Are you entitled to a deduction for the self-education expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs of undertaking a course at XXXX University.
Yes. Your self-education expenses are deductible under section 8-1 of the ITAA 1997. The expenses you incur to complete the course will allow you to improve the knowledge and skills required to carry out your current income-earning activities and are likely to lead to an increase in income from your employment. The course has the relevant connection to your income earning activities, and did not enable you to get employment, to obtain new employment or to open up a new income-earning activity. To claim a deduction for these self-education expenses, you must have spent the money yourself and weren't reimbursed. 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 periods: DD MM YY The scheme commenced on: DD MM YY
You commenced employment with XXXX on DD MM YY, and you continue to be employed on a full-time basis in the role of XXXX within the organisation's sales division, working with clients in the X sector. You have not changed employers or positions at any time since commencing your postgraduate study. You do not receive Austudy, ABSTUDY, Youth Allowance, or any other government study payment. You do not receive a taxable bonded scholarship. You do not receive any allowance, reimbursement, or study-related payments from your employer; all course expenses are paid by you. You commenced a course at XXXX University on DD MM YY. Your estimated course completion date is DD MM YY. The course comprises X subjects. You are undertaking the course because your role has evolved from a primarily technical focus to one that requires stronger capability in accounting, finance, strategy, organisational behaviour and leadership. The course supports your existing duties by equipping you with skills in your current role without changing employers.
Your employer is supportive of your studies but does not fund any expenses. Any leave required for study must be taken from your existing annual leave balance. You do not receive study leave, allowances, bonuses, or any other study-related financial support. Your employer provided a letter of support, which stated support for you undertaking the course and confirmed that the skills gained would benefit both you and the organisation. You have not changed positions while undertaking the course. Your long-term career goal is to progress internally to a senior role within the organisation, focusing on strategic work in the XXXX sector. The course will directly support this progression. You pay your course fees personally and are not using the Higher Education Loan Program (HELP). The total cost of the course is approximately $XX (X subjects at approximately $XX each). You will also incur miscellaneous stationery costs of approximately $XX per year.
Income Tax Assessment Act 1997 section 8-1