Tax deductibility of postgrad uni fees

[Paul@PFI]

TR 98/9 Para 26 and throughout ruling continually refers to "necessarily incurred" distinctly from the issue of loan payments etc. This and a further issue peaked my interest in looking further at post-grad course costs....

This ruling raises the interesting issue of TAFE's...Their courses are generally NOT deductible as they offer preliminary annd basic education in a course or vocation. So then this can be distinguished from post-grad - Right ?

So I asked if the course fees were deductible when incurred...Since such a student has a obligation to repay etc.

The answer was Yes provided the course isnt Commonwealth funded and if student pays any basic fee that part isnt deductible eg Open Learning basic levy. I recall Para 122 had something to do with that element. ....

I will get back soon....

 

[Paul@PFI]

Here we go.... Now on ATO website. (One of few things you can now search after Google took over their website !!) http://www.ato.gov.au/Individuals/T...10/D4---Work-related-self-education-expenses/

If, when you incurred your expenses you satisfied the conditions necessary to claim a deduction, you can claim the following:
your tuition fees payable under FEE-HELP (FEE-HELP provides assistance to eligible fee-paying students, who are not supported by the Commonwealth, to pay tuition fees)

I reckon that ATO guidance on self education is misleading to prevent claims for deductions. They
- Automataically assume a s82A $250 reduction in their worksheets. This does NOT apply to post grad courses!!
- The general view in most articles is that uni fees under HELP are non-deductible. The wording used by ATO is misleading and applies only to loan payments - To stop a double dip.

 

[ozmale42]

If this thread has taught me one thing it's that I can now understand why tax lawyers in my firm charge out at such high rates.

 

[D.T.]

Slightly different - if personal loan/credit is used to pay for an industry specific course where hecs/help is not applicable, is your interest deductible? (Already ascertained that the course fee is)

 

[Rob G.]

s.26-20 denies deductions for contributions and debt repayments under Chapter 4 of the Higher Education Support Act 2003.

HECS-HELP
FEE-HELP
OS-HELP
SA-HELP

It can also apply to certain payments under the Student Assistance Act 1973 and the Social Security Act 1991.

The original post stated a HECS funding which is now part of the accumulated HELP debt.