What you need to know about claiming Self-education expenses

Have you undertaken studies at an educational institution, attended conferences/seminars or commenced an online learning program this financial year?
If so, do you know you may be be able to claim self-education expenses in your 2017 tax return?

Self-education expenses may be tax deductible if there is a direct link between your assessable income and the educational activity and satisfies one of the following:
•    The course enables you to maintain or improve the skills or knowledge necessary to carry out your current employment
•    The course leads to, or is likely to lead to, an increase in your income from your current employment activities

You cannot claim a deduction for self-education expenses if the course enables you to:
•    Gain new employment
•    Gain employment in a new field
•    Open new income earning opportunities in the future
These are considered by the ATO to be obtained at a point too soon to earning income.

If your course is deductible as per above you may be able to claim the following expenses:
•    Course fees
•    Textbooks, professional and trade journals
•    Stationery and postage
•    Travel – flights, motor vehicle kilometers, parking, accommodation & meals
•    Electronic items, office equipment & furniture (items above $300 are subject to depreciation)
•    Telephone & internet
•    Home running expenses
Currently, the ATO requires the first $250 of self-education expenses to be non-deductible if your total expenses consist only of textbooks, stationary, fees and travel. If part of your self-education expenses are for personal or other purposes they must be apportioned to an allowable deduction component.

Expenses you can’t claim
•    Loan repayments such as Hecs-Help, Fee-Help and SFSS
•    Home office occupancy expenses such as electricity, gas & water
•    Meals if you’re not sleeping away from home
•    Certain travel expenses

If your total deductions exceed $300 you must keep written evidence to substantiate your claim.

For more information call Optima Partners at 0862672200 to provide you with tailored advice.