Self-Education Expenses

Taxation for Individuals

The costs you incur to undertake a course of study at a school, college, university or other recognised place of education are self-education expenses.

Your incurred self-education expenses may be eligible for tax deductions if you work and study. You may also be eligible if you receive a taxable scholarship.

There must be a sufficient connection between your current employment and the course you undertake to have your self–education expenses qualify as a work related tax deduction. The necessary connection between the self-education expense and your income-earning activity does not exist if a course of study is too general in terms of your current income-earning activities.

If a tax deduction for your self-education expenses related to your work as an employee is available, if you work and study at the same time and can satisfy any of these conditions:

  • You are upgrading your qualifications for your current employment – for example, upgrading from a Bachelor qualification to a Masters qualification.
  • You are improving specific skills or knowledge used in your current employment – for example, a course that will allow you to operate more machinery at work.
  • You are employed as a trainee and you are undertaking a course that forms part of that traineeship – for example, an overseas trained person employed as an intern while doing a bridging course.
  • You can show that at the time you were working and studying, your course led, or was likely to lead, to an increase in employment income – for example, a teacher who will automatically get a pay increase as a result of completing the course.

Click here for more information on Self-education expenses or contact AWT Accountants on 9303 8900 or clientlink@awtaccountants.com.au for assistance.