Edited version of private advice

Authorisation Number: 1051838671010

Date of advice: 19 May 2021

Ruling

Subject: Self-education expenses

Question

Are you entitled to a deduction for tuition fees and travel expenses incurred in undertaking a Master of Business Administration?

Answer

Yes.

Your self-education expenses are deductible because we accept that the study meets the requirements detailed in Taxation Ruling TR 98/9 Income Tax: deductibility of self-education expenses incurred by an employee or a person in business. Also, unlike tuition fees paid under HECS-HELP, tuition fees paid using FEE-HELP are not excluded from being deductible. Note that your self-education expenses deduction may have to be reduced by up to $250. For more information about the deductibility of self-education expenses search QC 31970 on the ATO website at ato.gov.au.

This ruling applies for the following periods:

Year ending 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

The scheme commences on:

DD/MM/YYYY

Relevant facts and circumstances

You commenced employment with your employer in 20XX.

You are employed on a full-time basis with your employer.

You have held the position of Associate Director with your employer since DD/MM/YYYY.

You commenced studying the Master of Business Administration (MBA) at the educational institution on DD/MM/20XX.

You are enrolled in the MBA course on a full-time basis.

You expect to complete the MBA course in MM/YYYY.

You are paying for your course using FEE-HELP.

You are not receiving any government allowance to study (including Abstudy, Austudy or Youth Allowance).

You are not receiving any scholarships in relation to your study.

Your employer will not reimburse you for any fees you incur in completing your MBA.

Your employer allows you to use study leave, when required, to assist you to meet course requirements.

Your employer is supportive of you obtaining an MBA as your immediate superiors have expressed that it will assist you in your current role and contribute to improving your existing skills and knowledge.

You have not changed, and do not intend to change, employers whilst undertaking the program and on completion intend to progress with your current employer.

After completion of your MBA, you hope to hold the position of Director with your employer.

You have provided details of how each subject in your MBA is related to your specific duties as Associate Director.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1