Private ruling: Self-education
Published: November 2014
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a deduction for text books and stationery? | A1: Yes. | Q2: Are you entitled to a deduction for course fees? | A2: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1 | 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. Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business, states self-education expenses are allowable as a deduction if a taxpayer's current income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of the self-education enables the taxpayer to maintain or improve that skill or knowledge. | Detailed Reasoning - Text books and stationery: In your case, it is considered that the course will increase your skills and knowledge in your current income earning activity. Therefore, you are entitled to a deduction for the cost of text books and stationery. | Detailed Reasoning - Course fees: TR 98/9 explains at paragraph 24 that HECS fees payable for courses supported by the Commonwealth government under HECS are not an allowable deduction as section 26-20 of the ITAA 1997 prevents a deduction for HECS payments. This is so whether they are paid up front as a discounted amount, or deferred for payment at a later date in an annual income tax assessment. As the course fees you incurred were supported by the Commonwealth government, you are not entitled to a deduction.

Relevant facts: You are undertaking a Bachelor. | You are employed in the field you are studying. | The course fees are Commonwealth Supported. | You also incur costs for text books and stationery.