Work-Related Self-Education Expenses

Posted On August 6, 2018

Work-related self-education expenses

Work-related self-study expenses are incurred when you follow a course that results in formal qualification; and one that is directly related to your current job. It can be confusing for most to try and find out what can and cannot be legally claimed as an expense.

At OzLedger, our accountants come to the place of your choice to ensure that you are claiming everything you qualify for so that you always receive the largest reimbursement available to you.

The deductible education costs vary per activity category about the earned income of a taxpayer. A taxpayer may incur costs when conducting a study or other educational activity, such as conferences and workshops, including tuition fees, registration fees, student compensation fees, textbooks, trade journals and trade journals, travel and accommodation expenses, computer expenses and stationery.

Deductible costs are those costs incurred in the production of the taxpayer’s current income to be assessed. Currently, a taxpayer can claim unlimited expenses as deductibility when filing a tax return. The government is somewhat nervous that the potential for unlimited claims for a wide range of spending allows some people to enjoy substantial private benefits at taxpayers’ expense.

The government intends to maintain the system whereby employers are not liable for tax on education and training education benefits they provide to their employees unless an employee’s wage is collected to obtain these benefits. This is recognition of the need to encourage employers to continue to invest in the skills of their employees.

Costs for self-education are expenses that are related to courses given by a school, college, university or another provider of training that you undertake personally. To qualify for a tax deduction, you must follow this course to obtain a formal qualification in your current profession, company or company.

Work-related self-education expenses that are related to your work as an employee, and that you incur when you do a course to get a formal qualification from a school, college, university or another place of education.

To claim a deduction for self-education expenses, you must have met one of the following conditions when you incurred the expense:

  • the course maintained or improved a skill or specific knowledge required for your then current work activities
  • you could show that the course was leading to, or was likely to lead to, increased income from your then current work activities, or
  • other circumstances existed which established a direct connection between the course and your then current work activities.

You cannot claim a deduction for self-education for a course that:

  • relates only in a general way to your current employment or profession, or
  • will enable you to get new employment.

You cannot claim any deductions against government assistance payments, including Austudy, ABSTUDY and youth allowance.

Written by ozLedger

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