Private ruling: Self-education expenses
Date of advice: 17 October 2022
Published: 9 January 2023
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will you be entitled to a deduction for the costs you incur in studying your Master of Business Administration (MBA)? | 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 accept the MBA will maintain or enhance the skills that are required in the performance of your current employment. The MBA has the relevant connection to your current income earning activities. Therefore, you will be entitled to a deduction for the costs you incur in relation to the MBA, including the course fees. 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. Further information on self-education expenses including how to calculate your claim can be found on our website ato.gov.au and entering quick code QC31970 into the search bar at the top right of the page.

Relevant facts and circumstances: You are employed as a construction engineer, project manager and project engineer in the civil construction industry. You currently hold a Bachelor of Engineering and diplomas in Leadership and Management, and Project Management. You have supplied your employer's detailed position description of your role as project manager. You are responsible for the delivery of projects while managing the project team, resources, and processes in accordance with scope, quality, time, and budget. You are a leader and mentor to the project team. In 20XX, you intend to commence your Master of Business Administration (MBA). You have supplied the provider's MBA brochure which details the course structure and subject descriptions. You have provided an explanation as to how each subject directly relates to your current employment. The MBA will improve your leadership and management skills, knowledge, and business acumen you need to perform your current role. You have supplied a letter from your employer endorsing your study and confirming the connection between the MBA and your current employment. The course fees will be paid under the FEE-HELP program.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1936 section 82A