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Edited version of your written advice
Authorisation Number: 4120051824160
Date of advice: 10 August 2018
Ruling
Subject: Self education expenses
Question
Are you entitled to a deduction for your course fees incurred to study a Master of Business Administration (MBA?)
Answer
Yes.
In your case, you were employed in a paid position in your industry at the time of incurring the course fees. Therefore, these expenses can be characterised as having been incurred in the course of earning your assessable income.
FEE-HELP
Although you have taken a loan under FEE-HELP, this does not preclude you from claiming a deduction for the expenses incurred in relation to this course.
However, it should be noted that you are not allowed a deduction for the repayment of FEE-HELP debt.
Self-education expenses
In certain circumstances you may have to reduce your allowable self-education expenses by $250. However you may have other types of expenses some of which are not allowable as a deduction that can be offset against the $250 before you reduce the amount you can claim for allowable expenses.
Further information on how to work out your self-education expenses is provided in the ATO TaxPack (NAT 0976) and paragraphs 119 to 155 of TR 98/9. This publication and ruling can be accessed by visiting our website at www.ato.gov.au.
This ruling applies for the following period:
Year ended 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You commenced your MBA course.
At the time of commencing the MBA your employer was in a joint venture partnership with your present employer.
After commencing your MBA studies you commenced working with your current employer, because you were working for the former employer on contract basis, and the current employer was offering a permanent fulltime position with the same work type and responsibilities.
At the new employer, your duties and responsibilities are essentially the same as they were with the previous employer.
The course was online, fulltime, which enabled you to still work permanent fulltime.
There was no break in employment between employers.
The MBA qualification was preferred by the employer.
You pay for your course fees via a loan under FEE-HELP.
The MBA qualification was preferred by the employer.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1