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Edited version of private advice
Authorisation Number: 1051618571140
Date of advice: 17 January 2020
Ruling
Subject: Self-education expenses
Question
Is the portion of your self-education expenses not funded by your employer deductible?
Answer
Yes.
Your out of pocket self-education expenses are deductible, as it is accepted the study meets the requirements detailed in Taxation Ruling TR 98/9. 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 ending 30 June 2020
Year ending 30 June 2021
The scheme commenced on:
1 July 2019
Relevant facts and circumstances
You are currently employed in a senior position with a large industrial employer.
Most of your time is spent managing a team of engineers, providing guidance and leadership to an operating centre, and developing strategies for the refinery.
You are commencing the study of a Master of Business Administration (MBA) as you require updated knowledge on strategic decision making, management of employees, implementing best practice organisational changes, and financial management of budgets.
You consider the course will maintain or improve the specific skills or knowledge you require in your current work activities.
At this time, your employer intends to fund 85% of your tuition fees; however, it is possible that market cycles may lead to a change in the level of funding provided for your studies in the future.
You will continue to work in your current role while studying.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1