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Edited version of private advice
Authorisation Number: 1051942982388
Date of advice: 8 February 2022
Ruling
Subject: Self education expenses
Question
Are the expenses associated with your Bachelor of Nursing deductible as per section 8-1 of the Income Tax Assessment Act 1997?
Answer
No.
This private ruling applies for the following periods:
Period ended 30 June 20XX
Period ended 30 June 20XX
Period ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are studying a Bachelor of Nursing.
You commenced employment in aged care as an Assistant in Nursing.
You have paid for your course fess under the Higher Education Loan Program (HELP) system.
You have received credits from your employment towards your Academic record.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1
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 or a provision prevents you from deducting it.
Course fees
Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business discusses when course or tuition fees are allowable as a deduction.
You cannot deduct a student contribution amount paid to a higher education provider under the Higher Education Support Act 2003: paragraph 26-20(1)(ca) of the ITAA 1997. Such payments are made by a student to cover the cost of a course of study at a tertiary educational institution. Repayment amounts for a Higher Education Loan Program (HELP) debt or a Student Financial Supplement Scheme (SFSS) debt are also not deductible: paragraph 26-20(1)(cb) and paragraph 26-20(1)(d) of the ITAA 1997.
When course fees are paid via the HECS HELP method you cannot claim the course fees for your studies as a self-education deduction under section 8-1 of the ITAA 1997 as it is specifically denied under section 26-20 of the ITAA 1997.
Textbooks and travel
Whilst studying a Bachelor of Nursing you became employed as an Assistant in Nursing in aged case on the on XXXX during semester XXXX and you have received credits towards your degree from this employment and the duties performed.
Paragraph 14 of Taxation Ruling TR 98/9 states:
If the study of a subject of self-education objectively leads to, or is likely to lead to, an increase in a taxpayer's income from his or her current income-earning activities in the future, the self-education expenses are allowable as a deduction.
Once you complete your study you will be a qualified nurse and you will have an increase in your income from your current income earning activities.
As the study precedes your employment start date you will only be able to claim expenses related to textbooks and travel for your Bachelor of Nursing from that date you commenced employment the aged care facility.