Self-Education & Training — Australia Tax Rules

Claim self-education expenses if the course relates to your current income-producing activity.

Claimable: Conditionally claimable · Tax authority: ATO

ATO Rules

• Self-education expenses are deductible if the course directly relates to your current income-producing work.
• The course must maintain or improve skills used in your current income-producing activity — it cannot lead to a new profession.
• The ATO's $250 reduction rule applies: the first $250 of self-education expenses is NOT deductible each year.
• Claimable costs include tuition fees, textbooks, stationery, internet for study, and travel to classes.
• HECS-HELP repayments are not a deductible expense — only upfront study fees are.
• Courses leading to an entirely new trade or profession are NOT deductible, even if they complement your current work.

Limits

First $250 is not deductible. No cap above that, but the course must directly relate to your current work.

Worked Example

Mia is a freelance web developer. She spends $1,800 on an advanced cloud computing course and $200 on technical books. After the $250 reduction: ($1,800 + $200) − $250 = $1,750 deductible. A $1,500 marketing strategy course she also enrolled in is NOT deductible as it's an entirely different profession.

Record Keeping

• Keep course enrolment confirmation and fee payment receipts
• Retain textbook and study material receipts
• Document how the course directly relates to your current income-producing activity
• Keep certificates of completion
• Record travel costs separately if attending in person

Frequently Asked Questions

Can I claim a university degree?

Only if it directly relates to your current work. A web developer doing a Computer Science degree may qualify, but a developer studying law would not. The ATO looks at whether the course maintains or improves skills used in your existing work.

What is the $250 reduction?

The first $250 of self-education expenses each year is not deductible. This applies to the combined total across all self-education claims — not per course. Calculate your total, subtract $250, and claim the remainder.

Can I claim travel to attend courses?

Yes. Travel costs to attend training that qualifies are part of your self-education expenses — subject to the $250 reduction. If the training is in another city, accommodation costs are also claimable.

Can I deduct online courses from platforms like Coursera or LinkedIn Learning?

Yes, if the content directly relates to your current income-producing work. A freelance designer claiming an advanced Photoshop course is clear-cut. A plumber claiming a social media marketing course would need to demonstrate a direct connection to their existing plumbing business.