| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1013139582083
Date of advice: 15 December 2016
Ruling
Subject: Work related expenses - self education
Question 1
Are you entitled to claim a deduction for self-education expenses for a Master's in Business Administration?
Answer
Yes.
This ruling applies for the following periods:
Year ending 30 June 20YY
Year ending 30 June 20ZZ
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are currently employed as an Operations Coordinator.
You commenced a Master in Business Administration (MBA) in 20XX. The course will finish in 20ZZ.
You currently perform general management duties including:
● Managing budget resources
● Project management
● Human resource management
Your employer recommended that you undertake this course and is encouraging you to complete the MBA.
The course will further develop your skills and knowledge in your current management role.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income, except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income.
Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business details the circumstances under which a deduction is allowable for self-education expenses. Self-education expenses are an allowable deduction if a taxpayer's income earning activities are based on the exercise of a skill or specific knowledge and the subject of the self-education enables the taxpayer to maintain or improve upon that skill or knowledge (paragraph 13 of TR 98/9).
Application to your circumstances
It is considered that the study will maintain or improve your skill or knowledge used in your current income earning activity. You are entitled to a deduction for the course fees incurred.