Private ruling: Self-education expenses
Date of advice: 31 August 2023
Published: 9 October 2023
Ruling period: Year ended June XXXX | Year ending June XXXX | Year ending June XXXX
Date scheme commenced: 1 July XXXX

Ruling: Q1: Are you able to claim Self-Education expenses under Section 8-1 of the ITAA 1997 incurred in completing a Master of Business Administration (MBA) for the periods ending June XXXX, June XXXX, June XXXX? | A1: Yes. Having considered your circumstances and the relevant factors, you will be entitled to a deduction for the costs you incur in studying your MBA. We acknowledge the MBA will maintain or enhance the skills required in the performance of your current employment. The MBA has a relevant connection to your current income earning activities. Therefore, you will be entitled to a deduction for the cost you incur in relation to the MBA, including the course fees. You can claim the amount for the course fees in the year you incur the expense for each course. We accept that the MBA meets the requirements detailed in Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business.

Relevant facts and circumstances: You are employed by Company A. You are currently completing a Master of Business (MBA) through University A. You have been working with Company A as a Customer Project Manager since XXXX You have had no breaks in employment since you commenced with Company A in XXXX. This course may lead to an increase in income. The expenses have been incurred in gaining assessable income. You initially had a HELP debt to pay for these courses. You have cleared all liabilities with the HELP debt and are funding the course yourself. You have provided a cost summary for each module, along with an explanation of the nexus of each unit and your employment. You are wanting to claim the expense for the XXXX, XXXX, and XXXX FY's.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1