Investing in your education can have long-term benefits, but did you know that you may be able to claim some of those costs when filing your tax return? If you’re working and furthering your education to improve your skills or boost your income, you might be eligible to claim a deduction for self-education expenses. Here’s what you need to know about claiming these expenses on your tax return, based on guidance from the Australian Taxation Office (ATO).

 

tax time claim education expenses

 

What Are Self-Education Expenses?

Self-education expenses include costs related to courses, seminars, or professional learning that directly relate to your current job. These expenses can range from tuition fees to the depreciation of assets you use for study purposes, such as a computer.

Examples of self-education expenses include:

  • Fees for attending courses at educational institutions (e.g., universities, TAFE)
  • Professional development courses offered by industry organisations
  • Work-related conferences or seminars
  • Self-paced learning and study tours (in Australia or overseas)

Who Can Claim Self-Education Expenses?

You can claim self-education expenses if your studies directly relate to your current employment. For example, if you’re enrolled in a course that improves your skills or knowledge for your job or increases your income, you may be eligible for a deduction.

To qualify, the expenses must:

  • Maintain or improve the skills or knowledge required for your job
  • Lead to an increase in your income from your current role

However, you cannot claim self-education expenses if:

  • The study is only generally related to your work (e.g., you’re working part-time as a sales assistant but studying full-time fashion photography)
  • The course enables you to switch careers or seek new employment (e.g., moving from being a nurse to a doctor)

Don’t forget to take advantage of the ATOs helpful Self-Education Expenses Calculator

Eligible Expenses

If your self-education expenses meet the eligibility criteria, you can claim deductions for a wide range of costs, including:

  • Tuition and course fees (including FEE-HELP or VET Student Loans, though repayments aren’t deductible)
  • Textbooks, stationery, and equipment repairs
  • Internet and phone bills, if related to your studies
  • Depreciation of assets like computers, desks, and chairs used for your study
  • Car and other transport costs if you travel between work and your place of education
  • Accommodation and meals if your course requires overnight travel

Ineligible Expenses

Some costs cannot be claimed, such as:

  • Repayments of FEE-HELP or VET Student Loans
  • Study-related expenses where the course isn’t directly related to your current employment
  • Course fees paid by your employer or if you’re reimbursed

How to Apportion Expenses

If you use certain assets, like a computer, for both private and work-related study purposes, you need to apportion your claim. For instance, if you use your laptop 80% of the time for study and 20% for personal use, you can only claim 80% of the depreciation as a deduction.

Keeping Records

It’s crucial to keep detailed records to support your claims, such as receipts, invoices, and a log of the percentage of time you use assets for study. The ATO may ask to see these records, so it’s important to stay organised.

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