The Federal Budget revealed a change in the way self-education expenses can be claimed. Previously, the first $250 of the expense was non-deductible, e.g. $1000 paid on course fees would result in a $750 tax deduction. This has now been scrapped, making all self-education expenses tax deductible. But of course we all know that tax law is not black and white and there are still hoops to jump through to make a legitimate claim. The study that you are undertaking must relate to your current employment to the extent that a nurse cannot claim self-education expenses to become a doctor – it really has to relate to only the current taxable income that you have made in the year of claiming.

The expenses that can be claimed include course and tuition fees, internet and computer costs, stationery and office expenses, textbooks and resources, student union fees and travel costs if travel is required for classes, exams, etc. You would also need to be able to show that the study that is being undertaken maintains or improves the specific skills or knowledge you require in your current employment activities or that it results in or is likely to result in, an increase in your income from your current employment activities.

If you are an employer and choose to pay for your employees to undertake study then that can be claimed as a business expense, however fringe benefits tax would apply if the employee wouldn’t usually be able to claim the costs as a deduction if they were to pay for it themselves. If you are unsure about this and what can be provided for your employees or what can be claimed as self-education expenses then please contact our office.