What tax deductions can I make if I return to uni to upskill?

Thinking about postgraduate study at Charles Darwin University (CDU)? It’s a great way to advance your career and improve your earning potential — and it could also come with some worthwhile tax perks.

Understanding how these tax deductions work can help make your upskilling journey more affordable.

The Australian Taxation Office (ATO) lets you claim self-education expenses when your studies are directly related to your current job. The course must improve your existing skills and knowledge, or increase your potential to earn more money, in your current role.

Your course must have “sufficient connection” to your job

To claim deductions, your CDU course needs a "sufficient connection" to your current job, and you must be working while studying. Taking a career break to study full-time would disqualify you from these tax benefits.  

A course is considered to have “sufficient connection” if it:

• Maintains or improves the skills or knowledge you need in your current job. For example, a project manager enrolling in CDU’s Graduate Certificate in Project Management could claim deductions, while an unrelated Master of Business Administration will not, although costs around specific course units that directly apply to their role may be.
• Is likely to lead to a higher income from your current employer. For instance, a midwife completing CDU’s Graduate Diploma of Midwifery could move into higher-paid roles like a midwifery educator or manager. Similarly, an enrolled nurse studying the Bachelor of Nursing to become a registered nurse would meet the criteria.

Generally, you can’t claim deductions for studies intended to help you get a new job or switch careers.

What study expenses can you claim?

If your CDU course qualifies, you may be able to claim a range of education expenses, including:  

• Course fees: Tuition for full fee-paying places is claimable. Commonwealth Supported Places (CSPs) paid through HECS-HELP are not.
• Course materials and equipment: Textbooks, academic journals, stationery, and items like desks, chairs and lamps used for work-related study. You can claim the work-related study component immediately if an item costs $300 or less. You can also claim phone calls, postage and student union fees.
• Depreciation on work-related study assets: Laptops are assessed based on their decline in value and proportion of study use. Other tax-deductible assets include desks, chairs, filing cabinets, bookshelves, calculators, technical instruments, tools and even desk lamps.
• Internet use: The portion of your home internet bill used for study.
• Travel expenses: Travel from home or work to CDU to attend lectures, tutorials or intensives, but generally not the return journey. Accommodation and meals for overnight stays may also be deductible. You can even claim parking fees.
• Interest on loans: If you borrow money to pay for your studies.

For a complete list of eligible expenses, visit the ATO website.

Other things to think about:

• Employer contributions: You can’t claim expenses reimbursed by your employer.
• Loan repayments:  HECS-HELP repayments aren’t deductible. However, you may claim tuition fees for full-fee-paying places, even when using a FEE-HELP loan.
• Record keeping: The ATO requires receipts and documentation linking your studies to your current job, such as course fees, textbooks or employer letters. Tools such as the ATO's myDeductions app, which can log receipts, invoices, and even car trips, can help you manage these records.
• Scholarship payments: Some scholarships are tax-exempt, but if the scholarship is linked to a business likely to benefit from the research, the payment may need to be declared. Check with the ATO if you are not sure.
• Due date: Your tax return covers income from 1 July to 30 June each year, also known as the financial year. If you need to complete a tax return, you must lodge it or engage with a tax agent by 31 October.

How CDU can help you upskill

CDU offers flexible, industry-relevant programs, from short professional development courses to postgraduate degrees, designed to fit around your work, family, and life.

By choosing a CDU course aligned with your current role and career ambitions, you’re not just growing your skills but making a smart financial move supported by the tax system.

Postgraduate options include graduate certificates, graduate diplomas, master’s degrees, research programs and doctorates, all designed to help you take the next step in your career.

Disclaimer: The information provided in this article is general in nature and does not constitute financial or tax advice. Tax laws are complex and subject to change. It is recommended that you consult with a registered tax agent or the ATO directly to determine how these rules apply to your specific circumstances before making any decisions.