Private ruling: Self-education expenses
Date of advice: 17 January 2020
Published: March 2020
Ruling period: Year ending 30 June 2020 | Year ending 30 June 2021 | Year ending 30 June 2022 | Year ending 30 June 2023
Date scheme commenced: 1 July 2019

Ruling: Q1: Are your self-education expenses deductible? | A1: Yes. Your self-education expenses are deductible, as it is accepted the study meets the requirements detailed in Taxation Ruling TR 98/9. Further information about self-education expenses can be found by searching 'QC 31970' on ato.gov.au | Q2: Are you entitled to a deduction for course fees paid where you have obtained a loan under FEE-HELP? | A2: Yes. Obtaining a loan for all or part of the fees for the course under FEE-HELP does not preclude you from claiming a deduction for the expenses incurred in relation to the course. Further information about this issue can be found in ATO Interpretative Decision ATO ID 2005/26 Income Tax Deductions: self- education - course fees paid from FEE-HELP loan funds.

Relevant facts and circumstances: You are currently employed full-time in a management role. Your primary responsibility is project and portfolio management for a not-for-profit organisation. In your role, you report directly to the Chief Executive officer (CEO) and Operations manager and lead a project team. You are intending to improve your current skill sets by completing a Masters of Business Administration (MBA) with a major in Public Policy. You will undertake the course on a part time basis. Your duties include: · Management of projects and teams · Maintaining and cultivating relationships with external providers and stakeholders · Management of project finance, budget and forecasting · Project risk control · Developing business cases · Provide strategic project advice to CEO and Operations Manager · Deliver sustainability and innovation across projects · Contribute and respond to policies, state and national action plans, and sit on advisory councils to support the work of the organisation. Through your discussions with the CEO, it was agreed that the MBA is a suitable course that will sharpen your skills and see you implement new strategies, processes and offer leadership that will help the organisation. Your employer has provided a letter stating that they are supportive of your further education as your current role has a large focus on project management, sustainable business innovation, and responsible leadership and they consider the course components directly relate to and will support your role with the organisation. You anticipate that upon completion of the MBA course, it will lead to an increase in future income in your present position due to the increased breadth and depth in your knowledge. Your employer will allow you between two and three hours per week fully paid for you to attend workshops, tutorials and assessments. You will use FEE-HELP to assist in paying the course fees.

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