Edited version of private advice

Authorisation Number: 1051858585504

Date of advice: 12 July 2021

Ruling

Subject: Income tax - self-education expenses

Question

Are you entitled to a deduction for self-education expenses for your Masters in Business Administration (MBA) course?

Answer

Yes. Your 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:

Financial year ending 30 June 2021

Financial year ending 30 June 2022

Financial year ending 30 June 2023

The scheme commences on:

17 May 2021

Relevant facts and circumstances

You commenced work at ABC on XXXX.

In your current position you are required to:

-      manage staff which directly report to me and contribute to leading the digital interface team

-      recruit key staff members

-      manage the budget for my department and contribute to maintaining and exceeding core KPIs (both for project delivery and project cost)

-      contribute to the design and functionality of digital marketing for new products

-      analyse key data metrics to assess conversion for website and application sale conversion

-      ensure project costs adhere closely to initial estimates and regular monitor charges

-      regularly monitor the success of digital projects by analysing and assessing key data to report back to the global leadership team

-      work on, and be proficient in work on design patents

-      assist in the application for and acquire trademarks

-      examine existing copyrighted material

-      champion key team member events e.g. COVID workshops, XXX Rally, team experiences to boost morale and support team members

-      manage complex contractual negotiations

-      manage contracted staff and consultants and ensure project deliverables are delivered in a timely fashion, as the business requires

-      manage projects, including contract negotiation and dispute resolution

In 20XX you were invited to enrol in a Masters in Business Administration (MBA) course by XYZ University.

In 20XX you commenced the MBA course with XYZ University.

Your intention for undertaking the course is to enhance your skills and knowledge that will assist you in your current role.

You are not undertaking the MBA course to obtain new employment.

The MBA program study will develop a valuable skillset for your current role and is likely to lead to promotion and an increase in income. The majority of your colleagues in senior leadership positions within the business hold MBA degrees, as do many members of the global leadership team.

Your employer supports your ambition to undertake the MBA course. Your employer offers time-off for examinations/presentations and provides a flexible working environment so you can fulfil your study requirements.

The XYZ University MBA course is broken into two key components:

• Core functional bootcamps

The first part of XYZ's MBA program features eight bootcamps delivered in intensive mode, providing you with an immersive experience in an efficient timeframe. The bootcamps equip you with the core knowledge and provide you with the necessary foundation to progress through the MBA. You will study interpersonal dynamics, leadership, motivation and organisation, effective decision making, managerial economics, marketing, accounting, and financial decision making. The new program has minimised the time students are required on campus, allowing the flexibility students need to balance their professional and personal lives.

• Business engineering

The second part of the MBA utilises XYZ's distinct research strengths, equipping you with the skills and experience to stand out in the marketplace. This semester focuses on creative thought, data analytics and strategic management. These subjects provide you with the necessary skills to do the Business Transformation capstone project.

The Master of Business Administration program comprises 16 subjects (not including specialisation, as follows:

Required subjects (8 x 5cp)

-      BMBA70-810 Individuals, Teams and Leadership

-      BMBA70-820 Interpersonal Dynamics

-      BMBA70-830 Effective Decision Making

-      BMBA70-840 Motivation and Organisation

-      BMBA70-850 Managerial Economics

-      BMBA70-860 Marketing for Managers

-      BMBA70-870 Accounting for Managers

-      BMBA70-880 Financial Decision Making

Required subjects (4 x 10cp)

-      BMBA71-301 Data Analytics for Decision Making

-      BMBA71-302 Strategic Insight

-      BMBA71-303 MBA Capstone

-      MGMT71-326 Project Innovation and Change

Elective (4)

-      Students can choose up to 40 Credit Points of General Elective Subjects (40cp).

-      General elective - A subject that may be chosen from any subject on offer across the University provided requisites, enrolment restrictions and any other faculty requirements have been met.

Specialisation (4 Subjects)

-      Big Data

-      Finance

-      International Business

-      Marketing

-      Tourism Management

-      Health Management

The MBA program will assist you in enhancing your skills, particularly assisting with the development and scope of my skills in marketing, data analytics, financial acumen/financial decision making, interpersonal and leadership skills, management, and decision making for the business. Furthermore, given the nature of COVID-19, this course will make you more adaptive and innovative, allowing you to perform better in your current role at XXX.

The MBA course will cost approximately $XX per semester (not including electives/specialisation)

You will incur the costs of the MBA course and will not be reimbursed by your employer.

You intend to complete the MBA course by 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1