Tax & Education FAQ (Frequently Asked Question)

Can I claim my Self Education costs as a tax deduction?

There needs to be the necessary connection to your current income for these expenses to be claimable as a self-education deduction. This means that the self-education needs to help you in your current job and not be undertaken to open up new job opportunities.

Example 1: ABC is a pharmacy sales assistant who is studying for a pharmacy degree so that she can become a pharmacist. The expenses related to the study are not allowable as the study is designed to open up a new income-earning activity.

Example 2: ABC, a trainee accountant, is studying commerce part-time at university. He is allowed a deduction for the costs associated with the course because it will enable Barry to maintain or increase the specific knowledge required in his current position and to carry out his duties more effectively.

Are my education expenses claimable against AUSTUDY?

In March 2012 legislation was passed and Tax Laws Amendment (2012 Measures No. 1) Bill 2012 now denies any deduction for study expenses for full-time students who are in receipt of Youth Allowance, Austudy or Abstudy. Disallowing a deduction for expenses incurred in gaining or producing a rebatable benefit recognises that taxable government assistance payments are effectively tax-free and individuals should not be able to receive an additional benefit by way of a tax deduction against their assessable income for any expenses they incur in qualifying for the payment.

I was unemployed during the year. Can I claim money I spent looking for a job as a tax deduction?

The tax office ruled that deductions for expenses incurred job seeking are not deductible as there is no income to offset them against.

Can I claim the costs of seminars as an education tax deduction?

The costs associated with seminars are tax deductible provided that they relate to your current income producing activities.

At Indus Accounting nothing is too complicated. We can assist you with any number of tax questions. To make an appointment just call 0423 264 003 / 0412 634 517


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