The ATO has removed the $250 reduction on self-education expenses as of July 1 2022.
Prior to this measure, the first $250 self-education expense could not be deducted. Amounts over this limit would be calculated in the total allowable deductions on an individual tax return.
Self-education expenses can be:
- associated with a course (in-person or online)
- to gain a formally recognised qualification
- from a place of education including a school, college, university or registered training organisation (RTO)
- that are related to your work as an employee (direct connection between education and work duties)
Final criteria to meet and choose from:
- the course maintained or improved a skill or specific knowledge required for your work at the time; and
- you can show that the course was likely to lead to increased income from those work activities; or
- other circumstances provided a sufficient direct connection between the course and those work activities
This measure will apply to the 2022-2023 financial year and should be automatically calculated without individuals needing to confirm with their tax agent/accountant.