| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051445880203
Date of advice: 25 October 2018
Ruling
Subject: Self-education expenses
Can you claim a deduction for self-education expenses incurred in undertaking the Executive Masters of Business Administration (MBA) program?
Answer
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
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You have been employed as a Business Systems Manager since 20XX. Your duties as a Business Systems Manager include:
● Effectively lead, develop and coach a high performance team.
● Analyse relevant performance data and identify significant variances, using results of analyses to provide appropriate and timely advice to assist in achieving or improving on performance targets.
● Interrogate relevant management systems on a regular basis to identify issues and make adjustments as necessary to ensure data integrity, correct errors and match output to plan.
● Identify and report system process issues needing enhancement or correction and initiate solution ideas.
● Ensure control mechanisms are in place to maintain procedural compliance.
● Set up, maintain and support processes, systems and guidelines to consistently gather, enter, store and report on relevant data, supporting other system users through coaching mentoring and arranging appropriate training.
● The skills required as a Business Systems Manager include:
● A high level of skill in the preparation, analysis and presentation of factual and practical information for use by key decision makers.
● High level of knowledge of relevant strategic finance issues and their use in the provision of best practice commercial advice to key decision makers.
● High level of conceptual, analytical and problem solving skills including the provision of financial models/ systems, processes and frameworks.
● High level of negotiation and interpersonal communication skills that foster the development of business relationships and promote strategic outcomes.
You commenced the Executive MBA program in 20XX and have 12-18 months to complete the course.
Subjects in the Executive MBA include:
● Data Analysis.
● Financial Reporting and Analysis.
● People Management.
● Economics for Managers.
● Leadership.
● Social Responsibility and Ethics.
● Finance.
● Marketing Management.
● Process and Operations Management.
● Innovation.
● Corporate Financial Management.
● Management Accounting.
● Global Business Economics.
● Strategy.
● Business in Asia.
● Personal Effectiveness Program.
● Entrepreneurial Mindset.
● Social Entrepreneur Consulting Practicum (Capstone).
● Business in Complex Environments (Capstone).
To reserve your place in the Executive MBA program you were required to pay a deposit. Your employer paid the deposit directly to the university. You signed a declaration with your employer to accept that if you were to leave the company in the first 12 months, you would repay the deposit.
In 20XX, the university offered and you accepted a scholarship. The scholarship is allocated as a tuition waiver in equal instalments to the Executive MBA program. You are not paid or able to redeem the scholarship in any other manner.
In the 20XX financial year, you made a part payment of your tuition directly to the university and deferred the remaining balance through FEE-HELP.
In the 20XX financial year, you have also incurred expenses for stationary, transport, accommodation, meals and equipment.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
