Can You Claim Course Study Costs on Tax in Australia? A Complete Guide
January 25th, 2026
Business CareersCareer Advice
Many working Australians invest in study and courses to strengthen their current capabilities, improve performance, and position themselves for higher responsibility. Where that study has a sufficient connection to current income-earning activities, the tax law may allow a deduction for eligible self-education expenses, reducing taxable income and the tax payable.
This article provides a decision framework you can apply before you claim, a clear breakdown of common deductible and non-deductible costs, and practical record-keeping guidance. It is general information only; for advice tailored to your circumstances, consult a registered tax agent.
What is self-education? Self-education includes learning activities you undertake to build your knowledge or skills, such as studying a course through an education provider, attending work-related seminars or conferences, or completing self-paced courses.
1) Start with the core rule: connection to current income matters
A self-education deduction generally depends on whether the course maintains or improves skills used in your current income-earning activities, or is likely to increase your income from those activities. It depends on facts and evidence.
Australia’s Treasury has described the current settings similarly: a deduction is available where the education activity is directly connected to the income arising from current employment activities (maintains/improves skills, or leads to increased income in current employment), but not where the study is to move into a new line of work.
The ATO consolidated these principles in its current ruling on self-education deductions (TR 2024/3).
2) Eligibility quick test
Use this table as a first-pass check. If you land in the right-hand column, the claim is higher risk or generally not available.
| Practical test | Likely outcome | What to document |
|---|
| Course upgrades qualifications used in your current job | More likely deductible | Position description, performance plan, employer expectations, and examples of duties needing the skills |
| The course improves specific skills/knowledge used now | More likely deductible | Work samples, learning outcomes mapped to tasks, and evidence of application at work |
| The Course is likely to increase income in your current role (e.g., new pay scale, promotion track) | More likely deductible | Enterprise agreement/classification evidence, promotion criteria, remuneration policy |
| The course is only loosely related or aimed mainly at career change/new employment | Often not deductible (connection too weak / “new income-earning activity”) | If you still claim, retain a written rationale and strong evidence of current-role linkage |
3) What you can typically claim (and what you generally cannot)
The key is to claim only the self-education-related portion, and apportion where there is mixed private use (for example, internet or equipment).
Claimability table
| Expense type | Generally deductible (if eligible) | Common exclusions/pitfalls |
|---|
| Course fees | Often claimable | Payments from personal savings or loans taken out to pay for courses. If eligable this forms the bulk of your deduction |
| Textbooks, stationery, professional journals | Often claimable | Keep receipts; demonstrate relevance to course/work (ICI bundles all costs into the course fee. No additional fees are due) |
| Depreciation (decline in value) for study equipment (e.g., computer) | Often claimable (apportioned) | Must apportion private use; keep usage basis and depreciation method notes |
| Repairs to assets used for study | Often claimable (apportioned) | Cannot double claim if amounts already included elsewhere; evidence required |
| Internet and running costs for a dedicated study area | Potentially claimable (apportioned) | Requires a defensible percentage split and contemporaneous basis (usage logs are best practice) |
| Travel/accommodation/meals for eligible study tours, work-related seminars/conferences away from home | Potentially claimable | Normal travel between home and your place of education. Not applicable to ICI as all courses are online. |
| Student services/amenities/union fees | Potentially claimable | Ensure it is an expense you paid and were not reimbursed for. Not applicable at ICI |
4) A simple “tax value” chart (why accurate claims matter)
A deduction reduces taxable income; the dollar benefit depends on your marginal tax rate (and other factors). The point is not to “over-optimise” but to understand that correct claims can be material.
Illustrative benefit of a $5,000 eligible deduction (tax saving only):
| Marginal tax rate (illustrative) | Approximate tax saving |
|---|
| 19% | $950 |
| 32.5% | $1,625 |
| 37% | $1,850 |
| 45% | $2,250 |
This is a simplified illustration (it does not model Medicare levy, offsets, or income thresholds). The decision relevance is that substantiation and correct apportionment are worth doing properly.
5) Record-keeping that stands up to review
You must keep receipts and demonstrate how the course relates to your current role; for depreciating assets, keep records of cost, depreciation method, effective life assumptions (if varied), and the basis for your study-use percentage.
A practical record pack is set out below.
| Evidence type | Examples | Why it matters |
|---|
| Proof you incurred the cost | Tax invoices, receipts, and payment confirmations | Deductions are generally not available where the cost is reimbursed or paid by someone else |
| Proof of current-role connection | PD, role statement, KPI plan, emails assigning relevant tasks | Supports the “sufficient connection” requirement |
| Apportionment basis | Internet usage notes, device usage log, timetable of study time | Defends percentage claims for mixed-use expenses |
| Asset records | Purchase date/cost, depreciation working, study-use % | Required for decline-in-value claims |
| Travel substantiation | Itinerary, conference program, attendance proof, and notes on business purpose | Helps separate self-education from private components |
6) Where ICI courses fit and how to approach deductibility conservatively
A self-education deduction is not determined by the provider or the course title. It turns on whether the course has a sufficient connection to your current income-earning activities (maintains/improves skills used now, or is likely to increase income in your current role), and whether the specific costs you claim are eligible and properly substantiated.
ICI offers a wide range of online courses across multiple disciplines (for example, business and management, travel and tourism, hospitality management, interior design, floristry, horticulture, counselling/psychology, and many others). The relevance to tax deductibility depends on how directly the learning outcomes map to what you do at work today.
| If your current role involves… | Examples of potentially relevant ICI course areas to your current work | Evidence that typically strengthens the connection (keep with your tax records) |
|---|
| Managing teams, budgets, and commercial decisions | MBA or business courses | Position description, KPIs, evidence you manage budgets/people, performance plan, examples where the new capability is applied |
| Tourism, travel operations, agency work, destination products | Travel & Tourism | Duty statements showing travel/tourism responsibilities, employer expectations, workflow artefacts (itineraries, supplier management, compliance) |
| Hotel/venue operations, revenue, service design, staff supervision | Hospitality Management | Rostering/operations responsibilities, service standards, training responsibilities, performance reviews referencing operational uplift |
| Design services, client briefs, and interiors project delivery | Interior Design & Decoration | Client work samples, scope documents, and role statement showing design outputs or project responsibilities |
| Floral/event production work, studio operations, client servicing | Floristry | Evidence of paid floristry/event work, job requirements, portfolio/work orders connecting the course units to your paid tasks |
| Landscape/horticulture work, maintenance planning, plant selection | Horticulture / Landscaping | Proof of paid duties in the field, SOPs, maintenance schedules, and job tasks requiring horticultural knowledge |
This table does not guarantee deductibility; it is a structuring tool to help you assess whether you can credibly demonstrate the required connection and substantiate apportionment (for mixed private/work use).
7) Global context: why countries use and scrutinise education tax incentives
Education-related tax settings are part of a broader policy toolkit to support skills development. The OECD has noted that Australia’s self-education tax deduction is one of several financial incentives to promote adult learning, and has discussed design trade-offs such as time barriers and targeting.
This matters for taxpayers because education deductions are policy-relevant and routinely scrutinised: strong evidence, disciplined claiming and seeking tax advice from a registered Tax Accountant are the correct way to go about it.
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See our coursesElizabeth Hartwell is a content developer at the International Career Institute. Her interests include comparative education systems, lifelong learning, and the role of technology in expanding access to skills and credentials worldwide. She is particularly drawn to the relationship between education, policy, and workforce mobility. Outside of writing, Elizabeth enjoys contemporary non-fiction, cultural history, and travel, with a particular interest in museums and architecture.
