Business Advice

Tax time: save when studying

- April 11, 2017 3 MIN READ

Tax time for any small business is stressful, but it can also be a blessing in disguise.

Did you know that if you or your staff are studying to improve any current work skills then your small business may be eligible to claim some of these expenses on tax?  

Claiming education expenses is an easy way to increase your return on investment and save some hard-earned cash.

It pays to know what you can and can’t claim, and whether or not you’re eligible, so here’s how you could save money this June.

The Australian Taxation Office includes deductions for education, technical, or professional qualification expenses because it considers these as operating costs. This means small businesses looking to get ahead can get a little relief at the end of the financial year.

What’s more, you may be able to claim a significant amount of the costs associated with undertaking a course. For example, will you need to use your phone or internet during your training? What other resources do you need to buy to help you complete the course? Ask yourself and your staff these questions to ensure you’re claiming all your relevant costs and then work through them all to make sure they’re all eligible for claiming come tax time.

Of course, the qualification itself must be relevant to your businesses operations and assist in functioning more effectively – which is especially helpful for your bottom line anyway.

We know that, training your staff is great for retaining your staff.

Plus, the course you choose might also attract government funding or subsidies.

It’s important to know the limits on what you can claim, in addition to the types of expenses. Not every expense can be fully claimed, and some categories of expenses are subject to a limit.

If you’re not sure whether or not a course attracts tax incentives – either as a student or small business – then it’s wise to speak with someone from a Registered Training Organisation such as Upskilled.

Once you’ve identified whether or not you can claim a course and what other expenses may attract incentives, it’s time to start keeping track of your expenses to make sure you know exactly how much your study related expenses cost before you can claim them.

When claiming expenses on your small businesses tax it’s really important to make sure you have an accurate record of your claim, and can provide details to the ATO if required. This not only helps you get the most out of your claim, but ensures its accuracy – no one wants to get hit with a big tax bill. Find a good record keeping system that helps you record your expenses to get the most out of your tax return.

Since education and training is beneficial for both employees and the business, it makes sense to invest in it. Tax breaks are just a great incentive for you and your company.

If you’re currently studying as preparation for starting your own small business, then you might also find yourself eligible for a raft of personal tax benefits. So, what can you claim? Textbooks, course materials, travel and other expenses can all attract tax concessions. Especially if what you’re studying will help you jump another income tax bracket in the future.

Is it time to upskill your staff or is a tax break the reason to get that qualification you have been thinking of and start your own small business?

This article was brought to you by Upskilled. Qualify for Tomorrow with Upskilled. For more information on Upskilled and their upcoming courses, visit or call 1300 009 924.

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