Private ruling: Self-education expenses
Published: November 2020
Ruling period: Year ending 30 June 2020 | Year ending 30 June 2021 | Year ending 30 June 2022 | Year ending 30 June 2023 | Year ending 30 June 2024
Date scheme commenced: 1 July 2019

Ruling: Q1: Are the course fees incurred in connection with a self-education course an allowable deduction, to the extent that the course fees have not been reimbursed by your employer? | A1: Yes. Yes. Your self-education expenses are deductible, as it is accepted the study meets the requirements detailed in Taxation Ruling TR 98/9. Further information about self-education expenses can be found by searching "QC 31970" on www.ato.gov.au However, you are only entitled to a deduction for the expenses that you have incurred. That is, you must reduce the expenses by the amount of any reimbursement from your employer. FEE-HELP You have obtained financial assistance for the shortfall between the amount of tuition assistance your employer has provided for the course fees and the total cost of the course fees under the full-fee paying students Higher Education Loan Programme (FEE-HELP). Whilst this is the case, ATO ID 2005/26 states that even though a taxpayer has obtained a loan for all or part of the fees for the course under FEE-HELP, this does not preclude them from claiming a deduction for the expenses incurred in relation to the course, so long as the course is directly related to their income earning activities. As such you are still able to claim a deduction for the amount of the loan obtained under FEE-HELP.

Relevant facts and circumstances: You are a currently employed on a full-time basis. You have chosen to undertake a self-education course, of which all of the individual subjects all relate to your current employment. You have also chosen to undertake the self-education course in order to improve and maintain the skills required in your current employment role. Your employer will provide you with tuition assistance for the course fees, which has been approved at two stages of management. You will be deferring the component not covered by the tuition assistance program to FEE-HELP, and you are not receiving any government assistance (HECS). The relevant expenses you will incur as part of the course are: - travel to and within the Australian city where the course is being conducted; - accommodation in the Australian city where the course is being conducted; - food whilst travelling to and from the Australian city where the course is being conducted and whilst staying in that city; - course fees; - stationary; - desk.

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