Edited version of private advice

Authorisation Number: 1052186421403

Date of advice: 27 October 2023

Ruling

Subject: Self education expenses

Question

Are you entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 for your self-education expenses?

Answer

Yes, having considered your circumstances and the relevant factors, the Commissioner is satisfied there is an identifiable nexus or connection between the MBA course and your employment. Consequently, your self-education expenses incurred since commencing employment are deductible under section 8-1 of the Income Tax Assessment Act 1997. You can find additional information on self-education expenses on our website at ato.gov.au or entering quick code QC 31970

This ruling applies for the following periods:

Year ended 30 June 2016

Year ended 30 June 2017

Year ended 30 June 2018

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You were employed as a manager at Company A during the relevant financial years

Your duties were to manage the development of products and services in the telecommunications industry specific to a group of customers.

You managed a team of 22 people

You had unsuccessfully applied for a promotion to the role of Director on two occasions, and the feedback was that you needed to develop more strategic and commercial skills

You enrolled to study an MBA at a university in 20XX

Your employer supported your application for study support, which included study leave and leave without pay to attend courses you couldn't cover with your usual leave provisions

As part of the course, you were required to travel overseas to complete various units

Your employer did not reimburse you for the expenses you wish to claim a deduction for

You graduated from the MBA course in 20XX

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1