Edited version of private advice

Authorisation Number: 1052192140168

Date of advice: 13 November 2023

Ruling

Subject: Self-education expenses

Question

Are you entitled to a deduction for course fees incurred in association with studying a Graduate Diploma of Computer Science at a university for your role as a Software Engineer under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

Yes.

Draft Taxation Ruling TR 2023/D1 Income tax: deductibility of self-education expenses incurred by an individual states that self-education expenses are deductible under section 8-1 of the ITAA 1997 where they have a relevant connection to the taxpayer's current income-earning activities. Self-education expenses are deductible if your income-earning activities are based on the exercise of a skill, or some specific knowledge and the self-education enables you to maintain or improve that skill or knowledge. Based on the information provided to the Commissioner your self-education expenses are deductible as it is accepted the study meets the requirements detailed in TR 2023/D1 and no exclusions apply.

This ruling applies for the following period:

Year ended XX XXXX 20YY

The scheme commenced on:

XX XXXX 20YY

Relevant facts and circumstances

You completed an IT related course on XX XXXX 20YY.

Subsequent to this you gained employment with a company as a Software Engineer in XXXX 20YY.

You began studying a Graduate Diploma of Computer Science with a university approximately a year after commencing employment.

Your employer supplied a letter affirming that the course assisted you in your current work activities.

You incurred and paid course fees out of savings.

The course fees were not paid through HECS-HELP.

You completed your Graduate Diploma of Computer Science in XXXX 20YY.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1