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Edited version of private advice
Authorisation Number: 1012680552690
Ruling
Subject: Self-education
Question
Are you entitled to a deduction for self-education?
Answer:
No.
This ruling applies for the following periods
Year ended 30 June 2013
Year ended 30 June 2014
The scheme commenced on
1 July 2012
Relevant facts
You are undertaking a Bachelor degree.
You incurred course fees in January and June 20XX and January and March 20YY which were supported by the Commonwealth government.
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, or relate to the earning of exempt income.
TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business states self-education expenses are allowable as a deduction if a taxpayer's current income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of the self-education enables the taxpayer to maintain or improve that skill or knowledge.
Taxation Ruling TR 98/9 explains at paragraph 24 that HECS fees payable for courses supported by the Commonwealth government under HECS are not an allowable deduction under section 8-1 of the ITAA 1997 as section 26-20 of the ITAA 1997 prevents a deduction for HECS payments. This is so whether they are paid up front as a discounted amount, or deferred for payment at a later date in an annual income tax assessment.
As the fees you incurred were supported by the Commonwealth government, you are not entitled to a deduction.