Training Tax Deductions for Businesses

The cost of undertaking professional development training is not always budget friendly and acquiring the additional skills you need to start or grow your business can sometimes be a big investment. However, you may be able to offset the cost of training as a deduction on your next tax return.

To make a self-education expense deduction, you must engage in formal training that you can prove will or is likely to improve your income. It is important to note you must be working and studying concurrently and be training with a school, college, university, or other formally recognized place of education.

Due to our RTO status, business owners that engage in our programs to learn the skills to grow their business may be eligible for this deduction.

The tax guidelines stipulate that there must be a clear link between your education and current source of income. There may be a course that is related to your industry, but if you cannot prove that taking the course will lead to increased income in your current position then you will not be eligible.

For example, taking a business skills and development course as a business owner would prove your eligibility, however taking a fashion photography course as a part-time retail worker would not.

If you meet the requirements to make a claim, you may be able to make a deduction on:

• Tuition fees (excluding fees paid under HECS-HELP)
• Self-education expenses paid with your OS-HELP loan
• Textbooks, professional and trade journals
• Stationary
• Printing and photocopying
• Computer expenses
• Student union fees
• Student services and amenities fees
• Accommodation and meals (where your course require you to be away from home from one or more nights)
• Running expenses (such as using a home office whilst studying)
• Allowable travel expenses

If you intend to claim for items that you also use for personal reasons, you must apportion your claim accordingly. For example, you could claim the internet expenses from when you are using it to engage with your training, but you cannot claim for when you are using the internet outside of your education.

In addition, ensure that you retain all the receipts and documentation of your expenses and keep it for your records.

We provide high quality training programs and workshops that empower business owners with the skills, knowledge, business acumen and confidence to start and grow their business.

As a Registered Training Organisation (RTO), you might be able to claim the cost of participating in one of our programs as a self-education expenses on you next tax return.

To find out more visit the Australian Tax Office’s website here and we recommend you speak to your accountant to discuss your individual circumstances.