Tax Time! Education Expenses You Can Claim

Apr 28, 2021 | Australian College

Are you working and also considering study?

If you enrol in a course before 30th June, and the course is sufficiently related to your employment, you may be able to claim the course and certain related costs as a self-education expense.

With tax time just around the corner, and with 20% off* all course fees, right now is a great time to tackle your goals and enrol in a Nationally Recognised or Personal Development course.

What may be claimable?

computer consumables and equipment repairs purchase of equipment or technical instruments costing less than $300 home office running costs fares stationery textbooks
course fees accommodation and meals (if away from home overnight) interest phone calls student union fees trade, professional, or academic journals
decline in value for depreciating assets (cost exceeds $300) parking fees (only for work-related claims) internet usage (excluding connection fees) postage student services and amenities fees travel to-and-from place of education

How much can you save?

How much you will save depends on your tax rate and the course cost.

Here’s a guide:

  • The FNS40217 Certificate IV Accounting & Bookkeeping course is pay-in-full $3,500.00
  • After 20% off promotion, this is reduced to $2,800.00
  • If you are taxed at an average rate of 32.5% your course is further reduced to $1,890.00
  • That’s a total saving of $1,610.00

To get ahead of your competition in the employment stakes, you need to demonstrate that you are prepared to continue your education, as often as possible. An education course is a great way of ensuring you keep up to speed with industry developments relating to your field, and with the added bonus of making you look motivated to any potential employers.

To help encourage employers and employees alike to undertake educational programs, there are a number of self-education tax deductions available, which include courses undertaken at educational institutions (whether leading to a formal qualification or not), attendance at work-related seminars, or industry-specific conferences.

The expenses for self-education can be deducted provided there is a direct and provable link between the course undertaken, and how you derive your income.

You will need to satisfy any of the following tests to be entitled to a tax deduction:

The expense has a relevant connection to your current income-earning activities (i.e. the course must be relevant or incidental to how you derive your assessable income).

The self-education program being undertaken enables you to maintain or improve the skills or knowledge necessary to carry out your income-earning activities.

Self-education leads to or is likely to lead to, an increase in your income from your current income-earning activities in the future.

Are you eligible for this reduction?

  • You must be a student at Australian College and paying in full for your course fees to fully claim this financial year
  • You must be employed at the time of enrolment, and the course must be sufficiently related to this employment
  • The course must be 12 months or less to fully claim this financial year

* You may have to reduce the claim by $250

June 30th is approaching quickly, so enrol now, keep a copy of your receipt and save significantly! For more information on claiming self-education expenses visit the Australian Taxation Office website here.

Please note: The information in this blog is general advice only and is not intended to be financial or legal advice. You should obtain your own independent advice in relation to tax deductions that may be available to you.

Click here to check if you meet the eligibility requirements.

Claim your tax invoice, Enrol Now!


You may also like