Taxation Ruling

IT 317

Education expenses - school fees paid in advance

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FOI status:

FACTS

A taxpayer indicated that he intended to send his daughters to a private school for their secondary education, the first daughter commencing there in 1976. He proposed to make advance payments to the private school, for credit against his account, in the years prior to the attendance of his daughters at the school. He asked whether the advance payments would be deductible in the year in which they were paid.

RULING

2. In deciding against the taxpayer, the view was taken that the expenses deductible in terms of section 82J are those in respect of which, at the time the payment is made, the taxpayer is faced with an ascertained liability which has arisen for or in connection with the full-time education of the student. In the case of school fees, this would not normally occur until the year in which the student commences to attend the particular school in respect of which the fees are paid.

3. This decision follows Taxation Ruling IT 315 concerning payments to a trust fund for the future education of a child.

COMMISSIONER OF TAXATION
4 March 1974

References

ATO references:
NO 73/3071 F13
BO SYD AF 1400/J 5

Date original memo issued:
04.03.74

Related Rulings/Determinations:

IT 315

Subject References:
CONCESSIONAL REBATES
EDUCATION EXPENSES
SCHOOL FEES PAID IN ADVANCE

Legislative References:
82J
159T