Announcements
Looking for information on the JobKeeper extension? Check out our answers to common questions the community has been asking.

ATO Community

HECS Voluntary Payment + Deduction

Highlighted

Newbie

Views 7365

Replies 3

Hi ATOCommunity, 

 

A few interesting questions: 

 

1. Where does the ATO draw the line as to how much a course consitutes to their criteria of being relatable to your professional job. 

2. Assuming that I completed 2 courses that are definitely considered to further my chances of increased pay for my current role and that I had put those 2 courses onto a HECS loan: If I then repay the equal amount of that loan to cover those two courses, would I be able to claim that as a deduction on my taxable income for this financial year. 

 

Thanks in advance for the wisdom and help! Smiley Happy 

 

 

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @UniQuestionAsk,

 

Thanks for your patience whilst we received specialist information regarding your query!

 

Repayments of loan amounts, such as under HECS or similar schemes, are not deductible expenses. You can find information about what kind of expenses relating to self education can be deductible on our Education and study page on our website.

 

Generally, the principles used to determine the deductibility of self-education expenses are summarised in Taxation Ruling TR 98/9 .  Generally, a deduction is allowable for self-education expense where:

  • You have incurred the expense undertaking specific study required by your occupation to maintain or improve a skill or knowledge, or,
  • The self-education leads to, or is likely to lead to, an increase in income from your current income earning activity

Expenses of a capital nature are not deductible. In some situations you may be entitled to decline in value deductions (depreciation) for capital asset purchases.

 

TR 98/9 does provide some examples to help explain when self-education expenses are, and are not, deductible expenses.  It is important to note that a common reason for being non-deductible is where a self-education expense primarily only helps you to obtain employment in the future and doesn’t meet either of the criteria listed above.

 

If you have further questions you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator, alternatively if you'd like to receive a more tailored response to your query, you can write to us to request a private ruling. Private rulings are a free service we provide and we aim to respond within 28 days from receiving your request.

 

Thanks, JodieH.

3 REPLIES 3
Highlighted

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @UniQuestionAsk,

 

Thanks for your patience whilst we received specialist information regarding your query!

 

Repayments of loan amounts, such as under HECS or similar schemes, are not deductible expenses. You can find information about what kind of expenses relating to self education can be deductible on our Education and study page on our website.

 

Generally, the principles used to determine the deductibility of self-education expenses are summarised in Taxation Ruling TR 98/9 .  Generally, a deduction is allowable for self-education expense where:

  • You have incurred the expense undertaking specific study required by your occupation to maintain or improve a skill or knowledge, or,
  • The self-education leads to, or is likely to lead to, an increase in income from your current income earning activity

Expenses of a capital nature are not deductible. In some situations you may be entitled to decline in value deductions (depreciation) for capital asset purchases.

 

TR 98/9 does provide some examples to help explain when self-education expenses are, and are not, deductible expenses.  It is important to note that a common reason for being non-deductible is where a self-education expense primarily only helps you to obtain employment in the future and doesn’t meet either of the criteria listed above.

 

If you have further questions you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator, alternatively if you'd like to receive a more tailored response to your query, you can write to us to request a private ruling. Private rulings are a free service we provide and we aim to respond within 28 days from receiving your request.

 

Thanks, JodieH.

Highlighted

Initiate

Replies 1

What about ATO ID 2005/26 - this states  that a taxpayer is entitled to a deduction under section 8-1 of the ITAA 1997 for course fees paid where the taxpayer has obtained a loan under FEE-HELP and the course is directly related to their current income earning activities.

Highlighted

Community Support

Replies 0

Hi @LeighRaph

 

Correct you can claim fees payable under FEE-HELP but not HECS-HELP.

 

Thanks, Ari