Private ruling: Self - Education Expenses
Date of advice: 27 November 2025
Published: 19 January 2026
Ruling period: 30 June 20XX | 30 June 20XX | 30 June 20XX
Date scheme commenced: DDMMYY

Ruling: Q1: Can you claim self-education expenses incurred in studying the course under section 8-1 of the Income Tax Assessment Act 1997 (ITAA1997)? | A1: Yes. Your self-education expenses will be deductible under section 8-1 of the ITAA 1997. The expenses you incur to complete the course will allow you to improve the knowledge and skills required to carry out your income-earning activities and are likely to lead to an increase in income from your employment. The course has the relevant connection to your income earning activities, and did not enable you to get employment, to obtain new employment or to open up a new income-earning activity. To claim a deduction for a work-related expense, you must have spent the money yourself and weren't reimbursed. Further information about self-education expenses can be found in Taxation Ruling TR 2024/3 Income tax : deductibility of self-education expenses incurred by an individual. However, you are not entitled to a deduction for self-education expenses if you are not undertaking income-earning activities to derive assessable income at the time you incurred the expenses. These expenses are not connected to any income-earning activity at the time they are incurred.

Relevant facts and circumstances: You are currently employed working full time. You have been advised to do complete a master's course. You would complete the course at a State University and continue to work full time in your current job. The master's course starts MM YY and finishes in MM YY. Completing the course will help to improve your current skills. Completing the course is likely to lead to an increase in pay. You are looking to apply for a HELP-FEE loan to fund your course.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income. You are entitled to claim a deduction for your self-education expenses, in the income year the expenses are incurred. It is determined that there is sufficient nexus between the master's course and your current income earning activities and it is accepted the self-education study meets the requirements detailed in Taxation Ruling TR 2024/3 Income Tax: deductibility of self-education expenses incurred by an individual. | Detailed Reasoning - Detailed reasoning: Section 8-1 of the ITAA 1997 provides: 1) You can deduct from your assessable income any loss or outgoing to the extent that: a) it is incurred in gaining or producing your assessable income; or b) it is necessarily incurred in carrying on a business for the purposes of gaining or producing your assessable income. 2) However, you cannot deduct a loss or outgoing under this section to the extent that: a) it is a loss or outgoing of capital, or of a capital nature; or b) it is a loss or outgoing of a private or domestic nature; or c) it is incurred in relation to gaining or producing you *exempt income or your *non -assessable non-exempt income; or d) a provision of this Act prevents you from deducting it. To be deductible under section 8-1 of the ITAA 1997, the expenditure must be able to be characterised as having been incurred in gaining or producing assessable income. This means there must be a relationship, or close connection, between the expenditure and what it is that you do to produce your assessable income. | Detailed Reasoning - Nexus between the course you intend to study and your current position: Your employment duties have a sufficient nexus with the master's course provides a structured pathway to strengthen and expand your capabilities. Management of complex conditions. Modules focusing on practice application, research, leadership, and quality improvement will support you in delivering safer, more efficient, and evidence-informed care. | Detailed Reasoning - Types of Self Education expenses you can claim:: • Tuition, course, conference or seminar fees • General course expenses • Decline in value of depreciating assets • Car and other transport expenses The Commissioner's view on the deductibility of self-education expenses is contained in Taxation Ruling TR 2024/3 Income tax: deductibility of self-education expenses incurred by an individual . In your case you are a working in the same industry, and you intend to commence studying your course related to your current position of employment. There is sufficient nexus between the course and your current employment therefore, you can claim self-education expenses incurred in studying the course under section 8-1 of the ITAA1997.

Question: Can you claim self-education expenses incurred in studying under section 8-1 of the Income Tax Assessment Act 1997 (ITAA1997)?