Edited version of private advice

Authorisation Number: 1052394323707

Date of advice: 09 May 2025

Ruling

Subject: Deductions - self education expenses

Question 1

Are the course fees and associated self-education expenses you incurred in relation to your degree at the University deductible under section 8-1 of the Income Tax Assessment Act (ITAA) 1997?

Answer 1

Yes.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You are an XX tax resident employed as an XX at the XX XX, XX, with a commencement date in June 20XX.

The role involves providing high-level executive and legal administrative support, requiring skills in legal research, statutory interpretation, legal correspondence drafting and policy analysis.

Prior to your current employment you were employed by other firms at different times within the study period:

1. You worked as a XX with the XX during the periods of XX 20XX - XX 20XX, and XX, 20XX - XX, 20XX.

2. You worked as a XX for XX from XX, 20XX - XX, 20XX.

You did not retain copies of the job descriptions for the role of XX. Both employments were facilitated via a recruiter. However, they outlined the employment duties, which included:

•                     Writing bills (interpreting the legal work done by the billing lawyers and translating it into an invoice readable by a client and in accordance with contracts)

•                     Preparing indexes and briefs to barristers

•                     Proofreading and amending letters and advice

•                     Responding to client queries on behalf of lawyers, including drafting legal content for lawyer sign-off

•                     Answering new client inquiry calls and allocating new matters to the legal specialists or team members with skills relating to the client query

•                     Document review for firm confidential matters

You commenced the course in 20XX and expected to complete the studies in 20XX.

While performing the role of XX and pursuing further studies, you were able to progress more quickly in the role, taking on additional responsibilities that aligned with an increase in salary.

There was no explicit requirement to secure the position of XX. However, you are currently performing small amounts of extra work with sign-off from a more senior employee. This legal work falls outside the typical job description of graduate lawyers and paralegals.

You undertook a XX Doctor degree at the University of XX to enhance the knowledge and skill set in the current role. This degree specifically improved your ability to interpret legal frameworks, prepare legal documents, and contribute to high-level decision-making within the office.

You incurred fees that have been added to the xx account and paid xx, directly identified at each transaction, as follows:

•                     XX XX XXXX - $ (added to x): This was incurred when you were employed as a XX with XX.

•                     XX XX XXXX - $ (paid x): This was incurred when you were employed as a XX with XX.

•                     XX XX XXXX - $ (added to x): This was incurred when you were employed as a XX with XX.

•                     XX XX XXXX - $ (added to x): This was incurred when you were employed as a XX with XX.

•                     XX XX XXXX - $ (added to x): This was incurred when you were was employed as an XX with XX.

The 20XX tax return has already been lodged, while the 20XX tax return is yet to be lodged. You intend to include the relevant self-education expenses in the 20XX tax return.

Regarding the self-education expenses already claimed in the Income Tax Return for the year ending 30 June 20XX, amounting to $XX, these expenses relate to book purchases that were directly relevant to the matters while working on at the firm. Proof of supporting documents has been provided.

The prerequisite module XX, which students must enrol in during their first term according to the XX handbook, is integrated as a sub-course within other courses. It will not appear on academic transcripts but is incorporated throughout the prerequisite courses.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1