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Self-education expense deductions – reforms announced

May 2013

The Treasurer, Wayne Swan, recently announced proposed reforms that would include an annual cap on self-education expenses to "better target self-education expense deductions." The cap would be $2000 per person from 1 July 2014.  

The majority of taxpayers currently claiming work-related expenses will not be affected. Data from the ATO suggests that the typical claim for self-education expenses is less than half the proposed cap. Education expenses can include:
  • formal qualifications
  • tuition fees
  • study materials such as textbooks and stationery
  • conferences, seminars and self-organised study tours.

The announcement also states that employers will not be liable for FBT for education and training for their staff, unless the employee salary sacrifices to obtain the benefit.

The announcement also states that employers will remain not liable for FBT for education and training they provide to their employees, unless an employee salary sacrifices to obtain these benefits.  This recognises the need to encourage employers to continue to invest in the skills of their employees.

The Government will be consulting with employees and employers to ensure that the concessions are properly targeted and still support training of staff, recognizing the ongoing need for employees to invest in the skill development of their employees.

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Last updated May 2013. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.

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Disclaimer

This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.

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