Private ruling: Work related self-education expenses.
Date of advice: 16 April 2019
Published: May 2019
Ruling period: 30 June 2019 to 30 June 2024

Ruling: Q1: Will the fees incurred in relation to the masters degrees be an allowable deduction under 8-1 of the Income Assessment Act 1997 (ITAA 1997)? | A1: Yes. You have demonstrated that your studies have the relevant nexus to your current employment. You require these skills in your current position and the masters will further develop your skills. This could lead to increase in future income in your current position. As you have met the requirements for eligibility for a deduction of self-education expenses, you are entitled to claim a deduction for the amount you will incur with tuition fees as outlined in Taxation Ruling TR 98/9 and section 8-1 of the ITAA 1997.

Relevant facts and circumstances: You currently work full time role as a Director in a particular industry. You will be undertaking two Masters, degrees. Once the degrees are completed you work will increase and this will allow your income to increase. The Masters’ degrees will improve specific skills, particularly leadership, administrative and public skills. Your employer supports you further studies and will not be reimbursing you for the expenses. Both Masters are highly desired in your current role’s job description. You have provided relevant details of your current role. You have provided relevant details of the Masters’ degrees.

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