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Educational expenses course fees

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Newbie

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Replies 7

Hi,

 

I want to pursue in studying a MBA degree i am currently in the management field and was wondering how does course fee work with tax deduction.

 

For example if i am on a 100k salary and my course fees are 10k does that mean my taxable income is 90k?

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Taxicorn

Replies 4

First of all, there has to be a direct nexus between the course and your current paid employment.

 

There can be no claim if you are doing it to get another job.

 

If the study of a subject of self-education objectively leads to or is likely to lead to, an increase in a taxpayer's income from his or her current income-earning activities in the future, then the self-education expenses are allowable as a deduction.

 

There are many other things that can be claimed, have a read of this

 

Basically, everything claimed is just a deduction and lowers your taxable income.

 

7 REPLIES 7

Best answer

Taxicorn

Replies 4

First of all, there has to be a direct nexus between the course and your current paid employment.

 

There can be no claim if you are doing it to get another job.

 

If the study of a subject of self-education objectively leads to or is likely to lead to, an increase in a taxpayer's income from his or her current income-earning activities in the future, then the self-education expenses are allowable as a deduction.

 

There are many other things that can be claimed, have a read of this

 

Basically, everything claimed is just a deduction and lowers your taxable income.

 

ATO Certified

Community Support

Replies 1

Hi @chump,


Welcome to our Community.


The information provided by @macfanboy is correct, and you may also like to refer to the tax wiki How do deductions work?.


Hope this helps, SueO

Newbie

Replies 0

Thank you for the reply.

 

Forgive my ignorance if the course does apply and is related to my work is there a maximum amount that i can claim as deduction?

 

If i did 2 courses that were 5k each can i deduct 10k as deductions on tax return?

 

As university courses are quite expensive.

Newbie

Replies 3

Thank you for the reply.

Forgive my ignorance if the course does apply and is related to my work is there a maximum amount that i can claim as deduction?

If i did 2 courses that were 5k each can i deduct 10k as deductions on tax return?

As university courses are quite expensive.

Community Support

Replies 2

Hi @chump,

 

Thanks for the follow up!

 

If you meet the eligibility requirements to claim a self-education expense you can claim the total expense you incurred as a deduction for the relevant financial year. You can also find information on deductions you can claim for specific occupations and industries on our website.

 

Once you lodge your return, we'll process all the information you reported and calculate the outcome. You can find general information on How do deductions work? on our Community!

 

Thanks, JodieH.

 

Newbie

Replies 1

Thanks for the reply.

 

Can you confirm if my below example is correct? or can show me an example?

 

Example
If i did 2 courses that were 5k each can i deduct 10k as deductions on tax return?(PLEASE note these courses meet the criteria for my work)

Community Support

Replies 0

Hi @chump

 

If the course fees are $5k each and you pay both fees within the same financial year, then yes you can claim $10k as a deduction in your tax return as long as it meets the criteria for self-education expenses. You can find self-education expense you can claim here.

 

Keep in mind the calculation of deductions and how they apply to your tax return in our guide How do deductions work?

 

Thanks, JodieH. 

 

 

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