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Edited version of private advice
Authorisation Number: 1051668058845
Date of advice: 01 May 2020
Ruling
Subject: Work related self-education expenses
Question
Can the Masters degree you have undertaken be counted as a self-education expense and be deductible for financial year 2019/20 under the Income Tax Assessment Act 1997?
Answer
Yes. Your expenses meet the requirements in Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business.
This ruling applies for the following period:
Year ending 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
You have been employed in a medical clinic since 20XX.
You manage staff, who directly report to you, as well as independently contracting General Practitioners.
Your employer:
· Has not contributed any funds towards your study.
· Allows you to take leave from work whenever you have major submissions due.
· Is very flexible and supportive because the course is so useful in your role.
The course is provided by a University.
Your Masters degree involves both traditional subjects as well as research.
The subjects are related to healthcare practice, policy, systems, research and management.
You paid the course fees entirely yourself with no loans.
The degree provides graduates with the ability to research, diagnose, innovate, plan, practice, manage and appraise health issues to achieve better outcomes within a dynamic environment.
Your current income earning activities are based on the exercise of clinical, practice management, and educational skills. The Masters degree enables you to maintain and improve your skills, knowledge and abilities. You provided a list of the responsibilities of your position as a clinical practice manager.
You identified gaps in your skills and knowledge which will be remedied by the course.
A letter from your employer confirmed your responsibilities.
The additional study and research will enhance your existing skills and abilities and will very likely lead to promotion and an increase in income. The letter from your employer also confirmed this. You are not completing the course to gain new employment.
Relevant legislative provisions
Income Tax Assessment Act 1997