Private ruling: Self-education expenses
Date of advice: 24 March 2026
Published: 18 May 2026
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to claim a deduction for course fees, textbooks and related study materials under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes

Relevant facts and circumstances: You were employed by Company A in position A for the period DDMMYYYY to DDMMYYYY. You were employed by Company B in position B for the period DDMMYYYY onwards. You provided your employment contracts detailing the position duties for the position held at Company A and Company B. You commenced your Master of Business Administration at Institution C specialising in XXX and XXX on DDMMYYYY. You have completed the required core subjects as detailed in your private ruling request. You are undertaking the course as a part-time student.

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

Reasons for decision: Summary: Section 8-1 of the ITAA 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income. Taxation Ruling TR 2024/03 Income tax: deductibility of self-education expenses incurred by an individual discusses circumstances in which self-education expenses are allowable as a deduction under section 8-1. If a taxpayer's current income-earning activities are based on the exercise of a skill or some specific knowledge and the self-education enables the taxpayer to maintain or improve that skill or knowledge, the self-education expenses are allowable as a deduction. In addition, if the study of a subject of self-education objectively leads to, or is likely to lead to, an increase in a taxpayer's income from his or her current income-earning activities in the future, the self-education expenses are allowable as a deduction. | Detailed Reasoning - Application to your circumstances: To determine whether circumstances exist that support your self-education deductions, it is necessary to determine whether there is a sufficient connection between you incurring your self-education expenses and your current income earning activities in your positions held with Company A and Company B. Whether such a connection exists is a question of fact and is to be determined by reference to all the facts in your case. The Commissioner is satisfied on this occasion that you have shown connection to your employment activities for the specific subjects ruled on by providing your employment contract and an explanation from yourself and your employer as to how each subject relates to these activities. | Detailed Reasoning - Summary:: You have demonstrated that there is a sufficient connection between the undertaking of the specific subjects detailed in your facts and your income earning activities in your current position. You are therefore entitled to a deduction for your self-education expenses under section 8-1. If you complete any units listed in the General MBA and Specialised MBA in the future, you will be required to confirm with reference to TR 2024/03 the connection to your current employment duties at the time of incurring the expense to confirm your entitlement to claim as a work-related expense.