Self-education expenses

Transcription

1 Guide for working students Self- expenses If you work and study, some expenses may be tax deductible For more information visit

2 WHAT ARE SELF-EDUCATION EXPENSES? The self- expenses we discuss in this publication are for courses provided by a school, college, university or other place of. AM I ELIGIBLE TO CLAIM A DEDUCTION FOR MY SELF-EDUCATION EXPENSES? You can claim your self- expenses as a work-related deduction if you can show that when you incurred the expense, the study: primarily maintained or improved a skill or specific knowledge you principally used in your work activities at that time, or was leading to, or was likely to lead to, increased income from your work activities at that time. If your study is to help you get a new job or start a new income-earning activity, you must meet at least one of the conditions in order to claim your self- expenses for example, you agree in writing with your employer to study subjects relevant to your employment (such as a cadetship, traineeship or apprenticeship). In this instance, the study is likely to both maintain or improve a skill you use at work as well as lead to increased income from that work. EXAMPLE Carmel is studying to become a computer programmer. To support herself, she works as a sales assistant in a computer store. While some knowledge of computer programming may be useful in her work as a sales assistant, Carmel can t claim her self- expenses because neither of the conditions are satisfied. EXAMPLE Kenny is employed as a carer. He is studying a Bachelor of Nursing so he can become a registered/ qualified nurse. Kenny s employer requires him to apply the skills and knowledge learnt from his studies to his job as a carer; that is, to dispense medications once he has his medication administration endorsement. Kenny can claim his study expenses as his studies are primarily used in his work activities. 2 SELF-EDUCATION EXPENSES

3 EXAMPLE Amie was working part time at a local takeaway while studying law. During her second last year, she gained a position at a small law firm as a trainee on the condition she completes her studies. Amie can claim her law study expenses after she starts her traineeship. However, she cannot claim the fees she paid before gaining her new position, even though the fees were for study she did after starting her new job. WHAT CAN YOU CLAIM? General expenses You can claim expenses such as course fees, textbooks, stationery, photocopying and student union fees. Decline in value You can claim the decline in value (depreciation) of your computer. The effective life of a: lap top is 3 years, and desk top is 4 years. Remember, if you used your computer for other purposes, the amount you can claim will depend on the amount you used it for self- purposes for that year. For example, if you use your computer 40% of the time for self- purposes and 60% for other purposes, then you can only claim 40% of the decline in value as a self- expense. To find out which method to use when calculating your decline in value, see How do we help you? on page 5. Travel expenses You can claim expenses for travel between: your home and your place of your place of and home your workplace and your place of, and your place of and your workplace. 3 SELF-EDUCATION EXPENSES

4 Home Home However, you can only claim the first leg of each trip if you travelled: from your home to your place of and then to your workplace, or from your workplace to your place of and then home. Home Home MEALS You can claim the cost of meals if participating in the self- meant you had to be away from your home for one or more nights. In some circumstances you may need to reduce the total of your self- expenses claim by up to $250. For more information, refer to reducing self- expenses, visit and select For individuals Individuals home page Study Self- expenses Claiming self- expenses specific expenses. WHAT CAN T YOU CLAIM? You can t claim: self- expenses you incurred if the only income you received was from youth allowance, austudy payment, ABSTUDY or similar payments providing financial assistance repayments you made on loans you have with the Student Financial Supplement Scheme (SFSS), or Higher Education Loan Programme (HELP) the cost of meals, except where described above. 4 SELF-EDUCATION EXPENSES

5 WHAT HAPPENS IF YOU MAKE A MISTAKE? If you make a mistake in your self- expenses claim, let us know as soon as possible so we can help you correct it. HOW DO WE HELP YOU? Each of the following products will help you complete D4 -related self- expenses on your tax return. Self- eligibility decision tool This decision tool can help you work out if you are eligibility to claim a deduction for self- expenses relating to your work. To use the tool visit and select For individuals Individuals home page Rates, calculators & tools For individuals other tools Self- eligibility tool. Self- expenses calculator The self- expenses calculator will give you an estimate of how much you can claim for work-related self- expenses. To use the calculator, visit and select For individuals Individuals home page Rates, calculators & tools For individuals Calculators related expenses. Claiming self- fact sheet To obtain a copy of this publication, visit and select For individuals Individuals home page Study Self- expenses. Decline in value calculator The decline in value calculator will give you an estimate of how much you can claim for a depreciated item such as a computer. To use the calculator, visit and select For individuals Individuals home page Rates, calculators & tools For individuals Calculators Other calculators. 5 SELF-EDUCATION EXPENSES

6 HOW CAN YOU CLAIM YOUR WORK-RELATED SELF-EDUCATION EXPENSES? Complete D4 -related self- expenses on your tax return. To complete your tax return: Use e-tax Download e-tax from our website at e-tax is free, safe and secure. Most refunds are paid within 14 days, and it is available to the vision impaired using screen-reader software. Use TaxPack Prepare your tax return on paper. TaxPack is available from newsagents from July to October and from our shopfronts. See a tax agent A list of registered tax agents can be found at MORE INFORMATION For more information: visit our website at phone us on phone our publications distribution service on to order a publication visit for a list of registered tax agents, or call the Tax Agent s Board on If you do not speak English well and want to talk to a tax officer, phone the Translating and Interpreting Service on for help with your call. If you have a hearing or speech impairment and have access to appropriate TTY or modem equipment, phone If you do not have access to TTY or modem equipment, phone the Speech to Speech Relay Service on COMMONWEALTH OF AUSTRALIA 2008 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney-General s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at PUBLISHED BY Australian Taxation Office Canberra February 2008 NAT [JS 9971] The information in this publication is current at February 2008.