Work Related Self Education

Self-education expenses which are

• associated with a course
• to gain a formally recognised qualification
• from a place of education including a school, college or university
• that are related to your work as an employee

..may be a tax deduction if the following circumstances are true:

• the course maintained or improved a skill or specific knowledge required for your work at the time; and 
• you can show that the course was likely to lead to increased income from those work activities; or
• other circumstances provided a sufficient direct connection between the course and those work activities

TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual

The Tax Office has released guidance for the claiming of self education expenses in the form of Tax Ruling TR 2024/3 which lists out 38 categorised examples of claimable and non-claimable expenses.

A summary of examples provided in the ruling is set out below:

Example	Brief Description	Deduction?
Example 1	Self-education expenses for maintaining/increasing knowledge required in current position	Deductible
Example 2	Personal development course expenses not reimbursed by employer	Deductible
Example 3	Driving course fee for skills directly related to employment	Deductible
Example 4	Expenses for stress management course	Non-deductible
Example 5	Overseas trip expenses for general knowledge improvement	Non-deductible
Example 6	Apprenticeship expenses considered self-education	Deductible
Example 7	Self-education leading to guaranteed promotion	Deductible
Example 8	Self-education leading to higher income but in a different position	Non-deductible
Example 9	Self-education at a point too soon	Non-deductible
Example 10	Self-education to get new employment	Non-deductible
Example 11	Self-education for new employment	Non-deductible
Example 12	Course not opening new income-earning activity within current employment	Deductible
Example 13	Self-education to get new income-earning activity	Non-deductible
Example 14	Self-education to get new income-earning activity	Non-deductible
Example 15	Self-education to get new income-earning activity / later incurred with connection to income-earning activities	Non-deductible / Deductible
Example 16	Fees for education after being made redundant	Non-deductible
Example 17	Self-education expenses for ABSTUDY recipient	Non-deductible
Example 18	Incidental private purpose expenses	The main expenses can still be deductible
Example 19	Course during holiday, private purpose not incidental	Apportioned Deduction
Example 20	Course and holiday, dual purpose expenses	Apportioned Deduction
Example 21	Cost of individual subjects directly related to employment	Deductible
Example 22	Cost of personal development course	Partial deduction
Example 23	Course fees for employment-related education, FEE-HELP received	Deductible
Example 24	Course fees for employment-related education, FEE-HELP received, Commonwealth supported student in a CSP	Non-deductible
Example 25	Cancelled enrolment fees for work-related course	Deductible
Example 26	Interest on loan for deductible self-education expenses	Deductible
Example 27	Interest on loan not related to self-education expenses to get new employment	Non-deductible
Example 28	Cost of study supplies for deductible self-education expenses	Deductible
Example 29	Digital subscription partially used for employment	Partly Deductible
Example 30	Cost of airfares for work-related education	Deductible
Example 31	Accommodation and meal expenses for educational activities	Deductible
Example 32	Meals and incidental expenses, work-related conference, no overnight stay	Non-deductible
Example 33	Accommodation and meal expenses for employment-related education, temporarily away from home expenses	Deductible
Example 34	Accommodation and meal expenses for employment-related education, living away from home	Non-deductible
Example 35	Accommodation expenses for employment-related study tour overseas	Deductible
Example 36	Accommodation and meal expenses while living in the U.S. for a 12 months university course	Non-deductible
Example 37	Expenses for 3 week course in London, extended to 6 months	Partly deductible
Example 38	Public transport fares for travel from home to place of self-education related to employment	Deductible

Note this summary is a general guide only. The Ruling should be consulted for an explanation of the principles on which the examples are based.

Deductible self-education expenses must be work-related at the time incurred.

In claiming the connection with work, the timing of expenses can be significant. In an AAT case, an employee was denied deductions for the costs of an MBA course which became payable after he was made redundant. See Thomas and Commissioner of Taxation (Taxation) [2015] AATA 687 (9 September 2015)

• Deductions which might otherwise be claimable against government assistance payments such as Austudy, ABSTUDY or Youth Allowance have not been allowed since 1 July 2011
• Expenses which enable new or unrelated employment are not allowable
• Payments to the various government student loans assistance schemes are not allowable

Self-education expenses are claimable at Item D4 of the individual income tax return.

Self education expenses are essentially a claim for a work-related expense under Section 8.1 (General Deductions), together with specifically allowable expense claims such as repairs and depreciation.

What’s included in a self-education claim

Expenses commonly qualifying for the self-education deduction include:

• tuition fees
• the cost of accommodation and meals during temporary overnight absences from home for the purpose of participating in self-education
• text books and professional or technical journals
• stationery
• student union fees
• computer expenses
• student services and amenities fees
• depreciation (decline in value) of a computer or other capital equipment (with apportionment for non-self-education use where applicable)
• travelling expenses for the trips between
  • home and the place of education
  • workplace and place of education
• interest on borrowings which are used to pay for deductible self-education expenses
• home study expenses – which includes the running expenses of a room set aside for self-education purposes. With appropriate substantiation, expenses associated with the study room may include:
  • repairs & maintenance
  • depreciation (decline in value) of furniture and equipment
  • heating, cooling, lighting
  • as an alternative to record keeping for the actual expenses:
    • a fixed or hourly rate method may be claimed to cover certain home office expenses
    • a “short-cut” fixed all-inclusive rate of 80 cents per hour (this method not available after 30 June 2022)

Self-education expenses deduction example calculation

(as applies from 1 July 2022)

Note that the $250 expenses exclusion has been removed with effect from 1 July 2022.

Further info: see Tax Office

Online self education expenses calculator

For the self-education expenses online calculator provided by the Tax Office – see Tax Office online self-education expenses calculator.

More information:

• ATO – Self-education expenses
• TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual
• Depreciation

This page was last modified 2024-02-21