Can You Claim Study Expenses If You’re Switching Careers?

Changing careers is exciting but can it be tax-deductible? If you're investing in education to move into a new field, it’s tempting to think you can claim those costs on your tax return. But the ATO draws a clear line between upskilling in your current role and retraining for a new one and that line matters at tax time.

Let’s unpack what the rules actually say so you don’t end up making a claim the ATO could reject.

ATO’s Take: Current Job vs. New Career

According to the ATO, you can only claim self-education expenses if the course you’re doing:

• Maintains or improves the skills you need in your current job, and

• Is directly related to your current income-producing activities

That means if you’re studying to get a new job in a different field, your course is likely not claimable, even if it helps boost your future income or makes you more employable.

The key question is: Are you doing this course to help you do your current job better or to leave it behind?

What You Can Claim (If You're Upskilling in the Same Career)

If your course is genuinely linked to your current employment, you may be able to claim:

• Course or tuition fees (only if you’re not reimbursed)

• Textbooks and stationery

• Internet and phone usage for study

• Depreciation on equipment (like laptops)

• Travel between work and your place of education

But keep in mind: you can't claim repayments on HECS-HELP or FEE-HELP loans. That’s a common trap.

Real-World Case Study: Claim or No Claim?

✅ Anna: Studying a Master of Marketing 

• Current role: Marketing executive at an eCommerce company

• Course: Master’s in Marketing and Digital Strategy

• Outcome: Claim approved, The course is building directly on her current role

❌ James: Studying Nursing to Change Careers

• Current role: Retail manager

• Course: Bachelor of Nursing

• Outcome: Claim denied, It’s a career change, not upskilling for his current job

So What Can Career Changers Do?

While you can’t claim your course, there are still legal ways to optimize your tax:

• Keep records of any other work-related deductions (tools, home office items, uniforms)

• Track vehicle or travel costs if they’re directly work-related

• Consider a trustable tax advisor like Precent to see if any of your career transition costs (e.g. resume services, career coaching) fall into a grey area worth exploring

In Summary

If you’re switching careers, it’s important to understand that your study expenses likely won’t be deductible. The ATO only allows claims that tie directly into your current job, not your future one.

But that doesn’t mean you’re out of options. With the right advice, you can still reduce your taxable income legally and smartly.