Self-education expenses are deductible in Australia when the course directly maintains or improves the specific skills required in your current employment. Expenses related to getting a new job or qualification for a different career are generally not deductible. The distinction matters significantly — and it is one of the most contested areas of individual deductions.
The Key Test — Current Employment Connection
Deductible self-education:
- A nurse studying a postgraduate nursing qualification in their current clinical specialty
- An IT professional completing a certification relevant to their current role
- A teacher studying advanced pedagogy to improve their teaching practice
- A financial planner studying for an FASEA exam required to continue operating
- A tradie completing advanced trade training in their current trade
Not deductible:
- A teacher studying for a law degree (new career)
- A nurse studying medicine to become a doctor (different profession)
- A recent school leaver studying for their first qualification (not yet employed in the field)
- A stay-at-home parent studying to re-enter the workforce
The ATO’s test is whether there is a sufficiently close connection between the course and your existing income-producing activities. If the course leads to a new, entirely different career, the connection is absent.
What Self-Education Expenses Are Deductible
When the course meets the test, you can claim:
| Expense | Notes |
|---|---|
| Course and tuition fees | Not covered by HECS-HELP (only out-of-pocket fees) |
| Textbooks and study materials | Directly related to the course |
| Stationery, printing | For study purposes |
| Computer and equipment | Work proportion of items used for study (if already used for work) |
| Internet | Study proportion (if studying online) |
| Student union fees | Deductible with the course fees |
| Travel to attend classes | The ordinary trip from home to university may not be deductible — see note below |
| Professional journals and subscriptions | Related to current work area |
HECS-HELP fees: HECS debt repayments are not deductible. Only upfront fees paid out of pocket are deductible.
Travel for Self-Education
Travel from home to a place of education is not automatically deductible — it is treated similarly to home-to-work travel. However:
- If you travel from your workplace to an educational institution (e.g., you attend evening classes after work), the work-to-education leg may be deductible
- If you travel from your workplace to home to education, only the incremental cost of the education detour may be deductible
The $250 Non-Deductible Amount — Removed
Note: A former ATO rule imposed a $250 non-deductible threshold on certain self-education expenses. This rule was removed from 1 July 2022. The full cost of qualifying self-education expenses is now deductible (subject to the income-connection test).
Frequently Asked Questions
I am studying part-time and working part-time in the same industry. Are my fees deductible? If your study directly relates to your current part-time work (not just preparation for future employment), there is a reasonable argument for deductibility. The stronger the connection between your duties and the course content, the stronger the claim. Consider seeking a tax agent’s view.
My employer reimburses my course fees. Can I still claim? No. If reimbursed, the expense is not yours. You cannot claim reimbursed amounts.
Can I claim a TAFE course relevant to my current job? Yes — TAFE courses meet the same test as university courses. If the course improves or maintains skills in your current employment, the fees and materials are deductible.
What if the course gives me a higher qualification in my current field (e.g., upgrading from a certificate to a diploma in my current occupation)? If the qualification leads to a promotion or change in duties rather than a new career, it is more likely to be deductible than if it prepares you for an entirely different field. The key question is whether the study connects to your current employment or to a new one.
This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.