Private ruling: Income tax - self-education
Date of advice: 9 June 2023
Published: 31 July 2023
Ruling period: Financial year ending 30 June 2023 | Financial year ending 30 June 2024
Date scheme commenced: 1 October 2022

Ruling: Q1: Are you entitled to a self-education deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the cost of undertaking a Master of XX course? | A1: Yes. Your self-education expenses are deductible under section 8-1 of the ITAA 1997. The expenses you incur to complete a Master of XX course will allow you to improve the knowledge and skills required to carry out your current income-earning activities and are likely to lead to an increase in income from your current employment. Further information about self-education expenses can be found in TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or person in business.

Relevant facts and circumstances: You are currently employed in the healthcare industry with XX. You commenced employment with this organisation in XX. You are a trained healthcare specialist and you are involved in assessment and treatment of patients with complex health issues. You previously completed two healthcare related qualifications: On XXXX you commenced a Master of XX course with a university (based overseas). You are undertaking this course via online correspondence. The reason why this course was selected is because of the outcomes that will be received, and this institution provided the best outcome alongside best option for duration of study and cost. Your intention for studying the Masters' course is so you can upgrade your qualifications, and improve specific skills and knowledge used in your current role. This increase in skill will provide you with an additional lens through which you do your work and it will provide you with additional skills you can use in your role. In time, it will also give you the opportunity to do more specific assessments and allow you to undertake a more specialised role. This will potentially allow you to progress under a different payment band, thus increasing your earning potential. The course is scheduled to finish on XXXX. The costs of each module is $XX. You also incur expenses for stationery and textbooks. Your employer provided a supporting letter confirming that your masters' study will upgrade your skills, knowledge and qualifications which will be directly beneficial to your current role and role development with your current employer. You have reduced your working days to four days to allow study time for you to complete the masters' course. You also have access to allocated study leave (from your employer) if required.

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