Have you ever wondered whether the costs of conferences, seminars and efforts at self-education are deductible? And what associated costs can you claim? Well, there is both good news and bad news.
The upside is that the costs of going to conferences and seminars can be tax deductible. However, it is important to note that the purpose of attending a seminar or conference needs to be to maintain or increase your knowledge, capabilities or skills in relation to your current employment.
For example, as a junior doctor, the costs of attending an accounting seminar are not deductible as it does not further your capabilities in your existing role, which is there is no direct correlation to the income that you earn.
What expenses can be claimed?
- Registration costs for the seminar/conference
- Transport to attend the seminar/conference, including airfares, train and costs of cab fares
- Parking fees and tolls
- Accommodation if the seminar/conference you’re attending requires an overnight stay
- Meals and drinks such as breakfast or dinner on seminar/conference days (no alcohol) when an overnight stay is required
For these costs to be deductible, you must pay for them yourself and they cannot be reimbursed by your employer.
When you decide to stay longer or arrive earlier, these extra days are considered personal and are not tax deductible. In these circumstances, the tax deduction will be apportioned between business and personal. For example, if you attend a two-day conference in Sydney and plan to stay three extra days to catch up with friends, consider the main purpose of your trip. If the primary reason is work-related, you can claim the accommodation and airfares.
Self-education expenses
Self-education expenses are the costs you incur to undertake a study course at a school, college, university or other recognised place of education. These expenses can be tax deductible when the course you undertake:
- has a strong connection with your current employment and maintains/improves the specific skills you require in your current employment
- results in – or is likely to result in – an increase in your income from your current employment.
As a junior doctor, if you undertake a course for personal development, the cost of this course is unlikely to be tax deductible because the course is not occupation specific.
You can claim a tax deduction for many general course expenses, including tuition fees, textbooks, stationery, travel costs and fees payable on some HELP loans, but not the loan itself.
Please also remember that you may need to keep receipts or other documents showing your seminar/conference expenses and self-education expenses.
If you wish to further discuss potential tax advantages, please contact your William Buck adviser.
