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Edited version of private advice
Authorisation Number: 1052333986204
Date of advice: 21 November 2024
Ruling
This private ruling was revised following issue. This edited version has therefore been replaced with the edited version of the private ruling with the authorisation number of 1052338158953.
Subject: Self education expenses
Question 1
Are you entitled to a deduction for course fees incurred in association with completing a Master of Business Administration (MBA) under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer 1
Yes. It is accepted that undertaking the MBA will enable you to maintain and improve the skills and knowledge that you exercise in carrying out your income earning activities.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are currently employed full time as an XXX.
You will undertake an MBA to improve the professional knowledge and skills you require to effectively deliver on and expand your responsibilities as a XXX with your employer.
The MBA core subjects include:
• Business Essentials
• Leadership
• Financial Accounting
• Data Analysis
• Managerial Economics
• Current Business issues
• Operations
• Managerial Ethics and the Business Environment
• Managing People
• Marketing
• Finance
• Business Strategy
• MBA Capstone.
In your role, you are responsible for spearheading continuous improvement initiatives aimed at refining and optimising the operations inherent to your area of work.
You engage with a variety of systems, structures, and stakeholders across the research, contracting, finance, and enterprise domains of your employer.
You utilise numerous business administration skills, but also cultivate a macroscopic comprehension of your employer's business components and their integration.
Your employer:
• provides paid leave for employees to attend course examinations for approved courses that directly relate to their employment
• has provided a letter of support showing the connection between your employment and the course being undertaken.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1