Can I Claim Training & Self-Education as a Business Expense in Australia?
Yes, self-education and training expenses are deductible if they maintain or improve skills used in your current income-earning activity. Training to qualify for new work is generally not deductible.
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What Australian Taxation Office (ATO) says
Self-education expenses meet the 'sufficient connection' test in TR 2024/3 if they maintain or improve specific skills required in current employment, or are likely to lead to increased income from current activities. Training that opens up a new income stream is capital and not deductible. The ATO tests the connection between the course and the person's current income-earning activities. A course that maintains or improves the skills used now meets the test. A course that leads to a new job or a new field does not. Records needed are the receipts, a description of the course and a link to the current work. Where a course has both private and work parts, the cost is apportioned. Self-education costs include tuition, textbooks, stationery, computer running costs and travel between home and the place of study in some cases.
When you can claim
- Conference fees and travel (sustenance/travel rules apply)
- Industry certifications (CPA, CFA, Microsoft Certified, AWS)
- Professional development courses
- Books and journals related to current work
- Short courses and webinars that keep a licence or registration current
When you cannot claim
- MBA where there is no current management role
- Training to open up a new profession
- HECS-HELP repayments (different system, not a deduction)
- The cost of travel to a course in another city when the trip is mainly personal
- Fees for a course that leads to a different occupation, even if some modules are useful
Good to know
Pro tip: Write one line on the invoice: what the course is, what the person does today, and how the course helps with that. This single note answers most ATO questions.
Important: Courses paid for by an employer are not deductible to the employee, and a business paying for staff training can claim the cost as an ordinary expense.
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