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Work-related self-education expenses
An individual can claim tax deduction if his or her study is work-related or receive any taxable bonded scholarship.
According to Australian Tax Office (ATO), “Self-education is defined as courses undertaken at an educational institution, attendance at work-related seminars or conferences, or self-paced learning and study tours (overseas or within Australia).”
While claiming tax deduction on work-related self-education, any one of the following conditions are required to be met:
An individual cannot claim deduction on the following basis:
Furthermore, if an individual is eligible to claim, there are many expenses of work-related self-education, which is considered as tax allowable deduction. Some allowable and non-allowable tax deductions on work-related self-education have been mentioned below:
Allowable tax deductions
Non-allowable tax deductions
Note: Some travel expenses cannot be claimed but individual can offset the cost of these expenses against $250 reduction. Also, if an expense is partly of the work-related self-education and partly for other purposes, individual can only claim the amount related to the individual’s self-education as reduction.
Gifts or Donations
An individual can claim tax deduction for gifts or donations to organisations, which have the status of Deductible Gift Recipients (DGRs).
To claim tax deduction on gifts or donations, following four conditions need to be met:
From the following basis, an individual can claim a deduction on gifts and donations if they meet some specific criteria:
Nevertheless, in some areas, tax deduction cannot be claimed on gifts and donations. And these are:
COST OF MANAGING TAX AFFAIRS
Costs that are related with managing individual’s tax affairs are comprehensively tax deductible. One can claim on these costs in compliance with his/her legal obligations relating to another person’s tax affair.
Individual can claim a deduction for expenses incurred in managing tax affairs, if it includes:
One can also deduct the expenses, which was incurred while lodging and preparing the individual’s tax return. These include:
Note: Individuals generally incur these expenses in the year they pay tax.
In two scenarios, one cannot get to claim tax deduction on the costs of managing tax affairs. These are: