How to claim tax deductions for your MBA

With the end of the financial year fast approaching, the question many students are asking is; am I able to claim tax deductions for my studies? In many cases, working adults undertaking self-education are entitled to a number of deductions based on their motives for study. To be able to claim for the expenses, the self-education must relate directly to your current field of work, for example completing an MBA program that you know will be likely to lead to an increase in your employment income. Whilst personal eligibility is something only the Australian Taxation Office (ATO) can advise, you should keep the below four areas in mind when looking to claim tax deductions during your MBA.

Please note this article was published in 2022 for the 2021-2022 financial year and some of the information may not reflect the most current updates. For the most up-to-date information, please refer to the Australian Tax Office website.

Also read: Claiming a deduction for self-education expenses

1. Tuition fees

Regardless of which business school you study with, the MBA is a significant career investment. Whether you’ve chosen to pay in full or under the government funded FEE-HELP scheme, you’ll be pleased to know that it is possible to claim tax deductions during your MBA when it comes to the tuition fees. If eligible, this amount can also include fees for activities such as student services, amenities and union fees.

2. Textbooks

With each MBA subject usually comes the purchase of at least one high quality textbook or e-textbook. If you are eligible, tax deductions can be claimed on these books, as well as items such as stationery and professional or trade journals.

3. Internet bills

In the online world of today, both distance learning and on-campus students will spend a great deal of their time on the internet. From conducting research for assignments to participating in online discussion boards – internet bills can be claimed as a proportion of self-education versus private use of the total cost.

4. Study room expenses

When studying from home, it is likely that you will have a room set aside for your self-education purposes. It is therefore possible to claim tax deductions during your degree for costs such as heating, cooling and the lighting of that room whilst you are studying in it. Depreciation on capital costs of items acquired in the financial year and used for self-education purposes, such as a computer or desk, are also able to be claimed.

It’s important to note that not every student is eligible to claim tax deductions during the MBA. There is however an online self-education expenses calculator provided by the ATO, which provides some useful information to get you started.