With APP 2026 coming up next month, we can’t wait to see what is in store for the industry over the coming years. It’s a place where we get to meet everyone in the industry under one roof and we get to learn and share with others so we all have a part in shaping the pharmacy industry and patient outcomes. As we reflect on what has happened in the last couple of years – namely Full Scope of Practice, we thought it would be a great opportunity to do a refresher for those pharmacists currently or thinking about undertaking the courses offered and do a quick recap of the tax deductibility of the fees and associated costs.
Currently every state has their own requirements in terms of education and recognition of the courses being offered. In some states, the fees associated with completing the training programs are being subsidised, whilst in others it is possible to complete the programs as a private student.
Regardless of how the fees are being paid, for every student (we understand that for some of you, it’s been quite some time since you were at university – well done to you for taking this on!) the most common question of “are any of the fees deductible?” will arise.
So here we go with some general information.
When are self education expenses deductible?
To be deductible, the course being undertaken must have a sufficient connection to your employment activities to produce income and must maintain or improve your skills and knowledge.
ATO Source: https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/education-training-and-seminars/self-education-expenses
For example:
· Aiden is a registered pharmacist. He is currently undertaking a Graduate Certificate in Pharmacist Prescribing.
· The skills and knowledge required by Aiden, to perform his duties as a registered pharmacist will be maintained and improved by undertaking the graduate certificate.
· There is also a strong likelihood that Aiden's income will increase as a result of completing his graduate certificate.
· Aiden can claim a deduction for the expenses he incurs to complete the course.
If you meet the above criteria, then the following expenses can be claimed:
· Tuition, course, conference or seminar fees
o These are deductible to the extent that you have paid for them yourself and they HAVE NOT been reimbursed or subsidised.
· General course expenses such as:
o computer consumables – for example, printer cartridges
o equipment repairs – for example, the cost of repairing a computer
o internet and data usage (excluding connection fees)
o phone calls
o postage
o stationery
o student union fees
o textbooks
o trade, professional, or academic journals.
· Depreciating assets. Popular items that are claimed:
o computers
o professional libraries
o desks and chairs
o filing cabinets and bookshelves
o calculators
o technical instruments and tools
o other equipment (such as desk lamps).
Note:
- assets valued at $300 or less can be claimed in the year you purchase the asset.
- assets over $300 will be depreciated over the life of the asset.
- Private use is NOT deductible, and you will need to apportion the claim.
· Motor vehicle use, parking and other transport costs
o home to your place of education and back home
o work to your place of education and back to work
o some travel may be considered private so make sure you are clear on your travel movements when documenting
Most importantly, you must be able to show the receipts! Please make sure invoices and written evidence are to be recorded for all expenses you intend to claim. It will help your accountant and advisors provide the right advice for you and keep you out of trouble with the ATO.
For further information to see if these expenses are deductible for your circumstances, please reach out to us or your advisors.