Is it self Education ?

A fairly common mistake or issue for taxpayers is self education expenses.

Some taxpayers mistakenly claim as a work related expense. Others will claim as self education and it isnt. The correct choice is important as it can avoid excessive deduction claims or underclaiming too.

Mistakenly Claiming - reduces deduction
Mary is a nurse. She attends a CPR refresher course costing $230. She reads that the ATO require her to reduce her self-education cost by $250. So she cant claim anything ??

Actually Marys cost is not self education. self education costs concern obtaining a qualification at a school, uni or college. Mary is a nurse. She isnt accessing a new qualification.

Marys cost is a work related expense. No reduction is needed.
The ATO self ed calculator step one asks this question.

Mistakenly Claiming - Should be self education
Peter is working in a PC repair shop and decides to undertake a course in advanced coding. He claims a work related deduction for the course fees of $14,000. This expense is a self education cost. Peter will likely read on the ATO website that courses that give new sills and qualfications arent eligible for deductions. He is moaning about this deduction being disallowed to his friend Mike who is doing the same course. Mike has been a app coding member at Google (working on maps) for three years and was recommended to get improved qualifications as his existing systems certificate from TAFE isnt quite relevant any more. He can claim self education costs and these may include some costs well outside just the course fees. He realises there are 5 different types of costs (A-E) and follows the ATO guide on their website at D4 Work-related self-education expenses 2019

 

Love these tax related post @Paul@PFI .
In relation to Mary, the ATO website also mentions 'other place of edumufcation' too. Why would that not be considered? Further it doesn't specify that self-education needs to be a 'new qualification' here.

 

The ATO website is a poor point for definitions. A FORMAL qualification is one pertaining to practice or a recognition etc. Doing a CPR refresher isnt a formal qualification as an example. Doing studies post grad at uni to become an anaesthetist is a formal qualification. First Aid is a matter of experience and recognition of competency.

The self ed ruling delves deeper. The type of fees for example may be pertinent. eg Paid or available to be paid by HECS, HELP etc...