Who This Guide Is For
This guide is for Australian employees and self-employed individuals who are studying while working and want to know what education expenses they can claim on their tax return. Whether you are doing a university degree, a TAFE diploma, a professional certification, or short courses — if the study relates to your current job, you may be able to claim thousands of dollars in deductions each year.
Self-education expenses are one of the most commonly claimed deductions in Australia, but also one of the most misunderstood. The ATO has strict rules about what qualifies. Claiming the wrong things can trigger an audit, while not claiming legitimate expenses means leaving money on the table.
What Self-Education Expenses You Can Claim
To be deductible, your self-education must maintain or improve skills required in your current employment, or be likely to increase your income from your current employment. Study that only qualifies you for a new career is not deductible.
1. Course and Tuition Fees
Tuition fees paid to an Australian university, TAFE, or registered training organisation (RTO) are fully deductible when the course is directly related to your current job.
Example: Sarah is an enrolled nurse studying a Bachelor of Nursing part-time. The degree maintains and improves skills she uses daily. Her $8,200 annual tuition is fully deductible.
However, FEE-HELP loans are not deductible — only out-of-pocket payments are. And if you are reimbursed by your employer, you cannot claim those amounts.
According to the ATO, you can claim self-education expenses if the study is connected to how you earn your income in your current job — not for study that will help you get a new or different job.
2. Textbooks, Stationery and Learning Materials
You can claim textbooks, academic journals, stationery, software subscriptions, and even professional journal subscriptions required for your course.
Calculation example: Tom is a software developer completing a cloud computing certification. He spends $480 on textbooks, $240 on online course platform subscriptions, and $60 on stationery (notebooks, pens). His total claimable amount is $480 + $240 + $60 = $780 for the financial year.
Library fines and late fees are not deductible.
3. Travel Expenses for Study
You can claim travel costs between your workplace and place of education, or between home and place of education (but only if home was your base of work that day) and back. Use the ATO's cents-per-kilometre rate of 88 cents per kilometre (FY2025–26) for car travel.
Example: Priya works at an office and attends university classes two evenings per week. She travels directly from work to university — 12 km. Her annual claim: 12 km × 88¢ × 2 nights × 40 weeks = $844.80.
4. Computer and Equipment Depreciation
If you buy a laptop, tablet, or other equipment used for study related to your work, you can claim depreciation. For items costing $300 or less, you can claim an immediate deduction. For items over $300, you claim the decline in value over the asset's effective life.
For laptops used for both study and personal use, you can only claim the work/study percentage. If you use your laptop 60% for study and 40% for personal, you claim 60% of the depreciation.
| Item Cost | Immediate Deduction? | How to Claim |
|---|---|---|
| ≤ $300 | Yes — full amount in year of purchase | Claim 100% of cost (× study-use %) |
| > $300 | No — depreciate over effective life | Use ATO depreciation rates (e.g., laptop = 2 years at 50% per year using diminishing value) |
5. Home Office Running Costs for Study
If you study from home and have a dedicated study area, you can claim a portion of your home office running costs. This includes electricity, internet, and mobile phone expenses related to your study.
Using the ATO's revised fixed rate method (70 cents per hour, FY2025–26), you multiply hours spent studying by $0.70. Alternatively, you can use the actual cost method with detailed records.
6. Student Services and Amenities Fees
Compulsory student services and amenities fees (SSAF) charged by your university are deductible when the course meets the work-related test. These fees are typically $150–$350 per year. You can also claim student union fees if membership is compulsory for your course.
What You Cannot Claim
- HECS-HELP, FEE-HELP, or other government loan repayments
- Study that is not connected to your current job (career-change courses)
- Study that is only for personal interest or hobby
- Expenses reimbursed by your employer
- Repayments on student loans taken from private lenders
- Accommodation or meals near your place of education (even if temporarily relocating)
According to the ATO, you must keep written evidence for all deductions claimed. This includes receipts, invoices, and bank statements showing the amount, date, and nature of each expense (ATO guidelines).
Common Mistakes When Claiming Self-Education
| Mistake | Why It's Wrong | What to Do Instead |
|---|---|---|
| Claiming the full cost of a laptop used for both study and personal use | You can only claim the work/study percentage | Keep a logbook for 4 weeks to estimate your study-use percentage, then apply it to all claims |
| Claiming HECS-HELP repayments | HECS repayments are a personal obligation, not a work expense | Only claim out-of-pocket tuition fees you paid directly (not through HELP loans) |
| Claiming study for a completely new career | The ATO's "first $250 rule" and general principle exclude career-change courses | Only claim if the study maintains/improves skills in your current role or is likely to increase income in that current role |
| Claiming travel from home to university without establishing home as a base of work | Travel between home and a place of education is only deductible if home was your base of work first | Travel from work to university is always deductible. Travel from home to university is only claimable if you worked from home that day first |
| Not keeping invoices or receipts | The ATO requires written evidence for all self-education claims over $300 | Scan all invoices and receipts. For courses, keep enrolment confirmations and payment receipts |
Records to Keep
- Course enrolment confirmation letters
- Tuition fee invoices and payment receipts
- Textbook and stationery receipts
- Logbook of travel between work and place of education (dates, kilometres, purpose)
- Computer/equipment purchase invoices with date and amount
- Four-week logbook or diary to establish study-use percentage for shared items
- Internet and phone bills (if claiming home office running costs)
Quick Checklist
- Confirm the course maintains or improves skills in your current job
- Gather all tuition fee invoices and payment receipts
- Collect textbook, stationery, and software receipts
- Record all work-to-university trips (dates, kilometres)
- Calculate your study-use percentage for shared equipment (keep a logbook)
- Total up out-of-pocket expenses (exclude HELP loans and employer reimbursements)
- Keep all records for 5 years after lodgement
*Situation more complex — studying while running a business or claiming across multiple income streams? a registered tax agent (see the directory) Not sure if you need professional advice? See our decision guide.*
*Disclaimer: This is general information only. Individual circumstances vary significantly. Consult a registered tax agent for advice specific to your study and employment situation.*