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Edited version of your written advice
Authorisation Number: 1051359433778
Date of advice: 17 April 2018
Ruling
Subject: Self Education Expenses
Question
Are you entitled to a deduction for the self-education expenses incurred in undertaking a Master of Business Administration (MBA)?
Answer
Yes
Section 8-1 of the Income Tax Assessment Act 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 discusses the circumstances under which self-education expenses are allowable as a deduction. A deduction is allowable for self-education expenses if a taxpayer's current income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of the self-education enables the taxpayer to maintain or improve that skill or knowledge (Federal Commissioner of Taxation v. Finn (1961) 106 CLR 60, (1961) 12 ATD 348.
It is considered that the Masters in Business Administration (Finance) sufficiently relates to and improves upon the skills you use in your current income producing activities.
This ruling applies for the following periods:
Year ending 30 June 20xx
Year ending 30 June 20xx
Year ending 30 June 20xx
Year ending 30 June 20xx
The scheme commenced on
01 July 20xx
Relevant facts and circumstances
You are currently employed as a Manager.
You commenced employment in 20xx.
After working in your current role for a period, you commenced the MBA at a tertiary institution in 20xx with payment being paid directly by you.
You will complete the MBA completely on line and the course is scheduled to take three years to complete.
You have a letter of support from your employer stating that they are of the view that the MBA:
● Is directly relevant to your role
● Will support you in better performing the requirements of your current role
● Will support you in further progressing within the company.
On completion of the MBA degree you intend to continue to work for your employer.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1