Edited version of private advice

Authorisation Number: 1052184516878

Date of advice: 27 October 2023

Ruling

Subject: Self-education expenses

Question 1

Are you entitled to a deduction for self-education expenses, which were incurred whilst you were employed as a Team Lead with your employer, in association with completing a Master of Digital Health and Data Science at University under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

Yes.

Your self-education expenses are deductible under section 8-1 of the Income Tax Assessment Act 1997 to the extend the expenses have sufficient connection to your income earning activities. Further information about self-education expenses can be found in TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or person in business.

You can claim the self-education expenses at the time you incurred the expense. The Commissioner's view of the meaning of 'incurred' for the purposes of section 8-1 is set out in Taxation Ruling TR 97/7 Income tax: section 8-1 - meaning of 'incurred' - timing of deductions. To incur an expense means that you must actually pay, or be obliged to pay, for the goods or service.

Consequently, the expenses will be deductible in the 20XX and 20XX year, based on when the expenses were incurred while you were employed as a team lead in client service with your employer.

This ruling applies for the following periods:

Year ending 30 June 20XX

Year ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You commenced your employment with your employer in XX 20XX and you performed various roles within the organisation.

Your most recent role with your employer is as a team lead in client service. You were working in this role from XX XX 20XX to XX 20XX.

Your current qualifications to date include qualifications from overseas universities.

The study undertaken

You started your Master of digital health and data science at a university. You commenced study on the XX XX 20XX and are expected to complete your Masters in XX 20XX.

The Master of digital health and data science includes the following courses and costs, all of which were incurred prior to you ceasing your employment as a Team Lead with your employer.

•                     Health technology evaluation $X

•                     Applied healthcare data science $X

•                     Clinical ethics $X

•                     Foundations of digital health $X

•                     Digital health innovation and implementation $X

•                     Digital health and data science project A $X

•                     Digital health and data science project B $X

You did not receive any Austudy, Abstudy or an allowance in support of doing your course. You have incurred the full expense and have paid these expenses.

Support from your employer

You have provided a letter from your employer outlining their support in pursuing relevant courses and certifications to enhance your skills and knowledge.

Your employer acknowledges the following:

•                     the courses you undertook directly relate to your current role at XX XX and have significantly contributed to your professional development.

•                     the skills and knowledge gained through these educational pursuits have enhanced your ability to perform your job effectively to service the XXX projects and have benefited their organisation.

•                     Your employer did not reimburse you for pursuing your degree.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1