Edited version of private advice

Authorisation Number: 1051945082234

Date of advice: 1 February 2022

Ruling

Subject: Self-education expenses

Question

Can you claim the costs of and incidental to the Masters program you undertook?

Answer

Yes. 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.

The self-education expenses you can deduct may be subject to a reduction of up to $250 in accordance with section 82A of the Income Tax Assessment Act 1936.

This ruling applies for the following period:

Year ended 30 June 2019

The scheme commences on:

1 August 2018

Relevant facts and circumstances

You commenced work with your employer several years ago.

You worked full-time in specific role at the time of commencing the studies.

You were allowed leave from your employer, where you were working full-time, to complete a Masters program for a specified period.

You have provided a letter from your employer in relation to your leave of absence.

You took unpaid leave, after first having existing entitlements paid until exhausted (such as annual leave). This did not count as a break in your continuity of service with your employer.

You were also subject to your employer's code of conduct and policies and could not engage in other employment during your studies without written approval by your employer.

You have explained that the course offered a more advanced study of your field as well as the mathematical tools required to conduct rigorous statistical analysis.

You have provided details of the units of study you completed as part of the Masters program.

Following the completion of the Masters, you received a pay rise as you were performing your duties at a more advanced level. You remained employed in the same role as prior to commencing your studies.

You were later promoted from your role to a more advanced role.

You have provided details of the course fees you incurred.

You did not receive any government payments or allowances in relation to the Masters.

You did not receive any scholarship payments or reimbursements in relation to the Masters.

You did not use the Higher Education Loan Program (HELP) to pay the course fees.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

Income Tax Assessment Act 1936 section 82A