If you’re investing in professional development, there’s a chance you can also reduce your tax bill. Self-education expenses are a fantastic deduction—if they meet the ATO’s criteria.
In this blog post, we unpack the rules, the exceptions, and all the details you need to claim correctly and confidently.
What Are Self-Education Expenses?
Self-education expenses are costs incurred when you undertake study or training to improve your skills for your current job. Common deductible expenses include:- Tuition fees
- Textbooks and stationery
- Travel expenses related to attending classes
- Depreciation on study-related equipment like computers
- Internet and phone costs used for your course
When Can You Claim?
- To qualify, your study or training must meet these conditions:
It helps you maintain or improve skills for your current role.
It’s likely to increase your income in your current job. - If your study is to gain qualifications for a new job or to switch careers, it’s considered private and not deductible.
For example:
- If you’re an accountant studying advanced tax strategies, that’s deductible.
- If you’re an accountant studying to become a personal trainer, that’s not.
What You Can’t Claim
Even if your course qualifies, some expenses are off-limits. These include:- Meals and accommodation
- HECS-HELP repayments
- Courses unrelated to your current job
FAQs:
1. I studied during the year and, once I completed my studies, I started a job in that field. Can I claim my study costs?✨ Unfortunately, no. To claim self-education expenses, the course must have been directly connected to your job at the time you were studying. If you studied to qualify for a new role, even if you started working in that field later, the expenses are not deductible.
2. Can I claim travel expenses for attending classes?
✨ Yes, if you’re traveling directly from work to your course and back.
🚫 No, if you’re traveling from home to the course, unless your home is also your primary workplace.
3. What if I study part-time while working full-time? Can I still claim?
✨ Absolutely, as long as the course is directly related to your current job. The deduction applies regardless of whether you’re studying full-time, part-time, or via distance education, provided the criteria are met.
4. My employer reimbursed my tuition fees. Can I still claim the expense?
✨ No, if your employer covers the cost, you can’t claim the same expense as a deduction. However, you might still be able to claim other related expenses, like stationery, depreciation on study tools, or travel costs.
5. I’m self-employed—does the same rule apply?
✨ Yes, self-employed individuals can also claim self-education expenses, provided the study directly relates to maintaining or improving skills for their current business.
6. What if my course is only partly related to my job?
✨ You’ll need to apportion the expenses. For example, if 60% of the course content is relevant to your current role, you can claim 60% of the total costs.
7. How do I calculate depreciation on equipment like my laptop?
✨ The ATO provides guidelines for calculating depreciation. You’ll need to determine the effective life of the asset and use either the diminishing value or prime cost method. Don’t forget to only claim the portion of use directly related to your study.
8. Can I claim self-education expenses for professional development courses, such as webinars or workshops?
✨ Yes, as long as the training is directly connected to your current job. Keep detailed records of costs like registration fees and any associated materials.
