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Edited version of private advice
Authorisation Number: 1052270208503
Date of advice: 9 July 2024
Ruling
Subject: Work related self-education expenses
Question 1
Are you entitled to a deduction for the deposit and tuition fees incurred in studying the Master of Law (LLM) at XX University in Country B?
Answer
Yes.
Your deposit and tuition fees meet the requirements under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) and Draft Taxation Ruling TR 2023/D1 Income tax: deductibility of self-education expenses incurred by an individual.
Question 2
Will the deposit and tuition fees paid for studying the Master of Law (LLM) at XX University in Country B, be claimable in the financial year that the invoice is paid?
Answer
Yes.
Your deposit and tuition fees will be claimable in the financial year that the invoice is paid.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
In XX 20XX, you were admitted as a Lawyer in Country A.
In XX 20XX, you commenced employment with XX (Company A) as a Lawyer and continue to be employed by them.
In XX 20XX, you commenced higher duties as an Acting Senior Lawyer.
Your responsibilities as an Acting Senior Lawyer are that you action more complex cases, have more independence and less supervision.
You supervise XX, which you did not do as a Lawyer.
In XX 20XX, you were promoted to Senior Lawyer and your income increased.
On XX XX 20XX, you paid a deposit in full to undertake a Master of Law (LLM) at XX University in Country B.
You will be in Country B on a student visa.
Semester 1 runs until late XX 20XX or early XX 20XX.
Semester 2 runs from XX 20XX to XX 20XX.
You plan to start the course from XX 20XX and complete it in XX 20XX.
While completing semester 1, you plan to take leave, and then Leave Without Pay.
Between the break in semesters, you plan to return to Country A to work at Company A.
Your direct manager has advised that they support you working in the break, provided there is work on hand related to your responsibilities.
While completing semester 2, you plan to take annual leave, and then Leave Without Pay.
You stated that you would pay your first semester of tuition fees in the 20XX financial year.
You are taking subjects which are specifically related to the areas of law in which you practice:
• Administrative Law
• Introduction to Country B Constitutional Law
• Comparative Constitutional Law
• Politics of litigation and litigation of politics
• Slavery, Abolition and the Constitution
• Transitional Justice in the 21st century
• Energy Law and Policy
• The Law and Policy of the Energy Transition
You have advised the course of study:
• is directly related to your income earning activities as a Senior Lawyer.
• will improve your knowledge of your current role.
The purpose of undertaking the course is to obtain a higher level of remuneration with your existing employer.
The course will improve your legal knowledge and the technical skills you apply in your current role.
You are a resident of Country A for tax purposes.
Your study was not funded by your employer, however, they allowed you to take leave to attend the course.
On completion of the course, you intend to return to your place of employment.
You are not receiving an allowance for the expenses incurred to undertake this study.
Relevant legislative provisions
Income Tax Assessment 1997 section 8-1