If you are studying to advance your current career, you can get big tax breaks for the cost of your studies!  Please read on or send this post to someone you know who is studying.

What are Self-Education Expenses?

Self-Education Expenses include courses provided by a school, college, university or other training providers. To be eligible for a tax deduction, you must take this course to gain a formal qualification in your current profession, business or trade.

The finer details

You can only claim if:

• There is a direct connection between the course you studied and your employment at the time your expenses are incurred. According to the ATO you must satisfy one of these four conditions:

1. You are upgrading your qualifications for your current role.
2. You are improving your skills or knowledge used in your current role.
3. You are a trainee and the course you take forms part of the traineeship.
4. You can show the course you were taking led, or was likely to lead to, an increase in your current salary.

You cannot claim if your studies are intended to help you get:

• A different job, or
• Money from a new income-earning activity (such as starting a new business);

Deductions can include:

• Textbooks
• Stationery
• Student union fees
• Course fees
• Some travel expenses; and
• Depreciation of equipment used to study

Important things to note

Currently, the ATO requires the first $250 of self-education expenses to be non-deductible if your total expenses consist only of textbooks, stationary, fees and travel. Unsure whether you need to reduce your claim on this year’s tax return? Contact us on admin@etax.com.au and one of our accountants can provide you with tailored advice based on your personal circumstances.

Remember, if your total claim for all expenses/deductions (this includes self-education, motor vehicle, travel, laundry etc.) totals more than $300, you must keep written evidence to prove your claim. So remember to keep those receipts, diaries and logbooks up to date!