If you’re planning to upskill or undertake professional development this year, you might be eligible 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 obtain a formal qualification).
• Undertake training provided by an industry or professional organisation.
• Attend work-related conferences or seminars.
• Participate in self-paced learning and study tours, either in Australia or overseas.

Are You Eligible to Claim?

To claim self-education expenses, there needs to be a sufficient connection to your current employment income. This means your study must either:

• Maintain or improve the specific skills or knowledge you use in your current role.
• Be likely to result in an increase in your income.

In some cases, only specific subjects or components of your study may be connected to your work. If that’s the case, you’ll need to apportion your expenses accordingly.

Eligibility Scenarios

Here are some examples to help clarify when you can and cannot claim:

• Example: Enrolled Nurse to Registered Nurse – Eligible to Claim
  Declan, an enrolled nurse with a Diploma of Nursing, is studying a Bachelor of Nursing to become a registered nurse. Since his current and future roles both involve nursing, and his studies maintain and improve his existing knowledge, Declan can claim his self-education expenses. Additionally, since his income is likely to increase after completing his degree, he is eligible to claim.
• Example: Teacher’s Aide to Teacher – Not Eligible to Claim
  Teri, a teacher’s aide at a primary school, is studying a Bachelor of Education to become a teacher. While she currently works alongside teachers, completing her degree and becoming a teacher would significantly change her work activities, essentially changing jobs. Since there isn’t a sufficient connection between her current role and her studies, Teri cannot 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 when enrolling in a full fee-paying place.
• General course expenses (e.g., stationery, internet usage).
• Depreciation on assets like laptops used for study.
• Transport costs between home or work and your place of study.
• Accommodation and meals when your course requires you to be away from home for one or more nights.
• Interest on loans used to pay for deductible self-education expenses.

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

Unsure About Your Eligibility?

If you’re unsure whether your study qualifies for a tax deduction, consider consulting with your financial adviser or exploring the resources available on the ATO website for more detailed information.