Private ruling: Self-education expenses
Date of advice: 8 May 2020
Published: June 2020
Ruling period: Year ended 30 June 2019 | Year ending 30 June 2020 | Year ending 30 June 2021 | Year ending 30 June 2022 | Year ending 30 June 2023
Date scheme commenced: 01 July 2018

Ruling: Q1: Are your self-education expenses an allowable deduction? | A1: Yes. Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business (TR 98/9) discusses self education expenses. Where study has relevant connection to current income-earning activities, enables to maintain or improve that skill or knowledge, and likely to lead to an increase in income from current role, the self-education expenses can be claimed as a deduction. Having considered your circumstances, the Commissioner accepts that you are entitled to a deduction for your self-education expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997).

Relevant facts and circumstances: You are currently employed fulltime as a XX since 20XX You have been with your current employer fulltime since 20XX You enrolled October 20XX with XX at University of XX and expect to complete in 20XX You are studying part time for a formal qualification, Masters of Business Administration (Technology). The MBA you are undertaking covers the specific knowledge you did not have previously to effectively understand the concepts of your current job role. Your previous certification is within the technical domain, and further knowledge and certification within the business domain will help in performing better within this role, and allow for further remunerations advances. The MBA course comprises 12 subjects: marketing management, accounting, economics, corporate finance, fundamentals of people management, leadership, strategic management, e-business strategy, business law & technology, digital innovation, digital strategy and, implementing strategy You are currently under FEE-HELP program. Each subject costing between $4,600 - $4,800 Your employer is unable to financially contribute to your course expense Your employer supports the course by providing study leave to be utilised for this course. You will be maintaining full time employment in your current role while studying.

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