Edited version of private advice

Authorisation Number: 1052329061043

Date of advice: 7 November 2024

Ruling

Subject: Deductions - self education

Question 1

Are you entitled to a deduction for annual subscriptions to the xx online learning platform and xx xx (xx) application and laptop decline in value costs incurred while undertaking the study course as self-education expenses under section 8-1 of the ITAA 1997?

Answer 1

Yes.

Question 2

Are you entitled to a deduction for internet charge costs incurred while undertaking the study course as self-education expenses under section 8-1 of the ITAA 1997?

Answer 2

Yes.

Question 3

Are you entitled to a deduction for costs incurred for travel between your accommodation and the campus while undertaking the study course as self-education expenses under section 8-1 of the ITAA 1997?

Answer 3

Yes.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You are an Australian resident for taxation purposes.

You are employed as a xxxx with the xxxx.

You commenced this position on a permanent full-time basis in xx 20xx.

Your key responsibilities of your role include:

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

You commenced a xxxx with xxxx in 20xx.

You ceased study with this university as the course fees were prohibitive and the course ineligible for HECS-HELP.

You enrolled in a xxxx xxxx (xx) at xxxx full time and commenced the study course in trimester 1 on xx xx 20xx.

You are in receipt of HECS-HELP.

You expect to complete the study course at the end of 20xx.

You employer has approved assistance through xxxx xxxx (xx) to claim reimbursement for up to 50 per cent for your study and research expenses, subject to successful completion of the study course.

The study requires you to complete the following courses:

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx

•                     xxxx (trimester 1 and trimester 2)

•                     xxxx (trimester 1 and trimester 2)

You will continue to work full time for your employer while undertaking the study; taking study leave as approved under the xxxx xxxx.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

Income Tax Assessment Act 1997 subdivision 40-B

Reasons for decision

Self-education expenses incurred in attending educational institutions are deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) where the expenses have the necessary connection in gaining or producing the taxpayer's assessable income.

The expenses you will incur to complete the course of study 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 current income earning activities. To claim a deduction for a work-related expense, you must have spent the money yourself and weren't reimbursed.

You are entitled to claim a deduction for your self-education expenses, in the year the expense was incurred.

Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual sets out the rules and circumstances under which self-education expenses are allowable as a deduction.

Question 1

Are you entitled to a deduction for annual subscriptions to the xx online learning platform and xx xx (xx) application and laptop decline in value costs incurred while undertaking the study course as self-education expenses under section 8-1 of the ITAA 1997?

Self-education expenses incurred for digital subscription products are deductible.

If the subject of the self-education enables you to maintain or improve skills or knowledge or is likely to lead to an increase in income from your current income-earning activity, you can deduct an amount for the decline in value of the depreciating asset you use, or have installed ready for use, for self-education purposes. You must reduce your deduction by the extent to which you use the asset for other than a taxable purpose. Refer to example 29 of TR 2024/3.

You can deduct an amount for the decline in value of an asset such as a laptop computer if the cost is more than $300. See paragraphs 158 to 162 of TR 2024/3 for more on decline in value.

Application to your circumstances

In your case, it is accepted that the course will maintain or further develop your skills and knowledge required for you to perform your employment duties and expand your knowledge in areas relevant to your employment position. Consequently, the expenses you incur for digital subscription products are deductible.

Question 2

Are you entitled to a deduction for internet charge costs incurred while undertaking the study course as self-education expenses under section 8-1 of the ITAA 1997?

The study-related portion of the cost of internet charge costs are deductible to the extent these costs relate to the self-education. The study-related percentage of internet costs can be established by a pattern of use over a 4-week representative period. The pattern of use percentage is then applied on a reasonable basis to the yearly costs, notice that leave periods are excluded (PS LA 2001/6).

Question 3

Are you entitled to a deduction for costs incurred for travel between your accommodation and the campus while undertaking the study course as self-education expenses under section 8-1 of the ITAA 1997?

Detailed reasoning

Travel expenses such as costs for travelling to and from a place of education are claimable. Only those expenses directly attributable to the self-education incurred in gaining or producing your assessable income are allowable.

The Commissioner takes the view that, where the requirements for deductibility are otherwise met, the transport costs (e.g., fares) incurred in travelling between: (a) home and an educational institution (including a library for research) and back again; and (b) the place of work and the educational institution and back again, qualify as self-education expenses.

Application to your circumstances

In your case, it is accepted that the fares to travel from your home to the university campus and home again are deductible.