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Australia Self-Education Expenses Guide

Australian self-education expense deductions. The guide covers: the self-education expenses deduction — the 'self-education expenses' (the 'education expenses incurred by the individual for the 'course of study' or the 'training program') are 'deductible' under the 'Section 8-1 of the ITAA 1997' if the 'education is 'directly related to the individual's 'current employment'' (the 'nexus between the study and the employment'); the 'self-education expenses' are 'deductible' if the 'study: (i) 'maintains or improves the skills or the knowledge required for the current employment' (the 'skill maintenance'), or (ii) 'leads to the increase in the income from the current employment' (the 'income improvement'), or (iii) 'is the condition of the current employment' (the 'employer requirement'); the 'self-education expenses are NOT deductible' if the 'study is for the 'new career' or the 'new job' (the 'study that qualifies the individual for the NEW employment' is NOT 'deductible'); the $250 self-education expense threshold — the 'first $250 of the self-education expenses' is 'NOT deductible' (the '$250 threshold' under the 'Section 82A of the ITAA 1936'); the '$250 threshold' applies to the 'total self-education expenses' in the 'income year' — the 'deduction is for the 'excess over $250'; the '$250 threshold' does NOT apply to the 'study-related travel expenses' or the 'equipment expenses' (the 'capital expenses' — the 'computers, the textbooks, the equipment'); the 'threshold' is 'per taxpayer' (the 'individual' — NOT 'per course'); the deductible self-education expenses — the 'deductible self-education expenses' include: (i) the 'course fees' (the 'tuition fees' for the 'university course', the 'TAFE course', the 'private education course', the 'professional qualification'), (ii) the 'textbooks and the journals' (the 'required reading materials'), (iii) the 'stationery and the supplies' (the 'paper, the pens, the folders'), (iv) the 'equipment' (the 'computer, the laptop, the tablet', the 'software', the 'printer'), (v) the 'internet and the data costs' (the 'apportioned home internet for the study'), (vi) the 'travel expenses' (the 'travel from home to the education institution' and the 'travel from the workplace to the education institution'), (vii) the 'accommodation and the meals' (the 'overnight travel for the study — the 'residential school', the 'conference'), (viii) the 'student union fees', (ix) the 'FEE-HELP fees' (the 'FEE-HELP loan fees' are 'deductible'); the non-deductible self-education expenses — the 'self-education expenses that are NOT deductible': (i) the 'HECS-HELP payments' (the 'compulsory HELP repayments' are NOT 'deductible'), (ii) the 'education expenses for the NEW career' (the 'study for the NEW job' is NOT 'deductible'), (iii) the 'private education expenses' (the 'personal interest courses' — the 'cooking, the photography, the language courses' for the 'personal enjoyment').

Self-Education Deduction

  • Skill maintenance: The 'course that 'maintains or improves the skills' for the 'current job' is 'deductible'.
  • New career — NOT deductible: The 'study for the 'new career' or the 'new job' is NOT 'deductible'.
  • $250 threshold: The 'first $250 of the self-education expenses' is NOT 'deductible'.

For the HECS-HELP and the education loans, see our HELP/HECS Education Guide →.

Deductible Expenses

  • Course fees: The 'tuition fees', the 'course materials', and the 'student union fees' are 'deductible'.
  • Equipment: The 'computer, the laptop, the tablet, the software, and the printer' are 'deductible' (the 'decline in value' for the 'items over $300').
  • Travel: The 'travel from the home or the workplace to the education institution' is 'deductible'.

For the business expenses and the work-related deductions, see our Business Expenses Guide →.