Self-education expenses are among the most valuable — and most misunderstood — deductions on Australian tax returns. In 2026, the ATO allows deductions for study and training directly connected to your current employment or business, but draws a firm line at expenses for courses that qualify you for a new career. The key test is whether the self-education maintains or improves skills for your current role — not whether it might help you earn more in the future.
When Is Self-Education Tax Deductible in Australia?
Self-education expenses are deductible under Section 8-1 of the ITAA 1997 when the study:
- Maintains or improves specific skills required in your current employment
- Results in or is likely to result in increased income from your current employment
- Is directly related to your current income-earning activities
The critical word is "current" — the course must relate to your existing job, not a potential future career.
Deductible vs Non-Deductible Self-Education Examples
- Deductible: A registered nurse completing a specialist nursing qualification to advance in their current nursing role
- Deductible: An accountant completing a CPA or CA program to maintain their professional registration
- Deductible: A software developer completing an advanced programming course to improve skills used in their current job
- Not deductible: A nurse studying law to become a solicitor (qualifies for a new profession)
- Not deductible: A school student studying for their first degree (no current income-earning activities)
- Not deductible: A retail worker completing a business degree hoping for a management role (new career direction)
What Self-Education Expenses Can You Claim?
When self-education is deductible, the following specific expenses can be claimed:
- Course fees and tuition (including HECS-HELP repayment amounts attributed to the course — but not HELP debt itself)
- Textbooks, stationery, and study materials
- Computer and internet costs (work/study-use proportion)
- Travel to and from educational institutions
- Accommodation and meals if studying requires travel away from home
- Interest on money borrowed to fund the course
The $250 Reduction: Eliminated From 1 July 2022
Prior to 1 July 2022, claimants were required to reduce self-education deductions by $250. This rule has been permanently removed — self-education expenses incurred from 1 July 2022 onwards are deductible in full (subject to the nexus test). If you previously reduced your claims by $250, no further adjustment is needed.
Government-Funded Training Programs
Employer-funded training is generally deductible as a business expense for the employer. For employees, if your employer pays for training and it is a fringe benefit, the FBT exemption for work-related training applies — meaning no FBT for the employer and no assessable income for you. Self-funded training for your current employment remains personally deductible.
Frequently Asked Questions
Can I claim HECS-HELP repayments as a tax deduction?
No. HECS-HELP repayments are not tax-deductible — they are a government loan repayment, not an out-of-pocket expense. However, the course fees themselves (what the HELP loan funded) would have been deductible if the course was directly connected to your then-current employment. Going forward, voluntary HECS repayments may improve your borrowing power but are not a tax deduction.
Can I claim a self-education deduction if my employer pays?
No. If your employer reimburses or directly pays for your training, you cannot also claim a deduction — you have not incurred an expense. If your employer pays some but not all costs, you can claim the portion you paid personally, provided the nexus test is satisfied.
Is an MBA tax-deductible in Australia?
An MBA can be deductible if it is directly related to your current role as a manager or executive — for example, a senior manager undertaking an MBA to improve management skills directly applied in their current position. It is not deductible if you are undertaking it to transition into a management career for the first time.
Studying while working? Contact AWTS to confirm which of your self-education expenses are deductible in your 2026 tax return.
