Are you studying for a qualification that is relevant to your current work? You could be eligible to claim your self education expenses in your tax return.
So the first thing to know is that your study must be directly related to your current employment. What does that mean? You must meet one of the eligibility criteria set by the Tax Office:
- You are improving your current qualifications for the job you already have. For example, someone with a Bachelor of Commerce and working as an Accountant may be doing a Masters of Tax.
- You are improving your knowledge or skills for your current job. For example, you make deliveries for your current employers in a van. You undertake a course to obtain your heavy vehicle license.
- You’re a trainee and are undertaking a course that forms part of that traineeship. For example a trainee florist undertaking TAFE qualifications in floristry.
- You can show that your course, qualification or degree will lead or is likely to lead to an increase in employment income. For example, a teacher who will automatically get a pay increase as a result of the course they are completing.
You can’t claim if the study is in a completely unrelated field, even if you anticipate earning income from that profession in the future. For example, an accountant can claim a course in floristry just because you want to become a florist in the future.
Once you have established that the course you are studying is eligible, there are wide range of deductions you can claim. Common items include:
- Course and tuition fees, including those payable under FEE-HELP but not under HECS-HELP,
- Stationery and textbooks
- Student service and union fees
- Equipment depreciation and repairs
- Travel between places of work and study
- Phone calls
- Internet usage (only the portion related to study)
- Trade, professional and academic journals
- Decline in value for assets (eg computer) costing more than $300
- Repairs and purchase of equipment costing $300 or less.
The first $250 of your self education expenses are not deductible. If you incur child care costs or travel expenses from home to place of study these are not deductible. However they can be used to offset the $250 reduction in your other expenses.
The normal three “golden rules” of claiming a tax deduction of course apply:
- You must have spent the money yourself and have been reimbursed.
- It must be directly related to earning your income.
- You must have a record to prove it.
If you need help with claiming your self education expenses, I offer a FREE 30 minute initial consultation. You can easily book online here and I look forward to helping you sort your finances!