| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012513196733
Disclaimer
You cannot rely on the rulings in the Register of private binding rulings in your tax affairs. You can only rely on a private ruling that we have given to you or to someone acting on your behalf.
The Register of private binding rulings is a public record of private rulings issued by the ATO. The register is an historical record of rulings, and we do not update it to reflect changes in the law or our policies.
The rulings in the register have been edited and may not contain all the factual details relevant to each decision. Do not use the register to predict ATO policy or decisions.
Ruling
Subject: WRE - self-education
Question
Are you entitled to claim a deduction for the credit card processing fee that you incurred when making a voluntary repayment of your HECS-HELP debt?
Answer
No.
This ruling applies for the following period:
Year ended 30 June 2014
The scheme commenced on
1 July 2013
Relevant facts and circumstances
You made a voluntary payment to your HECS-HELP debt on your credit card.
You were charged credit card processing fees for the repayment.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
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.
The deductibility of self education expenses falls for consideration under section 8-1 of the ITAA 1997. However there is a specific section that deals with the deductibility of HECS-HELP fees.
You will be obliged to make payments (either as voluntary payments or as part of your income tax assessment) under HECS-HELP. Paragraph 26-20(1)(cb) of the ITAA 1997 specifically prevents a deduction for payments made to reduce a debt to the Commonwealth under Chapter 4 of the HESA 2003.
In your case, even though you incurred the credit card fee as a result of repaying your HECS-HELP debt the expenses is only deductible to the extent that your HECS HELP debt was deductible. As paragraph 26-20(1)(cb) of the ITAA 1997 specifically prevents a deduction for this repayment you are not eligible to claim a deduction for the credit card processing fee under section 8-1 of the ITAA 1997.