX 20XX you continued the course to a Master of XXX XXX with an Australian University.

On XX XX 20XX your employment with XX XX ceased.

Employment responsibilities

You have supplied a letter dated XX XX 20XX from your previous employer.

When you were employed by XX XX and studying at the same time, these were your responsibilities.

Responsibilities

You worked within a team to design of innovative network and systems.

You developed innovative products.

You designed superior networks, platforms and services.

Collaborated with team members to design superior networks, platforms and services.

Took ownership of assigned work tasks, leveraging your knowledge and practical experience.

Took initiative to analyse and identify system performance trends.

Applied and continued to build your knowledge in domain expertise.

Applied your critical thinking and problem-solving abilities.

Applied Agile practices and mindsets when working in Agile teams.

The study undertaken

Graduate Diploma of XXX XXX $X

XXX XXX $X

XXX and XXX $X

Graduate Diploma of XXX XXX $X

Master of XXX XXX $X

20XX Financial year total course cost $X

20XX Financial year total course cost $X

20XX Financial year total course cost $X

20XX Financial year total course cost $X

The total course cost $XX.

You have demonstrated how these courses have a nexus to the employment activities you were undertaking while you were working for your previous employer while studying.

Support from your employer

Your employer supported your aim to complete the course and this is evidenced by an email dated XX XX 20XX. You have supplied an email from the XX Principal XX XX which states: 'I can confirm the course work is related to the roles and duties when you were involved in the XXX XXX task at XX.'

You paid for the course fees using the FEE-Higher Education Loan Program (HELP).

You did not receive any government allowance to study (including Abstudy, Austudy or Youth Allowance).

You did not receive a taxable bonded scholarship.

You completed the course by XX 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).