Are you entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the tuition fees you incurred in studying your course?
Yes. Your self-education expenses are deductible under section 8-1 of the ITAA 1997. The expenses you incurred in undertaking the course will allow you to improve the knowledge and skills required to carry out your current income-earning activities. Further information about self-education expenses can be found in Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual. This ruling applies for the following period : Year ended 30 June 20XX The scheme commenced on: 1 July 20XX
You were employed at Company A from XX/XX/20XX. In XX/20XX, you commenced full time employment at Company A. During your employment, you worked in various roles. On XX/XX/20XX, you were accepted to study course an educational institution in Country X. On XX/XX/20XX, you were provided with the terms and conditions of your employment at Company A for your employment position commencing from XX/XX/20XX. On XX/XX/20XX, your employer sent you a written letter granting you a leave of absence allowing you to undertake your course whilst remaining employed. On XX/XX/20XX you commenced a formal leave of absence from Company A. On XX/XX/20XX, you received an invoice for your tuition fees for the course. On XX/XX/20XX, you commenced studying the course. On XX/XX/20XX, you paid your tuition fees. On XX/XX/20XX, you completed the course. On XX/XX/20XX, your employer contacted you to notify you that your leave of absence was scheduled to end on XX/XX/20XX. Your employer then offered you the option to extend your leave of absence until XX/XX/20XX. On XX/XX/20XX, you were awarded your qualification. You also asked your employer to resend the original leave of absence letter for you to review.
On XX/XX/20XX, you notified your employer that you would extend your leave of absence. You undertook the course to enhance your knowledge and skills in your employment field. Whilst enrolled in the course, you chose to study units that were specifically related to your work at Company A. You completed several units as part of the course. You did not receive any government allowances, and you were not reimbursed for the costs incurred to undertake the course. You did not receive a taxable bonded scholarship. Following completion of the course, you decided to remain in Country X and applied for a position Company B. You did not return to Company A following your leave of absence. Your departure date was XX/XX/20XX. On XX/XX/20XX, you commenced working at Company B. You intend to remain in Country X until your current visa expires on XX/XX/20XX. You then intend to return to Australia and continue working at Company B.
Income Tax Assessment Act 1997 section 8-1