Claiming a tax deduction for self-education expenses depends on whether the course or training directly relates to your current work or business. To qualify, the expenses must improve your skills or knowledge in a way that helps you perform your current job duties more effectively, and they may even result in a promotion or pay increase.
For example, costs like flying lessons for an air traffic controller or formal study tours aimed at enhancing job-related skills can often be claimed. However, if the training or course involves personal benefits, such as leisure activities during a study tour, these private components must be excluded from the deduction.
On the other hand, expenses for courses that help you gain skills for a new career or occupation or prepare you for a job you haven’t started yet, are generally not tax deductible. Similarly, you cannot claim expenses for education undertaken to transition into a new line of work.
If you are employed or self-employed, deductions are typically allowed for courses, training, or professional development that enhance your ability to perform your current role. This could include pursuing a higher degree relevant to your job, attending professional seminars, or subscribing to resources that improve your expertise in your field. However, any personal use of materials, such as books or subscriptions, must be accounted for and excluded from the claim.
Because the rules around self-education deductions can be complex and context-specific, it’s advisable to consult a tax professional for guidance tailored to your situation.
