- April 20, 2019
You may be able to claim a deduction for self-education expenses if your self-education relates to your current work activities as an employee. In some circumstances you have to reduce the amount of your claim by $250.
You cannot claim these expenses if the course is undertaken to secure a new job or results in a new income earning activity. Please note that CPD (Continuing Professional Developments) activities are not claimed as self-education expenses.
Self-education expenses are deductible when the course you undertake leads to a formal qualification and meets the following conditions.
The course must have a sufficient connection to your current work activities as an employee and:
- maintain or improve the specific skills or knowledge you require in your current work activities or
- result in, or is likely to result in, an increase in your income from your current work activities.
You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current work activities even though it:
- might be generally related to it, or
- enables you to get new employment.
Expenses you can claim
You can claim the following expenses in relation to your self-education:
- accommodation and meals (if away from home overnight)
- computer consumables
- course fees
- decline in value for depreciating assets (cost exceeds $300)
- purchase of equipment or technical instruments costing $300 or less
- equipment repairs
- home office running costs
- internet usage (excluding connection fees)
- parking fees (only for work-related claims)
- phone calls
- student union fees
- student services and amenities fees
- trade, professional, or academic journals
- travel to-and-from place of education (only for work-related claims).
Some travel for journeys cannot be claimed, but you may be able to offset the cost of these journeys against the $250 reduction.
If an expense is partly for your self-education and partly for other purposes, you can only claim the amount that relates to your self-education as a deduction.
Expenses you can’t claim
You cannot claim the following expenses in relation to your self-education:
- repayments of Higher Education Loan Program (HELP) loans (although the fees paid by some HELP loans are)
- Student Financial Supplement Scheme (SFSS) repayments
- Student Start-up Loan (SSL) repayments)
- Trade Support Loan Program (TSL) repayments
- home office occupancy expenses
- meals (unless sleeping away from home).
Please refer to ATO Website for further details. We can also help you to work our deductions for self-education expenses and your overall tax related requirements.