Private ruling: self-education expenses
Published: September 2011
Ruling period: Year ended 30 June 2011 | Year ended 30 June 2012 | Year ended 30 June 2013
Date scheme commenced: 1 July 2010

Ruling: Q1: Are you entitled to a deduction for your course fees incurred to study a bachelor of accounting? | A1: Yes.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are currently undertaking a bachelor of accounting degree. At the same time you began studying, you also commenced work for a tax agent, for which you were made a director. You contend that your studies are directly related to your job and will further advance your career with the company. You are utilising the FEE HELP system to pay your fees.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1.

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, or relate to the earning of exempt income. Taxation Ruling TR 98/9 discusses the circumstances in which self-education expenses are allowable as a deduction including where a taxpayer's current income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of self-education enables the taxpayer to maintain or improve that skill or knowledge. Similarly, if the study of a subject of self-education objectively leads to, or is likely to lead to an increase in a taxpayer's income from his or her current income earning activities in the future, a deduction is allowable. In your case you are studying a bachelor of accounting degree. It is accepted that this course will maintain and enhance the skills that are required in the performance of your current employment activities at a tax agent firm. Consequently, as there is the necessary connection between the course and your current income-earning activities you are entitled to claim a deduction for your self-education expenses under section 8-1 of the ITAA 1997. | Detailed Reasoning - Additional information: FEE-HELP Although you have taken a loan under FEE-HELP, this does not preclude you from claiming a deduction for the expenses incurred in relation to this course. However, it should be noted that you are not allowed a deduction for the repayment of FEE-HELP debt.

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.