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Re: Self Education Expenses and Commonwealth Supported Place (CSP)

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Initiate

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I'm self employed as a sole trader and I am currently studying a bachelors degree directly related to my work. I know that HECS-HELP repayments are not eligible to count as a self-education expense. I wish to pay my fees upfront so that I may claim my education expenses as a tax deduction (asuming I meet eligibility requirements). As I am an Australian citizen I am eligible for a Commonwealth Supported Place (CSP) where the government subsidises the cost of the of my tuition for paying upfront. If I have a CSP, would that make me ineligible for the self-education tax deduction? If this is the case, I will not choose to pay the full unsubsidised fees and claim the deduction as the expenses of the unsubsidised fees would outweigh the benifits of the tax deduction.

 

Additionally, I would like to know; is there a limit on how much you can claim for the self-education cost tax deduction?

 

ATO page for Education and Study: https://www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Education-and-study/?page=1#Worki...

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Taxicorn

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Whether you pay upfront or not for your heccs/help debt you are still able to claim self-education costs as long as there is a direct nexus between the course and your current employment.

 

With or without a Heccs/Help debt you can still claim Self-Education Costs.

There is no limit as long as you can provide proof.

 

Heccs/Help Fees can not be claimed as a self-education deduction.

 

There are quite a lot expenses that you can claim and are outlined under the heading "Self-education expense categories" in the link that you provided.

 

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Taxicorn

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Whether you pay upfront or not for your heccs/help debt you are still able to claim self-education costs as long as there is a direct nexus between the course and your current employment.

 

With or without a Heccs/Help debt you can still claim Self-Education Costs.

There is no limit as long as you can provide proof.

 

Heccs/Help Fees can not be claimed as a self-education deduction.

 

There are quite a lot expenses that you can claim and are outlined under the heading "Self-education expense categories" in the link that you provided.

 

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Awesome, thank you!

 

I believe I would be eligible for the deduction as my course satisfies this condition "you are improving specific skills or knowledge used in your current employment – for example, a course that will allow you to operate more machinery at work".

 

My course allows me to devlop my skills so that I can perform my job more proficiently. Designing software is a critical part of my work and my course (Bachelor of Computer Science) directly relates to that (as I have chosen mainly software engineering electives). So I guess a document showing the fees I paid and a statement outlining how my course improves my skills and knowledge related to my work should be sufficient proof.

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Taxicorn

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Sounds like it would be ok.

Don't forget all the other deductions that you can make also...