Private ruling: Self-education expenses
Published: February 2013
Ruling period: Year ended 30 June 2009 | Year ended 30 June 2010 | Year ended 30 June 2011 | Year ended 30 June 2012
Date scheme commenced: 1 July 2008

Ruling: Q1: Are you entitled to a deduction for your course fees as a self-education expense? | A1: No.

Relevant facts and circumstances: You commenced a degree course at a university. You worked full time and your studies directly related to your employment. Your subjects were Commonwealth supported and included a student contribution amount. Your fees were paid upfront with a discount.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1 | Income Tax Assessment Act 1997 Subsection 26-20(1)

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, relate to the earning of exempt income or a provision of the ITAA 1997 prevents it. Taxation Ruling TR 98/9 discusses the circumstances under which self-education expenses are allowable as a deduction. TR 98/9 explains at paragraph 24 that a student contribution amount or debt repayment amount specified in section 26-20 of the ITAA 1997 is not an allowable deduction under section 8-1 of the ITAA 1997. Subsection 26-20(1) of the ITAA 1997 prevents a deduction for certain assistance provided to students. You cannot claim a deduction for: · a student contribution amount within the meaning of the Higher Education Support Act 2003 paid to a higher education provider, or · a payment made to reduce a debt to the Commonwealth under Chapter 4 of that Act This is whether the fees are paid up front as a discounted amount, or deferred for payment at a later date in an annual income tax assessment. In your case, you studied Commonwealth supported subjects with a student contribution amount. Subsection 26-20(1) of the ITAA 1997 denies a deduction for these expenses. Therefore you are not entitled to claim a deduction in respect of the course fees.

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