Yes, you can claim a deduction for self-education expenses if there is a close connection between the course and your work activities at that time. You can claim a deduction if the course maintained or improved a skill or specific knowledge required for your then current work activities, or you could show that the course was leading to, or was likely to lead to, increased income from your then current work activities.
However, you cannot claim a deduction for self-education if the course relates only in a general way to your current employment or profession, or the course will enable you to get new employment.
Self Education Tips and Traps:
- To make working out your deductions easier, make sure you keep records throughout the year¹.
- You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment even though it might be generally related to it, or enables you to get new employment.
Lets look at Louis and his compure course.
Louis is a computer science student. His studies are system analysis, software design and programming. Louis also works at the university laboratory installing computers. His course and job are only very generally related. The work only requires a low level of computer knowledge which Louis already had before starting his employment. The high-level professional skills Louis acquires from the course are well beyond the skills he requires for his current employment. Consequently, Louis cannot claim a deduction for his course because it does not maintain or improve his specific knowledge or skills in his current job, relates in only a general way to his current employment and will enable him to get new employment.
Get that Tax Return Started now.... gotax.com.au Australia's best online tax system
Stay informed and Subscribe
Don't miss out and be the first to know about the latest news in Taxation
You have successfully subscribed to our Blog - happy reading!