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Claim your course as a tax deduction before 30 June and benefit from lower course fees

Written by on June 26th, 2015.      0 comments

It's almost the end of the financial year again and as we all prepare to submit our return for this financial year, a question we often get asked is "Can I claim the course as a tax deduction?".  

If you are eligible to claim the cost of the course as a tax deduction, it can reduce the overall cost of the course to you.  

If you really want to improve your English communication skills, reduce your accent or learn an Australian accent, but your employer is not able to fund your course, or you find yourself unable to meet the course fee, remember you may be able to claim the cost of the course as a tax deduction.

How does it work?

A tax deduction can be claimed when you undertake a personal development course that includes elements that can be directly related to your current income earning activities.  Provided you pay for the course in full prior to the end of the financial year (30 June) you can submit your receipt to your accountant for processing.  

How do I know if the I am eligible to receive a tax deduction?
If your studies relate to income earning activities, you may be able to claim a deduction for some of the expenses.

To claim a deduction for self-education expenses, you must have met one of the following conditions when you incurred the expense:

  • the course maintained or improved a skill or specific knowledge required for your then current work activities
  • you could show that the course was leading to, or was likely to lead to, increased income from your then current work activities, or
  • other circumstances existed which established a direct connection between the course and your then current work activities.

So if you are considering in enrolling in a course to improve your English communication skills, keep in mind the potential tax deduction, and start improving your skills today.   

If you are an international professional working in Australia, talk to Australia English Institute about professional development courses that can help you.  

Speak to your accountant or the ATO for more information about receiving a tax deduction.