How students can maximise tax deductions on postgraduate study

Selecting the appropriate course for self-education expenses involves not only considering career outcomes but also making informed financial decisions. That’s where the UTS Online experience stands out.

UTS Online postgraduate courses are designed for working professionals, which means they’re typically aligned with your current role and industry. This alignment is key when it comes to tax deductions, as the Australian Taxation Office requires your study to directly relate to your existing employment in order to claim eligible expenses.

Because of this, many UTS Online students may be in a strong position to claim aspects of their study depending on individual circumstances, including some tuition fees, study materials, and certain ongoing costs.

With courses designed in collaboration with industry and a strong focus on emerging areas like AI, sustainability, and digital transformation, you’re gaining more than just a qualification; with UTS Online, you’re building skills that are immediately relevant and in demand while future-proofing your career.

Of course, tax rules can be complex, and everyone’s situation is different. If you’re unsure what you can claim, how FEE-HELP applies to you, or which course best aligns with your current role, speaking to an expert can make all the difference. 

Tax deductions for students in Australia

The Australian Taxation Office (ATO) defines study-related items that tertiary students can claim as self-education expenses on their tax return. 
These include the costs of undertaking courses run by educational institutions, professional bodies, and industry organisations, as well as work-related conferences, seminars, and self-guided study.

There are strict criteria defining which self-education expenses can be claimed on your tax return. The most important of these is that costs must be for educational activities that are directly connected to your current income-earning employment.

This means that the study taken must:

• Maintain or improve skills or knowledge needed for your current employment, and/or
• Increase your income (or likely income-earning potential) from this employment

The bottom line is that, in order to claim self-education expenses, you must be studying and working in a related job at the same time. Note that if only part of your study is directly related to your current employment, such as one or more particular units in a course, you can only claim the expenses of this component.

Situations in which you cannot claim a deduction for work-related self-education expenses include:

1. When your study isn’t directly connected to your current employment.
2. If the study is only loosely connected (for example, a fitness course for a construction worker).
3. If you are unemployed.
4. If you lose the relevant job while studying (in which case you can only claim study expenses for the time you had the job).
5. If the course leads to a new or different job (such as a nurse studying psychology).

What are the common expenses students can claim?

Once you’ve worked out whether the costs related to a course, unit of study, or other learning activity are claimable as self-education expenses, you can start to delve into which specific expenses are tax-deductible.

These are divided into broad categories.

Tuition fees

For full-fee-paying UTS students, tuition and course fees for studies directly connected to current employment may be claimed as a tax deduction. This includes both study paid upfront and study funded via government loan schemes such as FEE-HELP and VET Student Loans (for vocational education and training).

These course fees include individual subject costs, as well as other student and amenities fees which cover non-academic support and services such as recreation, health, counselling, student clubs and employment services. For the student loan schemes mentioned above, the full amount of tuition fees is tax-deductible on the date that they are legally incurred, which is usually the census date.

This means they can be claimed on the tax return relevant to that date. Fees for conferences, seminars or employment-related courses offered by other educational providers can be claimed as tax deductions, provided they are paid for by the attendees themselves.

Tuition and course fees, which cannot be claimed as tax deductions, include:

• Compulsory and voluntary repayments for government study loans.
• Tuition fees paid upfront and via HECS-HELP for Commonwealth Supported Places (CSPs) at universities and other higher education institutions.
• Conference and seminar fees, along with other education expenses paid for by your employer.

The following example illustrates these regulations:

John, Master of Education

John, an experienced teacher and year-level coordinator, was recently promoted to a deputy principal role at his school. To improve his skills for this role, he enrols in a Master’s of Education as a full-fee-paying student using the FEE-HELP scheme.

John studies one unit in his first semester and incurs a $9,000 tuition fee for the unit on the census date in March. This full amount can be claimed as a tax deduction for the year in which that census date falls. 
As John’s income exceeds the FEE-HELP threshold, he begins repaying his loan from his first year of study. In his first year, he incurs a compulsory repayment of $540 and decides to make an additional voluntary repayment of $2,000. Neither of these amounts is tax-deductible.

John’s university charges an annual student services and amenities fee of $400. This amount is tax-deductible in each year he makes this payment.

Study materials and tools

There are many different materials and services needed for study that can be claimed as tax deductions. Although these expenses are often small, once added together, they can have a big impact on your tax bill.

Examples include:

• Stationery and textbooks
• Computer consumables, for example, paper and printer cartridges
• Computer software and digital application fees
• Student union fees
• Equipment repairs, such as for laptops and technical instruments
• Subscriptions to academic, trade or professional journals

There are also larger items needed for the study that can be classified as depreciating assets. Depreciation means assigning a dollar figure to an asset’s decline in value over time, which is then divided into annual amounts to be claimed as tax deductions. 

