Self-education expenses are deductible to a taxpayer where the expenses are directly connected with the taxpayer’s current income-earning activities. In circumstances a deduction is allowable:
- Taxpayer’s income-earning activities relate to the basis to maintain or improve your skill or knowledge of employment
- Self-education study objectively leads to an increase in taxpayer’s income from their current income-earning activities
Circumstances where self-education expenses are not allowable:
- First $250 of self-education expenses are not deductible.
- Expenses that relate to improving or maintaining skill and knowledge are not of capital nature
- In order to obtain new employment outside of your current job.
- Opening up a new income-earning activity similarly to above (Includes studies relating to a particular profession, occupation or field of employment in which the taxpayer is not engaged with the field yet).
Types of self-education expenses:
- Tuition, or course fees for attending an education institution, work related conference or seminar, including student union fees
- Cost of professional and trade journals, text books and stationary
- Transport expenses, including fares, and running costs associated with a motor vehicle.
- Taxpayer’s home and their place of education
- A taxpayer’s education and their place of home
- Work and a taxpayer’s place of education
- Taxpayer’s place of education to work
- Only the first leg of the each trip is deductible where a taxpayer travels.
- Taxpayer is away from home. Overnight accommodation and meal expenses are incurred on study tours, on work related conferences or seminars or attending educational institutions
- Interest incurred on borrowed monies, where the funds are used to pay for self-education expenses