People often pursue educational course whilst employed. If you are wondering whether you can claim a deduction for the self-education expenses on your Tax Return, this article is perfect for you! We will be covering the following topics:

  • Are education expenses tax deductible?
  • When are education expenses tax deductible?
  • What type of education expenses are tax deductible?
  • What can’t you claim as a self-education expense?
  • The $250 reduction for some self-education expenses
  • Can you claim uni fees on tax?

Are education expenses tax deductible?

For claiming a deduction for self-education expenses, the primary condition is that self-education should relate to your current work activities in your employment. You can also claim expenses for self-education if you have received a taxable bonded scholarship. To claim a deduction in case of taxable bonded scholarship you must satisfy the study requirements that are laid down to maintain your right to scholarship.

Only the expenses incurred on eligible courses can be claimed by you. Read further to understand what eligible courses mean.

When are education expenses tax deductible?

Expenses incurred for self-education are eligible for deduction only when the course results in a formal qualification and has a connection with your current work activities as an employee in a way that it fulfills one of the following conditions:

  • Your level of skill or knowledge required in your current work activities is either maintained or improved; or
  • The course either leads to or is expected to give rise to an increase in your income level from your current work activities.

The following types of self-education expenses are not tax deductible:

  • Courses that aren’t related or are only generally related to your current work activities. For example, if you are doing an investing course whilst working as a recruiter.
  • Courses that enable you to get new employment or change employment. For example, if you are doing an engineering course whilst working as an admin assistant for an engineering company. Even if you may get a higher paying job in that company, you are changing your employment from one role to another.

What type of education expenses are tax deductible?

There are following three types of expenses for which you can claim a deduction:

  • General Course Expenses
  • Depreciating Assets
  • Car Expenses

Some expenses are not allowed to be claimed as a deduction. If you want to get a detailed list of such expenses you can reach out to us at Auditax.

General Course Expenses

There are a lot of general expenses that can be claimed in relation to courses taken by you for self-education such as course and tuition fees, fares, stationery, textbooks, phone calls, and so on. Furthermore, if an expense is incurred partly for self-education and partly for other purposes, then you can claim only the proportionate expenses related to self-education.

Depreciating Assets

Depriciation is the technical term of the loss of value of an asset over time such as laptops or furniture.

Expenses relating to depreciating assets can be claimed in two ways:

  • Firstly, the entire value of the asset at once if the decline in value for that asset over the course of its life is less than $300; or
  • Decline in value of the asset per year if the total decline in value of that asset over the course of its life is greater than $300.

If you also use that asset for personal or any other use, you must only claim a self-education deduction for the portion which you used for studying.

Car Expenses


Car expenses that you incur on self-education can be claimed only for the following two kinds of travel:

  • From home to the educational institution and back; or
  • From work to the educational institution and back.

What can’t you claim as a self-education expense?

The following cannot be claimed as self-education expenses:

  • Tuition fees paid by someone else or are re-imbursed for at a later date;
  • The student contribution on your fees;
  • Repayment of any study or training loans including HELP, SFSS, VSL, SSL or TSL;
  • Living expenses such as accomodation or meals.

The $250 reduction for some self-education expenses

For tax deductions, self-education expenses are divided into five categories. If all your expenses fall in “Category A”, then you are required to reduce your expense claim by $250. However, some expenses fall in “Category E” and are allowed to be set off against the $250 limit.

Can you claim uni fees on tax?

If you are working and studying at the same time, you can only claim uni fees on tax if the course you are studying is:

  • Relevant and useful to your current employment; OR
  • Likely to lead to higher earning opportunities within your field of employment; OR
  • Part of a traineeship you are currently doing.

If one of the above applies to you, or if you are receiving a taxable scholarship, you may be eligible to claim uni fees and other self-education expenses on your tax return. Feel free to contact us to find out more!