The Government announced its intention to limit individual taxpayers’ allowable deduction for work-related self-education expenses. From 1 July 2014 it will be capped at $2,000 per annum.
The limit will apply to all eligible self-education expenses such as tuition fees, books and journals, computer expenses. If you need to travel and stay in an accommodation booked specifically for your seminars and courses, the travelling and accommodation costs are also allowable deductions.
This proposal has far-reaching implications. It might impact individuals’ decisions in wanting to improve their professional qualifications. Small businesses can help their staff by offering to pay for any courses or tuition to improve staff competencies, which allows them to be exempted from the $2,000 per annum cap. However if your staff has a salary sacrifice arrangement, paying for their training courses will be considered a fringe benefit and subject to fringe benefits tax.