Can you claim your MBA on tax?

What you need to know about education deductions in Australia

Thinking about doing an MBA or another professional qualification? If you're already working, there's a good chance some of your study costs could be tax-deductible – but the rules aren't as straightforward as you might think.

The Australian Taxation Office has specific requirements around what counts as a deductible expense, and getting it wrong could mean missing out on legitimate deductions or facing penalties down the track.

At Fortuna Advisory Group, we help clients work through these rules before they enrol, so they know exactly where they stand come tax time.

The first question: How are you paying for it?

Not all education loans are treated the same way for tax purposes:

HECS-HELP courses = no deduction If your course is Commonwealth-supported (like most undergraduate degrees and some postgraduate programs), you can't claim a deduction – even if you pay upfront. The legislation specifically excludes HECS-HELP fees, regardless of how relevant the course is to your job.

FEE-HELP or self-funded courses = potentially deductible full-fee courses may be deductible if there's a clear link between what you're studying and your current work. Keep in mind though: you can only claim the course fees when they're incurred, not when you make loan repayments.

Your loan statement will show which type you have – this is the starting point for working out if you can claim.

The "connection" test: Does your study relate to your current job?

Even if you're on a FEE-HELP loan, the ATO won't automatically allow the deduction. You need to demonstrate that your study either:

• Maintains or improves skills you're already using in your current role, or
• Is likely to lead to increased income in your existing job

The key word here is existing. If you're retraining for a completely new career, the deduction generally won't apply.

Sometimes it's a grey area – certain subjects within a broader course might qualify while others don't. This is where keeping detailed records becomes important.

What about employer contributions and loan repayments?

A few things to keep in mind:

• If your employer gives you a study allowance, that's assessable income (just like your regular salary)
• You can still claim eligible deductions for your course fees, even if you received an allowance
• HELP loan repayments aren't deductible – they're just debt repayments
• Timing matters: you claim the deduction when the expense is incurred, not when you pay off the loan

Before you claim: Four things to get right

1. Confirm your loan type – Check whether you're on HECS-HELP (not deductible) or FEE-HELP/private funding (potentially deductible)
2. Keep thorough records – Your course outline, position description, emails from your employer, anything that shows the link between your study and your current work
3. Only claim what applies – Course fees, textbooks, and travel costs directly related to your job may be deductible, but be specific
4. Be ready for questions – Larger claims often get ATO attention. If you're claiming significant amounts, it might be worth getting a private ruling for certainty

How we can help

Further study can be a great investment in your career, and if structured correctly it may also deliver tax benefits. But the rules need to be followed carefully.

If you're planning to study or you're unsure whether your education expenses are deductible, our tax team can walk you through your specific situation and help you avoid costly mistakes.

A conversation before you enrol – or before you lodge your return – could make a real difference to both your professional development and your tax position.

Get in touch with Fortuna's tax team to discuss your education expenses and ensure you're claiming correctly.

✉️info@fortunaadvisors.com.au

📞(08) 9240 4211

🌐https://www.fortunaadvisors.com.au/