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Edited version of private advice
Authorisation Number: 1052049600195
Date of advice: 26 October 2022
Ruling
Subject: Deductions - self-education expenses
Question
Are you entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for self-education expenses incurred since commencing your role in Human Resources?
Answer
Yes.
Your self-education expenses incurred since commencing your current employment role 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
This ruling applies for the following periods:
Financial Year ended 30 June 20XX
Financial Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
On XX/XX/20XX, you commenced your Graduate Diploma of Business with a pathway to a Master of Business Administration specialising in Human Resources.
Approximately a month later, you commenced your current role in Human Resources.
Your Job Description states that your role is to 'improve team performance and the employee experience' which includes 'support the execution of the people agenda, implementation of people & culture initiatives, and work across the varied disciplines of HR. This role is consultative and will have you advising on all HR related policies, procedures, legislation and employee matters, as well supporting internal end to end recruitment and the provision of administrative & people systems support.'
The subjects that you are undertaking are:
- LEADERSHIP (FIRST SUBJECT)
- STRATEGIC HUMAN RESOURCE MANAGEMENT
- ORGANISATIONAL LEARNING AND DEVELOPMENT (HR ELECTIVE)
- MANAGING PEOPLE IN A GLOBAL CONTEXT (HR ELECTIVE)
- MANAGING CHANGE (HR ELECTIVE)
- STRATEGIC MANAGEMENT
- MARKETING MANAGEMENT
- OPERATIONS MANAGEMENT
- FINANCIAL MANAGEMENT
- CORPORATE GOVERNANCE
- PROJECT MANAGEMENT
It is important for your role that you understand multiple facets of your employer's operation, and your studies assist in your ability to do this by developing your knowledge and skills in:
• The strategic direction of the organisation to ensure human resources practices and recruitment is in line with the future needs of the organisation.
• Financial management to assist with the development and management of wage budgets.
• Corporate governance and the unique principles of your employer organisation to tailor human resource initiatives and projects.
• Project management to assist you with developing and managing various human resource projects.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1