Private ruling: Self-education expense
Date of advice: 17 December 2024
Published: 28 January 2025
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 the self-education expenses be an allowable deduction under section 8-1 of the Income Tax Assessment Act 1997? | A1: Yes. Having considered your circumstances and the relevant factors, you are entitled to a deduction for your expenses under section 8-1 of the Income Tax Assessment Act 1997. To claim a deduction for a work-related expense, you must have spent the money your-self and weren't reimbursed. The expense can only be claimed within the income year it incurred. Further information on the Commissioner's view can be found in Taxation Ruling (TR) 2024/3 Income tax: deductibility of self-education expenses incurred by an individual. Information on self-education expenses you can claim, including how to calculate your claim, can be found on our website ato.gov.au by entering QC 72166 into the search bar at the top right of the page.

Relevant facts and circumstances: You are full-time employee at company A as an IT professional. You are intending to enrol in the course Executive Master of Business Administration (MBA) program at the University. The course will commence in XX 20XX and you intend to complete in XX 20XX. You expect to take X years to complete the course. Your manager agreed that the MBA is suitable course that enhance your skill and knowledge and it will benefit the organisation. The completion of the course will likely lead to an increase in future income in your current position. You receive no allowances or reimbursement to study, including Austudy, ABSTUDY or Youth Allowance. You will not receive a taxable bonded scholarship. Your employer will not provide allowance for this study. You will be privately funding all expenses. Your employment Your main responsibilities include the following: • providing strategic and operational leadership • developing, implementing, and maintaining strategies and road maps in collaboration with the executive team • identifying innovation opportunities to further grow the business • leading a team of staffs • managing key supplier relationships • developing operational budgets. • Course detail The course offers the following 12 units: • Accounting for Managers: Principles of financial and management accounting, understanding financial statements, and using accounting information for decision-making. • Business Analytics for Managers: Data analysis techniques and tools to support business decision-making, including statistical analysis and predictive modelling. • Managerial Finance: Insights into financial management, including capital budgeting, financial markets, and investment strategies. • Innovation and Entrepreneurship: Processes of innovation and entrepreneurship, emphasizing the creation and management of new ventures and innovative projects. • Strategic Management: Formulation and implementation of business strategies, focusing on competitive analysis and strategic planning. • Fundamentals of Leadership: Development of leadership skills, exploring different leadership styles and theories, with a focus on practical application in business settings. • Managing Contemporary Organisations: Modern management practices and organizational behaviour, including change management and organizational culture. • Marketing Management: Marketing principles and strategies, including market research, consumer behaviour, and brand management. • Enterprise Project: A research-based project that allows you to apply your learning to a real-world business problem, integrating knowledge from various courses. • Business Law: Overview of legal principles affecting businesses, including contracts, corporate governance, and regulatory compliance. • Services and Operations Management: Management of service operations, focusing on service quality, process improvement, and operational efficiency. • Managing in a Global Context: Examination of global business environments, including international trade, cross-cultural management, and global strategic planning. Expenses you intend to claim • You want to claim Tuition Fees, approximately $XXXX over the period of study. The Tuition Fees will be paid per module and will be payable three times per year. • You also expect additional costs for Course Materials of up to $X per year.

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