Private ruling: FEE-HELP
Published: January 2012
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Does utilising the FEE-HELP system to pay course fees preclude you from claiming a deduction for the fees as a self education expense? | A1: No.

Relevant facts and circumstances: You are currently completing a post graduate degree. The course is directly related to your work. You began studying this course part time, and intend to continue this study part-time over the next few years. The course fees were paid under the FEE-HELP system.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 and | Income Tax Assessment Act 1997 section 26-20.

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income. Section 26-20 of the ITAA 1997 outlines the availability of deductions in respect of certain student assistant programs. There is nothing in this section or any other taxation provision that precludes a deduction for course fees incurred where a taxpayer has obtained a loan for all or part of the fees for the course under FEE-HELP. In your case you have stated that your study is directly related to your work. Therefore, the course fees are deductible in the year in which they were incurred even though you have obtained a loan for all or part of those fees under FEE-HELP. | Detailed Reasoning - Additional information: FEE-HELP debts are loaded onto your account when they are reported to the Australian Taxation Office by the Department of Education, Employment and Workplace Relations. If the period of study is from: 1 January to 30 June (first half of the year), your debt for that semester is usually reported and loaded in November in the same year of study 1 July to 31 December (second half of the year), your debt for that semester is usually reported and loaded in May, following the year of study If you are entitled to a deduction for course fees, you should use the statements from your study provider to determine the amount you are entitled to claim in a particular financial year.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.