Edited version of private advice

Authorisation Number: 1051799908149

Date of advice: 1 February 2021

Ruling

Subject: Self-education expenses

Question

Are expenses incurred in studying three courses, Bachelor of Computer Science, Special Topics in Computer Science and Certified Information Systems Security Professional, allowable deductions?

Answer

Yes.

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 earning exempt income.

Based on the facts and analysis of your circumstances, the courses maintain or improve skills, capabilities or knowledge you need in your previous and current income-earning activities. Therefore, the expenses incurred are considered allowable deductions under Section 8-1 of the ITAA 1997.

As the general tests under section 8-1 are met, certain types of expenses related to your self-education are allowable such as course fees, student services and amenities fees and textbooks. Further information can be found by entering Quick Code reference QC 61642 into the search function of our website ato.gov.au.

This ruling applies for the following periods:

Year ending 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You are currently studying a Bachelor of Computer Science (BCS) with Institution A. You commenced the BCS on XX/XX/XXXX and expect to complete the course on XX/XX/XXXX.

You have completed six subjects.

You have incurred expenses for unit fees, student services and amenities fees and course material.

Five BCS subjects remain to be completed.

You studied Certified Information Systems Security Professional (CISSP) through Institution B. You commenced the course on XX/XX/XXXX and completed the course on XX/XX/XXXX. You incurred expenses for a skillset study guide, examination fee and maintenance fee.

You studied Special Topics in Computer Science (STCS) COMP2710 at Institution C. You commenced the course on XX/XX/XXXX and completed the course on XX/XX/XXXX. You incurred expenses for course fee and student services and amenities fee.

You are currently employed full-time as an IT Security Specialist with Employer A. You have been in this role since XX/XX/XXXX. In your role you are required to use computer science skills such as cybersecurity, programming and networking.

You were previously employed as a Security Operations Centre (SOC) Analyst with Employer B from XX/XXXX to XX/XXXX. Your duties included writing code to detect suspicious activity, triaging security incidents, writing programs to automate analyst tasks, parsing big data to detect malicious actors, communicating technical information to end users, managers and team members and training new analysts.

The roles have very similar duties.

By undertaking the courses, you enhanced the following skills and knowledge used in your work activities:

•         Software development

•         Security operations/Incident Investigation

•         Vulnerability Assessment

•         Automation

•         System Administration.

Your employers encourage you to undertake the BCS course. It is a requirement which is assessed during your performance review. The BCS included a work placement. Employer B helped you complete the work-place learning component.

You are not receiving Austudy, ABSTUDY or Youth Allowance and you have not received a taxable bonded scholarship to study any of the courses. You are not paying the course fees using the Higher Education Loan Program. You have not received an allowance and you are not being reimbursed by anyone for expenses incurred in relation to the courses.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1