Private ruling: Deductions - self-education expenses
Date of advice: 26 August 2024
Published: 8 October 2024
Ruling period: Year ended XX XXXX 20YY
Date scheme commenced: XX XXXX 20YY

Ruling: Q1: Are the Master of Business Administration fees deductible for a Practice Director under Section 8-1 Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Your self-education expenses will be deductible under section 8-1 of the ITAA 1997 as they have a sufficient connection to your income earning activities. Further information about self-education expenses can be found in Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual.

Relevant facts and circumstances: In XXXX 20YY, you began employment with Company A as a Director of a relevant profession. You are employed on a full-time basis. In XXXX 20YY, you transitioned to the role of a Practice Director of Company A. Your duties now include business operations, strategic decision-making involving sales, marketing, branding, human resources, finance and professional practice. You are also expected to present monthly reports to the board of Company A. On XX XXXX 20YY, you commenced a Master of Business Administration through an Australian Education provider. You provided a list of your course subjects. You expect you will complete your course between XX 20YY and XXXX 20YY. You have paid the following fees totalling $XX. Your employer has supplied a letter acknowledging that the course of education will provide you deeper insight into aspects of your current role as Practice Director. You will not receive Austudy, ABSTUDY or Youth Allowance. You have not received a taxable bonded scholarship. You will not receive an allowance or reimbursement for the expenses incurred for your study. You will pay the courses out of your own wages. You will not utilise the Higher Education Loan Program to pay for your education. You will not receive a Commonwealth supported place subsidy for this course of education.

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