Claiming self-improvement expenses or self-development courses

Expenditure on self-improvement or personal development courses is generally not allowable as a tax deduction. However, a deduction may be allowed to the extent that the expenditure is incurred in gaining or producing assessable income. That is, the course:

• Maintains or improves the specific skills or knowledge you require in your current employment; or
  
• Results in, or is likely to result in, an increase in your income from your current employment.

A deduction cannot be claimed for a course that does not have sufficient connection to your current employment, even though it:

• May generally be related to your employment; or
  
• Enables you to get new employment.

Where some modules of a longer course are considered income related, the Tax Office may allow a proportion of the cost of a course to be deductible.

Project management, leadership and mentoring staff are courses or module topics considered by the Tax Office to be classed as income related. Other topics such as communication, handling change and decision making are considered too general in scope to be classed as income related.

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