Investing in Upgrading Your Skill for a Job? Know What you can Claim

Toongabbie accountants

Employees, like other assets and aspects, are key to the growth of a business. Being a business owner, you will likely be making expenses towards your business growth through software upgrades, asset purchases, and employee training. But when an employee opts for training for career growth, he/she can claim a deduction for the same.

Yes! You can claim a deduction for money you spent on getting trained, provided you fulfil certain conditions.

How to Qualify for the Deduction?

The primary condition for claiming a deduction is that the employee must have paid for the training. And that’s definite. The second condition is that the training curriculum must be linked to the current job profile of the employee.

Besides, you would need to opt for a course from a recognized institution. The skills involved must be in use at the current role or a future career you are planning to migrate to. On meeting all these conditions, the employee might be eligible for a deduction in the taxable income. However, the final decision lies with the taxation officer’s guidelines.

FBT Limitations

Employees can claim the cost of the training course for FBT but the amount is limited. The limit is waived off if the course duration is more than six months. The taxation officer has guidelines on what training can be eligible for deduction including examples such as accounting, language, computer, and driving courses.

Before filing your tax return, you can consult professional accountants in Toongabbie to get the maximum benefit. Their skills and knowledge can help you minimize liabilities considering all aspects possible.