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Edited version of your written advice
Authorisation Number: 1051491391757
Date of advice: 13 March 2019
Subject: Self-education expenses
Question
Can you claim a deduction for the self-education expenses to study a Master of Business Administration (MBA)?
Answer
Yes
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 your assessable income, except where the outgoings are of a capital, private or domestic nature.
Taxation Ruling TR 98/9 states self-education expenses are allowable as a deduction if your current income-earning activities are based on the exercise of a skill or some specific knowledge and the subject of the self-education enables you to maintain or improve that skill or knowledge. A deduction is also allowable if the education is likely to lead to an increase in income from your current income earning activities.
Based on the facts you have provided, we can conclude that you are entitled to claim a deduction for the self-education expenses associated with studying the MBA.
This ruling applies for the following periods:
Year ended 30 June 2017
Year ended 30 June 2018
Year ending 30 June 2019
The scheme commences on:
1 July 2016
Relevant facts and circumstances
You are employed as a Senior Manager by Employer Z.
You began employment with your employer in late 20XX.
Your duties include building and leading a team, financial management, client engagement and co-ordinating with other teams on a global basis.
Your duties in Position Y and Position Z are the same with a different client base.
You applied for entry into the Course Y with the Education provider.
You were accepted into the program which commenced on mid 20XX.
Your employer is supportive of your undertaking the course and has allowed you enough leave to meet the course requirements.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1