Private ruling: Self-education expenses
Date of advice: 11 February 2026
Published: 30 March 2026
Ruling period: Period ending DD MM YY | Period ending DD MM YY | Period ending DD MM YY | Period ending DD MM YY | Period ending DD MM YY | Period ending DD MM YY
Date scheme commenced: DD MM YY

Ruling: Q1: Are you entitled to a deduction, under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) , for the course and tuition fees you will incur undertaking a Bachelor Degree A, in the year in which these expenses are incurred? | A1: Yes. | Q2: Are you entitled to a deduction for the cost of purchasing textbooks and other necessary educational material specific to the Bachelor Degree A you will be undertaking, as self-education expenses under section 8-1 of the ITAA 1997, in the year in which these expenses are incurred. | A2: Yes. | Q3: Are you entitled to a deduction for costs incurred for travel between your home and the university campus, while undertaking the Bachelor Degree A, under section 8-1 of the ITAA 1997, as self-education expenses in the year in which these expenses are incurred? | A3: Yes.

Relevant facts and circumstances: You are employed by Company A as an Occupation A. You commenced employment with them on a full-time basis on DD MM YY. Your employer is a multi-disciplinary company in their field of speciality. You are a qualified Occupation B and Occupation C and hold a Master's degree in your field. You have multiple technical and advisory responsibilities in your current role. You are proposing to undertake a Bachelor Degree A at University A in City A. The course is designed to leverage previous study and enable graduation in a shorter period. You will acquire knowledge in various areas of the degree's field of speciality. The purpose of undertaking this degree is to develop and enhance your existing skill set and improve your ability to carry out your current duties and responsibilities. You are seeking to deepen the level of skills and knowledge you already apply in your work. Your goal is not become a practitioner in the field or commence a new occupation. You are planning to undertake the course on a part-time basis to work around your current full-time employment obligations. You are anticipating that it will take you X years to complete the course. You will undertake the course primarily in an online format which will be more appropriate for you given your work commitments and the fact that you reside in City B and the University campus is in City A. The academic year is made up of two semesters per year. Course fees are required to be paid on a term by term basis with payment due approximately 1 month after the start of term. You are intending to fund the course costs from your own financial resources and pay upfront by the relevant due dates. Your employer has provided a letter of support detailing that the degree you are planning to undertake is directly relevant to your duties within the organisation. The letter further details that the business's career progression framework recognises, and rewards continual professional development and upskilling. You've stated that any promotion or remuneration increase will be performance based. The author of the letter notes that the development and enrichment of your knowledge and skills as a result of this course of study, will enable you to perform your duties more effectively.

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. A deduction is allowable for self-education expenses if a taxpayer's current income earning activities are based on the exercise of a skill or some specific knowledge, and the subject of the self-education enables the taxpayer to maintain or improve that skill or knowledge ( Federal Commissioner of Taxation v. Finn (1961) 106 CLR 60, (1961) 12 ATD 348). Taxation Ruling TR 2024/3 - Income tax: deductibility of self-education expenses incurred by an individual sets out the rules and circumstances under which self-education expenses are allowable as a deduction. | Detailed Reasoning - Question 1: Are you entitled to a deduction, under section 8-1 of the ITAA 1997 , for the course and tuition fees you will incur undertaking a Bachelor Degree A, in the year in which these expenses are incurred? | Detailed Reasoning - Detailed reasoning: You have shown that there is sufficient connection between the course of self-education and your current income earning activities and it is accepted the study meets the requirements detailed in Taxation Ruling (TR) 2024/3 Income tax: Deductibility of self-education expenses incurred by an individual . Paragraph 98 of TR 2024/3 details that the course fees incurred in attending a university or approved higher education provider are deductible where a person is enrolled in a full fee-paying place. A deduction cannot be claimed for course fees for a Commonwealth funded place. | Detailed Reasoning - Application to your circumstances: The expenses you incurred to complete the course while you were employed with Company A allow you to improve the knowledge and skills required to carry out your income-earning activities at the time you were studying and working with your employer. You have advised that you intend to pay the course fees for your law degree from your own funds. As you will be a full fee-paying student, you will be able to claim a deduction for the course fees in the year in which you incurred them. | Detailed Reasoning - Question 2: Are you entitled to a deduction for the cost of purchasing textbooks and other necessary educational material specific to the Bachelor Degree A you will be undertaking, as self-education expenses under section 8-1 of the ITAA 1997, in the year in which these expenses are incurred? | Detailed Reasoning - Detailed reasoning: Reference books and textbooks, as well as digital subscriptions, stationary, pens and photocopying are deductible (paragraph 119 of TR 2024/3). If the subject of the self-education enables you to maintain or improve skills or knowledge or is likely to lead to an increase in income from your current income-earning activity, you can deduct an amount for the decline in value of the depreciating asset you use, or have installed ready for use, for self-education purposes. You must reduce your deduction by the extent to which you use the asset for other than a taxable purpose. Where the books, or sets of books, cost more than $300, you deduct an amount for decline in value instead of claiming a deduction in the year of purchase. See paragraphs 158 to 162 of TR 2024/3 for more on decline in value instead of claiming a deduction in the year of purchase. | Detailed Reasoning - Application to your circumstances: Any books and education materials you purchase in order to undertake your law degree can be deducted in the year in which you purchase them. Where the textbooks or educational material are more than $300 you will need to consider claiming the decline in value instead. | Detailed Reasoning - Question 3: Are you entitled to a deduction for costs incurred for travel between your home and the university campus, while undertaking the Bachelor Degree A, under section 8-1 of the ITAA 1997, as self-education expenses in the year in which these expenses are incurred? | Detailed Reasoning - Detailed reasoning: Travel expenses such as costs for travelling to and from a place of education are claimable. Only those expenses directly attributable to the self-education incurred in gaining or producing your assessable income are allowable. Taxation Ruling TR 2024/3- Income tax: deductibility of self-education expenses incurred by an individual paragraphs 148-155 discusses the deductibility of transport expenses and self-education. The Commissioner takes the view that, where the requirements for deductibility are otherwise met, the transport costs (e.g., fares) incurred in travelling between: (a) home and an educational institution and back again; and (b) the place of work and the educational institution and back again, qualify as self-education expenses as the travel is carried out with the purpose of engaging in the self-education activities. | Detailed Reasoning - Application to your circumstances: In your case, it is accepted that the cost of travelling from your home in City B, or your workplace, to the University campus in City A or other location of lectures etc, and back again are deductible.