Private ruling: Work related expenses - self education
Date of advice: 15 December 2016
Published: May 2017
Ruling period: Year ending 30 June 20YY | Year ending 30 June 20ZZ
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to claim a deduction for self-education expenses for a Master's in Business Administration? | A1: Yes.

Relevant facts and circumstances: You are currently employed as an Operations Coordinator. You commenced a Master in Business Administration (MBA) in 20XX. The course will finish in 20ZZ. You currently perform general management duties including: ● Managing budget resources ● Project management ● Human resource management Your employer recommended that you undertake this course and is encouraging you to complete the MBA. The course will further develop your skills and knowledge in your current management role.

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

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (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 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business details the circumstances under which a deduction is allowable for self-education expenses. Self-education expenses are an allowable deduction if a taxpayer's income earning activities are based on the exercise of a skill or specific knowledge and the subject of the self-education enables the taxpayer to maintain or improve upon that skill or knowledge (paragraph 13 of TR 98/9). Application to your circumstances It is considered that the study will maintain or improve your skill or knowledge used in your current income earning activity. You are entitled to a deduction for the course fees incurred.