| Disclaimer This edited version has been archived due to the length of time since original publication.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 written advice
Authorisation Number: 1051376756401
Date of advice: 20 June 2018
Ruling
Subject: Self-Education Expenses
Question 1
Are your self-education expenses for your Bachelor’s Degree xxxx allowable deductions?
Answer
Yes
Section 8-1 of the Income Tax Assessment Act 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 TR98/9 discusses the circumstances under which self-education expenses are allowable as a deduction. A deduction is allowable for self-education expenses 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 (Federal Commissioner of Taxation v. Finn (1961) 106 CLR 60, (1961) 12 ATD 348.
It is considered that the Bachelor degree of xxxx sufficiently relates to and improves upon the skills or knowledge used in your current income earning activity. Therefore, you are entitled to a deduction for the course fees (less your employer’s 75% contribution), student fees, stationery, text books, laptop, printer and home office costs relevant to your studies. Information on self-education expenses including how to calculate your claim can be found on our website ato.gov.au and entering quick code QC31970 into the search bar at the top right of the page.
This ruling applies for the following periods:
Period ending 30 June 20XX
Period ending 30 June 20XX
Period ending 30 June 20XX
Period ending 30 June 20XX
It is noted that you asked for the private ruling to apply for the 20XX-XX income year and onwards for up to 6 years. The Commissioner does not rule for indefinite or extended periods as there may be changes to the facts of the arrangement or the law in question. Also, a public ruling may issue which affects the private ruling. Therefore, we have only ruled for the 20XX-XX to 20XX-XX income years.
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You work full time at xxxx.
You have worked at xxxx years.
You work in IT as a Functional Analyst in the Enterprise Division providing solution design and reporting to government agencies. You analyse requirements and system functionality to deliver solutions for clients. Your current work duties include solution design, analysis and configuration of a whole of government system which provides grants and reporting solutions to government agencies. The system is powered by SAP and Tableau software reporting.
Your employer supports you and has approved agreeing to pay xxxx% of your fees. This will be paid in arrears after you have passed each unit.
You have enrolled to study xxxx online study.
You expect to complete course in xxxx years studying part time.
The course consists of xxxx.
You have set up your home office for your studies and when you work from home. You have purchased a laptop, printer, monitor stand, desk, chair and other office supplies.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1