Paying for Self-Education? Heres Everything You Can and Cant Claim

By definition, self-education is an expense you pay to upgrade your skills while working in a job. This covers everything from the course fee to money spent on books, stationery, equipment, and other supplies. In addition to performance at work, self-education expenses towards skill enhancement or promotion relating to the current job can also be claimed as a deduction.

What Self-education Expenses are Eligible for Deduction Claims?

Usually, the claimable self-education expenses relate to the amount you spend for skills related to your current job. These include:

• Tools, supplies, and equipment: If you are spending any amount on buying tools, equipment, and other supplies for the course, you can claim a deduction. This covers expenses towards safety glasses, shoes, boots, uniform, and protective gear among others.
• Courses Accepted by the Employer: Your employer’s approval can play a major role in supporting a deduction. If the course relates to your current job responsibilities and the employer has been accepting it for similar positions, you can be eligible for a claim.
• Self-education for a New Business or Job: If you plan to migrate to a different career or start a new business, the course you take for the purpose isn’t eligible for a deduction claim. If you plan for any such self-education and get a new job as a result, the next investment you make towards improving your skills for the job will be eligible again.

While self-education relates to improving your skills for a better salary, not everything counts. You can consult the taxation officer or professional accountants in Toongabbie for the best advice.