Self-education deductions for sole traders: courses, certifications and conferences

The connection test

Self-education is deductible when there is a sufficient connection between the study and your current income-earning activity. That means one of:

• The course maintains or improves the specific skills or knowledge you use in your business now.
• The course is likely to lead to an increase in income from your current business.

An electrician doing a solar installation course, a copywriter doing an SEO course, a physio doing a dry-needling certification, a photographer learning video editing to offer a new service to existing clients: deductible. A bookkeeper studying to become a lawyer, a tradie doing a real estate licence, or anyone studying to open a business they have not started: not deductible, because the study relates to a future activity rather than the current one.

What you can include

• Course, tuition and exam fees, including short courses, TAFE, university and online programs.
• Textbooks, journals, stationery and course materials.
• Software and subscriptions required for the course, at the business share.
• Travel to and from the course or conference, including flights, and accommodation and meals if you stay overnight. See travel and accommodation deductions.
• The business share of a computer or tablet used for study, written off or depreciated.
• Internet and phone at the business share, unless you use the working-from-home fixed rate, which already includes them.
• Conference and seminar registration, and industry association training.

Membership fees for professional associations and subscriptions to trade publications are deductible separately as business expenses, regardless of any course.

What you cannot include

• Repayments of a HELP or other government study loan. The course fees themselves may be deductible if they meet the connection test and were paid through FEE-HELP or upfront, but fees for a Commonwealth-supported place (HECS-HELP) are not.
• Study to get into a new occupation or business.
• Meals and accommodation when you are not travelling overnight.
• The private share of any equipment.
• Childcare while you study.

Until 30 June 2022 the first $250 of some self-education expenses was not deductible. That rule has been removed, so the whole amount is now claimable from 2022-23 onward.

Licences, registrations and mandatory training

Renewing a licence or registration you need to keep operating (electrical licence, AHPRA registration, working-with-children check renewal, food safety supervisor certificate, first aid refresher) is a deductible business expense, not self-education, and does not need the connection test beyond being required for your work. Getting the initial licence to enter an occupation is generally not deductible.

Conferences and overseas study

An industry conference interstate is deductible if its subject matter relates to your business: registration, flights, accommodation and meals while away. If you add holiday days, apportion: the flights may still be fully deductible if the conference was the main purpose, but the extra nights and meals are private. Keep a travel diary for trips of six or more nights. Overseas conferences follow the same logic and attract the same scrutiny, so keep the program and your notes.

GST and records

Most Australian courses that are not recognised educational qualifications carry GST, which you can claim on the BAS if registered; many accredited courses at TAFE and universities are GST-free, so check the invoice. Keep the invoice, the course outline (it shows the connection to your business), receipts for materials and travel, and a note of how the study relates to your current work. FlowFi categorises training providers and conference registrations from your bank statement and attaches the receipt to the transaction.