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Self-education threshold removed

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.

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