Upskilling? You may be able to claim your self-education expenses

If you’ve thought about upskilling or undertaking professional development this year, you may be able to claim some of your self-education expenses in your 2024–2025 income tax return.

What are self-education expenses?

You incur self-education expenses when you:

• take courses at an educational institution (even if you don’t gain a formal qualification); 
• undertake training provided by an industry or professional organisation; 
• attend work-related conferences or seminars; or 
• do self-paced learning and study tours in Australia or overseas.

Are you eligible to claim?

Your self-education expenses need to have a sufficient connection to your current employment income in order to make a claim. This means that your study must either:

• maintain or improve the specific skills or knowledge you use in your current role; or
• be likely to result in increased income in your current role.

Keep in mind that sometimes only certain subjects or components of your study are sufficiently connected to your work – in these cases, you'll need to apportion your expenses.

The following scenarios can help you understand eligibility.

Enrolled nurse to registered nurse: eligible to claim

Declan has a Diploma of Nursing and is employed as an enrolled nurse. He is currently studying a Bachelor of Nursing to become a registered nurse. While Declan’s current and future role both involve nursing, Declan’s studies will maintain and improve his existing knowledge. Since his income will likely increase after completing the degree, Declan can claim his self-education expenses. 

Teacher’s aide to teacher: not eligible to claim

Teri is a teacher’s aide at a primary school and is studying a Bachelor of Education to become a teacher. While Teri currently works alongside teachers, completing her degree and becoming a teacher would significantly change her work activities – she would effectively be changing jobs. As there isn’t a sufficient connection between her current role and her studies, Teri can’t claim her self-education expenses.

What you can claim

If you meet the eligibility criteria you may be able to claim a deduction for:

• tuition, course or seminar fees incurred in enrolling in a full fee paying place;
• general course expenses (eg stationery, internet usage);
• depreciation on assets like laptops;
• transport costs between home or work and your place of study;
• accommodation and meals when your course requires you be away from home for one or more nights; or
• interest on loans where you use the funds to pay for deductible self-education expenses.

It’s important to remember you can only claim a deduction for the portion of your expenses that are directly related to your self-education.For example, if you use assets for both study and private use, you’ll need to apportion the costs.

If you’re unsure whether your study plans make you eligible to make a claim at tax time, check in with your financial adviser or explore the resources available on the ATO website.

Source: www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/education-training-and-seminars/self-education-expenses