Self-Education Expenses Deduction - Are You Claiming It Correctly?

Investing in your professional development can be tax-effective—if done right. The Australian Taxation Office (ATO) allows individuals to claim deductions for self-education expenses that are directly related to their current employment. This guide outlines what qualifies, what doesn’t, and how to maximise your claim.

What are Self-Education Expenses?

Self-education expenses are costs incurred to:

• Gain a promotion

• Increase your current income

• Improve existing professional skills

• Maintain your current role through continuing education, certifications, or short-term training

To be deductible, the education must have a direct connection to your current job or income-generating activities.

Eligible Deductible Expenses

If your self-education meets ATO’s criteria, you may claim deductions for:

• Tuition, course, conference, or seminar fees

• General course-related expenses

• Depreciation of assets used for study

• Car and transport costs

• Accommodation and meals (if overnight travel is required)

• Interest on loans used to fund deductible education expenses

📌 Note: For expenses incurred before 1 July 2022, the first $250 is generally not deductible.

General Course Expenses

You may claim the following if they are directly related to your work-related study:

• Computer consumables (e.g., printer cartridges)

• Equipment repairs (e.g., laptop servicing)

• Internet and data usage (excluding connection fees)

• Phone calls

• Postage

• Stationery

• Student union fees

• Textbooks

• Trade, professional, or academic journals

Depreciating Assets

Assets used for self-education may be claimed as follows:

• Immediate deduction for items costing $300 or less

• Depreciation over time for items costing more than $300

Examples include:

• Computers

• Professional libraries

• Desks and chairs

• Filing cabinets and bookshelves

• Calculators

• Technical instruments and tools

• Desk lamps and other equipment

If the asset is used for both work and personal purposes, the deduction must be apportioned accordingly.

Car and Transport Expenses

You may claim travel expenses if your study is sufficiently connected to your current employment. Deductible travel includes:

• From home to your place of education

• From work to your place of education

🚫 You cannot claim the final leg of travel if it follows this pattern:

• Home → Education → Work

• Work → Education → Home

✅ Parking fees incurred while attending classes or seminars are deductible.

Interest on Borrowings

If you’ve taken out a loan to pay for deductible self-education expenses, the interest on that loan may also be claimed.

Expenses that are not Deductible

You cannot claim the following:

• Tuition fees paid by someone else or reimbursed by your employer

• Courses with only a general connection to your job (e.g., language classes)

• Study undertaken to find a job or start a new business

• Tuition fees paid upfront or via HECS-HELP for Commonwealth Supported Places

• Repayments of study loans, including:

  • HELP (FEE-HELP, HECS-HELP)

  • Student Financial Supplement Scheme

  • VET Student Loans (VSL)

  • Student Start-up Loans (including ABSTUDY)

  • Australian Apprenticeship Support Loans (AASL)

• Courses that provide high-level skills far beyond what your current job requires

Need Help Maximising Your Claim?

Our team of experienced accountants can help you assess your eligibility, calculate your deductions, and ensure your records meet ATO standards.