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Edited version of your written advice
Authorisation Number: 1012723398365
Ruling
Subject: Self-education
Question 1
Are you entitled to a deduction for text books and stationery?
Answer:
Yes.
Question 2
Are you entitled to a deduction for course fees?
Answer:
No.
This ruling applies for the following period
Year ended 30 June 2014
Year ended 30 June 2015
The scheme commenced on
1 July 2013
Relevant facts
You are undertaking a Bachelor.
You are employed in the field you are studying.
The course fees are Commonwealth Supported.
You also incur costs for text books and stationery.
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.
Taxation Ruling 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.
Text books and stationery
In your case, it is considered that the course will increase your skills and knowledge in your current income earning activity. Therefore, you are entitled to a deduction for the cost of text books and stationery.
Course fees
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 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 course fees you incurred were supported by the Commonwealth government, you are not entitled to a deduction.