Edited version of private advice

Authorisation Number: 1052350547561

Date of advice: 16 January 2025

Ruling

Subject: Work related expenses - self-education.

Question 1

Can you claim the course fee to study the Master of Applied Finance in the year ended 30 June 20XX?

Answer 1

Yes. Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual states 'Where your income-earning activities are based on the exercise of a skill or having specific knowledge, self-education expenses incurred to maintain or improve that knowledge or your ability to exercise those skills are deductible.'

Self-education expenses are deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) where they have a relevant connection to the taxpayer's current income-earning activities. Self-education expenses are deductible where they maintain or increase the specific knowledge required in your current position and enable you to carry out your duties more effectively. Subject to the general tests under section 8-1 being met, the course or tuition fees of attending an educational institution related to self-education are allowable.

In your situation, the course of study can be objectively seen as being undertaken to maintain or increase the specific knowledge required in your current position and to carry out your duties more effectively, you became liable of these expenses in the 20XX financial year, and you obtained a loan for all or part of your fees under FEE-HELP as a full - fee student.

Accordingly, you are entitled to a deduction under section 8-1 of the ITAA 1997 for expenses paid for the self- education expenses incurred.

It should be noted that any repayments of a FEE-HELP debt are not deductible.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You were employed as an XX on a full-time basis.

You commenced studying in Master of XX in the year ended 30 June 20XX.

You incurred fee expenses while undertaking the study.

You received a FEE-HELP loan to undertake this course of study.

You were a full fee paying student.

You paid the fees incurred on census date.

You completed the subjects in the year ended 30 June 20XX.

You were not reimbursed or received an allowance by anyone for expenses incurred in relation to this study.

You have provided supporting documentation including your XX role Description, employment letter from your employer and details of the subjects you were studying for that role.

You have provided a list of subjects you completed in Master of XX.

You explained the connection of the courses to your income earning activities at the time the expenses were incurred and improving your knowledge or skills in your role.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1