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Edited version of private advice
Authorisation Number: 1052231981238
Date of advice: 15 March 2024
Ruling
Subject: Income Tax: Self-education
Question
Are you entitled to a deduction for the self-education expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs of undertaking a university course?
Answer
Yes.
Your self-education expenses are deductible under section 8-1 of the ITAA 1997. The expenses you'll incur to complete the university course will allow you to improve the knowledge and skills required to carry out your current income-earning activities and are likely to lead to an increase in income from your current employment. The course has the relevant connection to your past and current income earning activities. To claim a deduction for a work-related expense, you must have spent the money yourself and weren't reimbursed. Further information about self-education expenses can be found in Taxation Ruling TR 2023/D1 Income tax: deductibility of self-education expenses incurred by an individual.
This ruling applies for the following periods:
Financial year ended 30 June 20XX
Financial year ended 30 June 20XX
Financial year ended 30 June 20XX
Financial year ending 30 June 20XX
Financial year ending 30 June 20XX
Financial year ending 30 June 20XX
The scheme commenced on:
11 September 20XX
Relevant facts and circumstances
On XXXX, you commenced employment in Role 1 with Employer A.
On XXXX you commenced a university course.
On XXXX, you were promoted to Role 2 with Employer A.
On XXXX, you were promoted to Role 3 with Employer A.
On XXXX, you were promoted to Role 4 with Employer A.
For the university course, you are required to complete a variety of subjects:
The course was undertaken to improve skills in all your past and present roles with Employer A. It also enabled you to complete professional development, allowed you to progress your career, and enabled you to obtain promotions with Employer A.
Your employer supported your aim to complete the university course. They provided a letter of support stating your pursuit of the university degree directly contributes to maintaining and improving the specific skills and knowledge required in your current Role 4, as well as your previous roles and potential future roles.
The total cost of the course is approximately $XX.
You are paying for the course fees using the Higher Education Loan Program (HELP).
You are not receiving any government allowance to study (including Abstudy, Austudy or Youth Allowance).
You are not receiving a taxable bonded scholarship.
Your estimated course completion date is XXXX.
Upon completion of your university studies, you may seek a more senior management position within Employer A.
Relevant legislative provisions
8-1 of the Income Tax Assessment Act 1997