Who can claim
This deduction is available to individuals and companies.
- The expense is incurred in carrying on an existing income-producing business.
- Any private, capital or non-income-producing component is reasonably apportioned or excluded.
- Employee training is connected with the employee's current duties or the activities of the existing business.
- For a sole trader or individual business owner, the study maintains or improves specific skills or knowledge used in the current income-earning activity, or is likely to increase income from that current activity.
What you cannot claim
- Do not include private drawings or personal expenses.
- Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense.
- Private education, pre-business training and study directed to a new or different income-earning activity are excluded from an ordinary deduction.
- Travel, equipment and depreciating assets connected with training must use their applicable calculation rules.
How the amount is worked out
Claim the eligible business component of employee training or qualifying owner education. Apportion mixed-purpose study and apply the separate travel and asset rules to related costs.
Records the ATO expects
- Course invoice
- Attendee and employment record
- Current duties or business-activity connection
- Travel and asset records where relevant
Where this rule comes from
Primary source: Income Tax Assessment Act 1997 section 8-1 (Section 8-1). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO business income and deductions (Updated 1 June 2023)
- ATO self-education expenses (Updated 16 June 2025)