Deductions - self education expenses

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

Are you entitled to a deduction for self-education expenses incurred for HECS-HELP Debt ?

No. This ruling applies for the following period : Year ended 30 June 20XX The scheme commences on 1 July 20XX

You are enrolled with XXXX University and completing your Masters in Business Administration. You missed the cut off date for the university census date and so two of your courses were transferred to the Australian Taxation Office as a HECS HELP debt. The two courses are; • MIS 770 Analytical Skills for Managers - XXXX University • MBA707 - The XXXX Advantage: Capstone The amounts payable for these two courses are $X effective date of XX December 20XX and $X effective date of XX March 20XX totalling $X. You have paid these amounts on XX April 20XX and XX May 20XX, before the indexation date.

Income Tax Assessment Act 1997 section 8-1 Income Tax Assessment Act 1997 section 26-20 Detailed reasoning 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 or a provision prevents you from deducting it. You cannot deduct a student contribution amount paid to a higher education provider under the Higher Education Support Act 2003: paragraph 26-20(1)(ca) of the ITAA 1997. Such payments are made by a student to cover the cost of a course of study at a tertiary educational institution. Repayment amounts for a HELP debt or a Student Financi