"Which Work-Related Learning Expenses Can Be Claimed for Tax Deduction?" ③
"Which Work-Related Learning Expenses Can Be Claimed for Tax Deduction?"
Regarding the tax deduction for tuition fees
Self-education expenses related to work refer to the fees incurred when undertaking study courses related to your current job at a recognized educational institution such as a school, college, university, or other accredited educational locations.
Tax Fact
According to the ATO (Australian Taxation Office), if you are working and studying simultaneously, and the course you are undertaking has sufficient connection to your current job, you may be eligible for a tax deduction for your self-education expenses if:
It maintains or improves specific skills or knowledge required in your current job, or
It has the potential to increase your income from your current job.
As per ATO guidelines, if a course is too general for your current income-producing activity, there won't be a necessary connection between the self-education expenses and your income. In such cases, these expenses cannot be claimed as deductions.
Important Points to Note
The ATO has strict rules regarding the deduction of self-education expenses. The following expenses can be claimed as deductions if your course has sufficient connection to your work:
Accommodation and meals, only when the course requires you to be away from home for one or more nights.
Computer expenses, including loan interest.
Depreciation of computers, professional libraries, desks, chairs, filing cabinets, bookshelves, calculators, technical instruments, tools, and other equipment (such as desk lamps).
Photocopying.
Incidental expenses if you have a dedicated room for work-related study, such as heating, cooling, and lighting during study periods.
Self-education expenses paid through the OS-HELP (Overseas Study-Higher Education Loan Program) loan.
Stationery.
Student union fees.
Textbooks, professional, and industry journals.
Travel expenses between your home (or workplace) and the place of study.
Tuition fees, including those payable under the FEE-HELP scheme.
Note that if you have a room specifically used for work-related study, you can claim a rate of 67 cents per hour, plus the decline in value of office furniture and equipment, instead of claiming personal heating, cooling, lighting, internet, consumables, and telephone expenses.
The following items are not eligible for tax deductions:
Accommodation and meals related to daily living expenses.
Repayment of debts under loan schemes such as HECS-HELP, FEE-HELP, OS-HELP, and SFSS (Student Financial Supplement Scheme).
Self-education expenses paid through the HECS-HELP scheme, such as tuition fees.
Travel expenses for the final leg between home, workplace, and the place of study.
"Guide to Claiming Tax Deductions for Tuition Fees: Maximize Savings and Reimbursements"
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