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Edited version of private advice
Authorisation Number: 1051519788443
Date of advice: 20 May 2019
Ruling
Subject: Self-education
Question
Are you entitled to a self-education deduction for the course fees for a Masters of business Administration (MBA)?
Answer
Yes.
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
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are currently employed full-time as in the finance industry.
You have commenced part-time study doing a MBA.
This course is paid for through Fee-Help.
Your current role involves providing strategic advice in the areas of: finance and capital markets, financial analysis, and accounting and these are all subjects covered in the MBA.
Your role also involves you regularly meeting with the investment community and presenting the business case of your clients.
Your presentations will always include the following: company strategy, management strategy, supply chain, organisational and HR management, marketing strategy and operations management. These are all subjects covered in the MBA.
MBA subjects that you will study include:
· Finance
· Capital Markets
· financial analysis
· Accounting
· company strategy
· management strategy
· supply chain
· organisational and HR management
· marketing strategy and operations management
Your employer allows you time off to undertake the MBA.
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 discusses circumstances in which self-education expenses are allowable as a deduction under section 8-1 of the ITAA 1997. If a taxpayer's current income-earning activities are based on the exercise of a skill or some specific knowledge and the self-education enables the taxpayer to maintain or improve that skill or knowledge, the self-education expenses are allowable as a deduction.
In addition, if the study of a subject of self-education objectively leads to, or is likely to lead to, an increase in a taxpayer's income from his or her current income-earning activities in the future, the self-education expenses are allowable as a deduction.
The Commissioner is satisfied that there is a sufficient connection between the skills and knowledge required in your current duties and the MBA.
Accordingly, you are entitled to a deduction for the course fees associated with the MBA.