New data has revealed that Australians cannot claim a tax deduction for little-known personal expense.
Self-education and professional development have an average tax deduction of $ 1,936, but experts say it is currently one of the most ignored tax deductions in Australia, with only 30 per cent of Australians using it.
According to the Australian Tax Office (ATO), self-education expenses are deductible if the course has a “sufficient” connection to your current job.
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A course is also deductible if it enhances the specific skills needed for this role or is likely to increase your income.
Only 30 per cent of Australians claim the tax deduction. Credit: ATO
If the course is only generally related to your current job or has been used to retrain you for a new role, it cannot be claimed.
Other educational expenses that can also be claimed include tuition fees, printer cartridges, textbooks, stationery, home office operating expenses, phone calls, and service charges.
People can also claim a refund of taxes on depreciated assets purchased for more than $ 300, such as laptops and printers, or other items that lose value over time.
In some cases, travel expenses may be charged, such as car expenses when traveling between home and study.
You can find more information about what you can (and can’t claim) on your tax return on the ATO website.