Tax Deduction for Self Education?
Tax Return - Tax Deduction for Self Education?

Tax Deduction for Self Education?

Published on January 1, 2018
Sam Inayat - Bookkeeping, Tax return and BAS expert

Senior Accountant at Top Accountants

Isaac Asimov once said “Self-education is, I firmly believe, the only kind of education there is”

You may be able to claim a deduction for self-education expenses if your study is work-related or if you receive a taxable bonded scholarship.

In this article we will cover followingself-education tax deduction questions:

  1. Eligibility criteria for self-education tax deduction?
  2. List of self-education expense which you can be claim?
  3. Self-education expenses you cannot claim?
  4. What is $250 reduction?

According to the Australian Tax Office (ATO), ‘Self-education’ is defined as courses undertaken at an educational institution, attendance at work-related seminars or conferences, or self-paced learning and study tours (overseas or within Australia).

1. Eligibility criteria for self-education tax deduction?

Self-education expenses are deductible when the course you undertake leads to a formal qualification and meets the following conditions.

The course must have a sufficient connection to your current employment and:

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:

2. List of self-education expense which you can be claim?

You can claim the following expenses in relation to your self-education:

If an expense is partly for your self-education and partly for other purposes, you can only claim the amount that relates to your self-education as a deduction

3. Self-education expenses you cannot claim?

You cannot claim the following expenses in relation to your self-education:

4. What is $250 reduction?

Self-education expenses are broken into five categories. If all of your self-education expenses are 'category A' items then you have to reduce your deduction by $250.

However category 'E expenses' can be used to offset the $250.

While you can't claim a deduction for the following expenses, they can be taken into account in determining whether you have to reduce your overall claim.

for work-related self-education, the second leg of a trip if you went from home to your place of education and then to work, or the other way around

if you receive a taxable bonded scholarship and are not employed by the scholarship provider, travel from home to your normal place of education and back.