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Edited version of private advice
Authorisation Number: 1051867659862
Date of advice: 22 July 2021
Ruling
Subject: Deductibility of self-education expenses
Question
Are you entitled to a deduction for the self-education expenses you incurred for your Master in Business Administration (MBA)?
Answer
Yes.
This ruling applies for the following period:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
In March 20XX you were employed as a Global Sales Manager.
You are undertaking a Master of Business Administration.
You are undertaking the course in order to improve your current skillset build upon your current knowledge of business administration in your role as Global Sales Manager. This will provide you with further options for future advancement within your current employment.
You are not receiving Austudy, ABSTUDY, Youth Allowance or receiving a taxable bonded scholarship to study.
You are not using the Higher Education Loan Program (HELP) to pay the course fees.
There is a total of 12 subjects to be completed.
Your employer supports your decision to undertake the course and has contributing a small amount this year and you will need to apply for this each subsequent year.
You are financing the remainder of the fees yourself.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 8-1
Reasons for decision
Your self-education expenses are deductible, as it is accepted 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. Further information about self-education expenses can be found by searching 'QC 31970' on ato.gov.au.
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 or a provision of the taxation legislation excludes it.
Taxation Ruling TR 98/9 deals with the deductibility of self-education expenses.
Self-education expenses are deductible under section 8-1 of the ITAA 1997 where they have a relevant connection to the taxpayer's current income earning activities.
You are undertaking the course in order to improve your current skillset build upon your current knowledge of business administration in your role as Global Sales Manager. As such, your self-education expenses are deductible, as it is accepted the study meets the requirements detailed inTaxation Ruling TR 98/9-Income tax: deductibility of self-education expenses incurred by an employee or a person in business.