Work expenses

Education expenses against a taxable scholarship

Self-education expenses directly connected with earning a scholarship that is included in assessable income.

Reviewed 30 July 2026Income years 2025-26 and 2026-27

Who can claim

This deduction is available to individuals.

  • The scholarship is included in assessable income.
  • The education expense is directly connected with earning that taxable scholarship income.

What you cannot claim

  • Expenses against an exempt scholarship are not deductible under this rule.
  • HELP repayments, private living costs and reimbursed expenses are excluded.

How the amount is worked out

Claim the eligible expense directly connected with the taxable scholarship, applying the ordinary apportionment, asset and travel rules.

Records the ATO expects

  • Taxable scholarship statement
  • Course invoices
  • Study and expense connection

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:

Next steps