Edited version of private advice

Authorisation Number: 1052000131406

Date of advice: 27 July 2022

Ruling

Subject: Work related expenses - self-education expenses

Question

Can you claim a deduction for costs incurred for a masters degree in the medical field as a self-education expense?

Answer

Yes. The self-education expenses you have incurred have a connection with the earning of your assessable income. The course is tailored to work in the medical industry and the costs and outgoings are deductible under section 8-1 of the Income Tax Assessment Act 1997, to the extent they have not been reimbursed.

This ruling applies for the following periods:

Year ending 30 June 20XX

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You have been employed at a medical facility since 20XX.

You were recently promoted to a management role.

Your employer has encouraged you to gain further education to develop you in your role.

You enrolled in a course that is tailored to your position

You are studying the degree in order to better perform in your job and to improve skills.

You have stated that on completion of the degree there is a likelihood it will lead to an increase in pay.

The costs you incur in relation to your course, will be claimed over multiple income tax years.

Your employer confirmed that:

•         The company is not reimbursing any expenses.

•         You are employed full time.

•         Study leave will be granted for exams.

Your employer has supplied a written document stating that they support your study and that you will be granted an increase in income as well as additional responsibility and duties after you complete your studies.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1