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Edited version of private advice
Authorisation Number: 4110073392923
Date of advice: 9 September 2019
Ruling
Subject: Self-education expenses
Question
Are you entitled to a deduction for the self-education expenses incurredfor your Master in Business Administration (MBA)?
Answer
Yes.
Your self-education expenses are deductible, as it is accepted the study meets the requirements detailed inTaxation Ruling TR 98/9-Income tax: deductibility of self-education expenses incurred by an employee or a person in business. Further information about self-education expenses can be found by searching 'QC 31970' on ato.gov.au.
This ruling applies for the following periods:
Year ended 30 June xxxx
Year ending 30 June xxxx
Year ending 30 June xxxx
The scheme commences on:
February xxxx
Relevant facts and circumstances
On xx October xxxx you were employed as a Strategy Associate.
You were employed in that position until you were promoted to Strategy Manager on xx June xxxx; a position that you currently hold.
You have accepted an offer to study an MBA.
You are undertaking the course in order to improve your business and strategy knowledge and develop your soft skills including leadership and team work skills. Additionally, the course will improve your knowledge and skills for your new role as Strategy manger, specifically in terms of strategy and business plan development, team and people management, finance, decision sciences, technology, operations and change management and marketing.
You will be commencing study inJanuary xxxx and concluding study in December xxxx.
You will be taking a leave of absence from your employment whilst you are studying.
You will still be employed by your employer during this time.
You will be re-engaged in your current position as a Strategy Manager when you complete your studies in December xxxx.
You are financing the course yourself.
You are not receiving Austudy, ABSTUDY, Youth Allowance or a taxable bonded scholarship to study.
You are not receiving an allowance or being reimbursed by your employer for any expenses incurred by you for your education.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
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