This is generally for more expensive equipment owned over longer periods, including:

• Computers, laptops, tablets and printers
• Furniture such as desks, chairs, bookshelves, filing cabinets and desk lamps
• Calculators
• Technical instruments and tools

There are specific rules and methods for calculating the depreciation of relevant assets. For items costing less than $300, the full cost can usually be claimed in the year of purchase, as long as they're used solely for work-related study. If use is mixed, only the relevant portion can be claimed, such as 50 per cent of the value of a table, which is used equally for study and personal needs.

For items costing over $300, depreciation must be calculated over the asset's effective lifespan. This can be done using the ATO’s depreciation and capital allowances tool, which uses basic information about the asset to calculate a deductible decline in value for each year of its life.

The useful lifespan of most relevant items is defined in an “effective life determinations” table, for example, two years for laptops and ten years for chairs. As noted above, if the asset is used for both study and other purposes, only the portion relevant to study can be claimed.

Transport and travel expenses

Travel expenses for work-related self-education activities can often be claimed as tax deductions. This includes costs for driving, parking, and using public transport and covers travel between your home, workplace, and place of education.

As defined by the ATO, deductible travel expenses for study include:

• Return trips between your home and your place of education
• Return trips between your work and your place of education
• The first leg of the trip from your home to your place of education, and then to work
• The first leg of the trip from your work to your place of education, and then home
• Parking fees at the education venue

Eligible public transport and parking fees are fully deductible. Car expenses for a car that you either own or lease must be calculated via the ATO’s car expenses calculator, using either the “cents per kilometre” or “logbook” method.

Here is another example.

Angela, Graduate Certificate in Acute Care Nursing

Angela is a nurse who works in acute and emergency care in a hospital. She enrols in a Graduate Certificate in Acute Care Nursing as a full-fee paying student to improve her skills.

Her weekly on-campus studies are spread out over one full day and two mornings.

For each full day of study, she drives to and from her home and university and pays for on-campus parking. On these days, her car and parking expenses are both tax-deductible.

For the study mornings, she takes the train from home to university, then the bus to work at lunchtime and the bus home in the evening. On these days, only her train fares (the first leg of each journey) are tax-deductible.

Online study and other deductible expenses

Other tax deductible expenses for work-related study include:

• Home office running costs such as the study-related portion of internet and phone bills (excluding connection fees)
• Student membership fees for relevant professional or industry organisations
• The costs of accommodation and meals for short-term study activities that require one or more nights away from home, such as conferences
• Interest on loans used to pay for deductible self-education expenses, such as tuition fees or study equipment

What are the expenses students can’t claim?

To avoid common misconceptions about tax-deductible expenses for work-related study, it’s important to fully understand the relevant guidelines.

You can get started on this by researching them on the ATO’s website and working out your eligibility and estimated deductions using the self-education expenses calculator.

Study related costs that cannot be claimed on your tax return include:

• Tuition fees for Commonwealth Supported Places (CSPs) at universities and higher education institutions, either paid upfront or via a HECS-HELP loan
• Repayments for study loans (including FEE-HELP, HECS-HELP and VET Student Loans)
• Study expenses that are paid or reimbursed by an employer or other third-party
• Expenses for study that are not directly connected to your current employment (such as a course undertaken for career change or personal development)

Why is keeping records essential for successful tax claims?

In order to complete your annual tax return in a way that is straightforward, accurate and stress-free, it’s vital to keep detailed records.

There are two main reasons for this. First, good record-keeping enables you to organise your tax return and ensure all eligible deductions are claimed. Second, while Australia’s tax system relies on self-assessment, the ATO can review your return and remove any deductions that are claimed without supporting evidence.

Keeping financial records is critical for resolving disputes and avoiding penalties in these cases. Records required for study-related deductions include:

• Receipts
• Invoices
• Bills, such as phone and internet
• Logbooks, such as for car travel
• Spreadsheets with information you enter throughout the year
• Loan, interest and repayment documents
• Study documents, such as enrolment and fee notices
• Employment documents, such as contracts, payslips, timesheets and duty statements
• Calculation records, such as for depreciation and other ATO calculators

Record-keeping tools like the ATO’s myDeductions app can help you to stay organised for tax time throughout the year. They provide an easy and convenient way to keep all your records in one place and are highly recommended for people with multiple types of tax deductions, such as working UTS students.

Not sure what you can claim? Get personalised guidance

Understanding what you can and can’t claim on your tax return isn’t always straightforward, especially when you’re balancing work, study, and long-term career planning. That’s why UTS Online offers access to dedicated Student Enrolment Advisors who can help you navigate your options.

Our team can talk you through course suitability, how study may align with your current role, and what that could mean from a financial perspective, all so you can make a confident, informed decision.

If you’re considering postgraduate study and want to ensure you’re making a smart investment in your future today, now is the time to take the next step!

Speak to a UTS Online advisor today or call 1300 477 423 to explore your financial aid options and get clarity on what you may be able to claim.