Private ruling: Deductions
Date of advice: 13 March 2025
Published: 19 May 2025
Ruling period: Year ended 30 June 20YY | Year ended 30 June 20YY | Year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Are you entitled to a deduction for course fees incurred in association with completing a Master's degree course under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. It is accepted that undertaking the course will enable you to maintain and improve the skills and knowledge that you exercise in carrying out your income earning activities. You can claim the self-education course fee expense at the time you incurred the expense. This can be when you pay for the course fees, if you pay the fees up front, or when the debt becomes a legal obligation you need to pay back, for example on the census date. You cannot claim a deduction for repaying the loan, either as part of your income tax assessment or as voluntary repayments.

Relevant facts and circumstances: You have been a registered professional for several years, carrying on a professional practice. To achieve certification, you have undertaken study of a Masters' degree at an Australian University that relates to your work. The Australian University is a higher education provider. However, the Masters' degree is a full fee-paying course. All course fees have been paid by using Higher Education Loan Program (HELP). You have not made any personal student contribution payments towards this degree.

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