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Edited version of your private ruling
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Ruling
Subject: Deduction - self-education - tuition fees
Question 1
Are you entitled to a deduction for the course fees incurred in undertaking a Bachelor degree in the 2006-07, 2007-08 and 2009-10 financial years?
Answer
No
This ruling applies for the following periods
Year ended 30 June 2007
Year ended 30 June 2008
Year ended 30 June 2010
The scheme commences on
1 July 2006
Relevant facts and circumstances
During the 2006-07, 2007-08 and 2009-10 financial years, you were a full-time student studying a degree at a university.
At the time of undertaking your studies, you were a permanent resident of Australia but you were not a citizen of Australia.
You were granted a Commonwealth supported place at the university in undertaking your studies.
You paid the fees up-front for each semester in each year. You did not receive a discount.
As you were not a citizen of Australia, you were not eligible for the Higher Education Contribution Scheme-Higher Education Loan Program (HECS-HELP).
You provided fee statements for each year which show the fee type as being 'Commonwealth Student Contribution Amount'.
You were in receipt of Austudy during the 2006-07, 2007-08 and 2009-10 financial years.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1 and
Income Tax Assessment Act 1997 section 26-20.
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income. A deduction is also not allowable if another provision of the Act prevents it.
Section 26-20 of the ITAA 1997 states that you cannot deduct under this Act:
(ca) a student contribution amount within the meaning of the Higher Education Support Act 2003 paid to a higher education provider (within the meaning of that Act), or
(cb) a payment made to reduce a debt to the Commonwealth under Chapter 4 of that Act, or
d) a payment made to reduce a debt to the Commonwealth, or to a participating corporation, under Chapter 2B of the Social Security Act 1991 or Part 4A of the Student Assistance Act 1973.
Documentation provided by you shows that the fees paid by you were the Commonwealth student contribution amount which is the amount paid to the education provider by students in Commonwealth supported places, commonly referred to as the Higher Education Contribution Scheme or HECS. HECS-HELP is the Higher Education Loan Program whereby students are able to defer their HECS debt until a later date. Therefore, in accordance with paragraph 26-20(ca) of the ITAA 1997, you are not entitled to a deduction for the fees paid by you each semester.