Private ruling: Work-related self-education expenses
Date of advice: 27 April 2026
Published: 13 July 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Will the subject course fees for the Bachelor of Nursing degree be deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No. | Q2: Are the textbooks, stationery, internet and laptop depreciation costs deductible to the extent they are used? | A2: No.

Relevant facts and circumstances: From DD MM 20YY, you were working as Role A with Employer A. You provided a detailed description of your duties. You undertook certain work as assigned by the role specific supervisor. On DD MM 20YY, you became an Australian resident for tax purposes. On DD MM 20YY, you enrolled in Course A at University A. You provided a detailed description of the course. From DD MM 20YY, you have been employed by Employer B as Role B. A letter from your employer states that you are employed on a part time basis, and you have completed XX hours since commencement with Employer B. You provided a detailed description of your duties. You work under the direct supervision of the role specific supervisor. You have stated that the employment requires you to be enrolled in the degree. If you ceased the degree, you would no longer be able to continue in the role. You provided an invoice, which details the subjects undertaken in the course at University A for the sum of $XX. You provided a list of the subjects undertaken.

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

Reasons for decision: Summary: You cannot claim your self-education expenses as the attainment of the qualification will enable you to obtain new employment or to open up a new income-earning activity (whether in business or in your current employment). | Detailed Reasoning - Detailed reasoning: Work-related expenses generally fall for consideration under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997). This section allows a deduction for losses and outgoings which are incurred while gaining or producing assessable income, unless the losses or outgoings are of a capital, private or domestic nature. 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 accordance with TR 2024/3, expenses of self-education will satisfy the requirements of section 8-1 of ITAA 1997 if: • a taxpayer's income-earning activities are based on the exercise of a skill or some specific knowledge, and the self-education enables the taxpayer to maintain or improve that skill or knowledge ( FC of T v. Finn (1961) 106 CLR 60;(1961 12 ATD 348) ( Finn's Case ); or • the study of a subject of self-education objectively leads to, or is likely to lead to, an increase in a taxpayer's income from their current income earning activities in the future ( FC of T v. Hatchett (1971) 125 CLR 494; 71ATC 4184; (1971) 2ATR 557 ( Hatchett's Case ). Therefore, provided there is sufficient connection between a course of self-education and current income earning activities, you are entitled to claim a deduction for your self-education expenses. However, self-education expenses will not be deductible if the study is intended to: • enable you to get employment • enable you to obtain new employment, or • to open a new income-earning activity (whether in business or in your current employment). In the case of Assefa v FC of T [2009] AATA 2 ( Assefa's case ), it was considered whether studying a course of education in order to advance to a higher classification of nursing was opening up a new income earning activity. The taxpayer in this case was employed as an assistant in nursing and a care service employee while studying a Bachelor of Nursing degree. The Administrative Appeals Tribunal held in Assefa's case that no deduction was allowable for the self-education expenses. It was determined that there was a significant difference between the position of enrolled nurse and registered nurse on one hand, and personal care assistant/nursing assistant on the other. The taxpayer was not considered to be incurring the expenditure in gaining or producing her assessable income as a personal care assistant/nursing assistant but was studying towards their initial qualification as a registered nurse. | Detailed Reasoning - Application to your circumstances: You have enrolled in a course of education. This degree will enable you to be a registered professional upon successful completion of the course. The study enables you to open up a new income producing activity. The subject fees, textbooks, stationery, internet and laptop depreciation costs are therefore not an allowable deduction under Section 8-1 of the ITAA 1997 as the course does not have the relevant connection to your current employment.