For many domestic students, an MBA is funded by some mix of savings, employer support, FEE-HELP and a tax deduction. The two government schemes are often misunderstood. This guide explains them in plain English. It is general information, not tax or financial advice. Speak to a registered tax agent about your own situation.
FEE-HELP
What it is
FEE-HELP is a loan from the Australian Government that pays all or part of your tuition fees for a full fee-paying place at an approved higher education provider. The government pays the provider directly, and the amount is added to your HELP debt with the ATO.
Who can use it
Eligibility rules are set by the government. In general, you must be an Australian citizen or hold an eligible visa, be enrolled in an eligible course at an approved provider, and meet the other conditions set out on Study Assist. From 2026, you also need a Unique Student Identifier (USI) when starting a higher education course. Your provider can confirm whether your course is approved.
The 2026 loan limit
For 2026, the HELP loan limit for most students is $129,883. A higher limit of $186,544 applies only to certain medicine, dentistry, veterinary science and aviation courses. The limit is indexed each year.
The limit is shared across HELP loans. Your available balance is the limit, minus FEE-HELP, VET FEE-HELP and VET Student Loans you have used, minus HECS-HELP borrowed from 1 January 2020, plus repayments made through the ATO from 1 July 2019. If you already used HELP for earlier study, check your balance before you plan around FEE-HELP.
No loan fee on postgraduate study
A 20% loan fee applies to some undergraduate FEE-HELP borrowing, but not to postgraduate study, so an MBA does not attract the loan fee.
Will FEE-HELP cover the whole MBA?
Not always. Providers set their own fees, and Study Assist warns there is no guarantee a course will cost less than the HELP loan limit. Some MBAs, especially executive programs, may cost more than your available balance. You would need to pay the difference up front.
Census dates
Your FEE-HELP debt for each unit is incurred on the unit's census date. If you withdraw before the census date, you usually do not incur the debt. Note census dates for every unit, especially in online programs with short teaching periods.
Repayment
You repay HELP debts through the tax system once your income is above the repayment threshold. The ATO sets thresholds and rates each year. You can also make voluntary repayments.
Tax deductions for self-education
The basic test
The ATO allows you to deduct self-education expenses only if, at the time you incur them, they have a sufficient connection to your current employment. That means the study either:
- maintains or improves the specific skills or knowledge you need in your current job, or
- leads to, or is likely to lead to, an increase in income from your current job.
You cannot claim self-education expenses that:
- you incurred while not employed
- relate only in a general way to your job or profession
- will enable you to get new employment
- were reimbursed.
How it applies to an MBA
The ATO's examples show the line clearly. In one, a civil engineer's MBA as a whole is not sufficiently connected to his engineering job, so he cannot deduct the full course fees. But a project management subject within the MBA is connected to his work managing projects, so he can claim that subject.
In another example from the ATO's ruling, an assistant manager does an MBA with his manager's support. He can claim the subjects he paid for while employed, but not those paid for after he was made redundant, unless he starts a new job connected to the study.
The lesson: whether you can claim depends on your job at the time, and you may be able to claim some subjects even if you cannot claim the whole degree.
What you may be able to claim
If the connection test is met, eligible costs can include tuition fees you pay yourself (not through FEE-HELP), textbooks, stationery, internet and computer costs (apportioned for private use), travel to and from your place of study in some cases, and accommodation and meals if you must stay away overnight for study. The ATO lists the details and exclusions.
FEE-HELP and deductions
The ATO's guidance says tuition fees paid through FEE-HELP are not deductible, and neither are HELP repayments. If you pay fees up front yourself and meet the test, they may be deductible.
Keep records
Keep receipts and a record of how each expense connects to your job. Choose claim code K (maintains or improves skills) or I (likely to increase income) at question D4 of your tax return, as relevant.
Putting it together
- Check your available HELP balance on myGov.
- Confirm your course is approved for FEE-HELP and note census dates.
- Decide whether to pay up front or use FEE-HELP, considering tax.
- Ask your employer about support and any bond.
- Apply for scholarships well before deadlines. See our scholarships guide.
Frequently asked questions
Can I claim a tax deduction for fees paid with FEE-HELP?
The ATO's guidance says you cannot claim a deduction for tuition fees paid through FEE-HELP, or for repayments of a HELP debt. Check the ATO's self-education page and speak to a registered tax agent.
Does FEE-HELP charge interest?
HELP debts do not charge interest in the usual sense, but they are indexed each year. Check Study Assist and the ATO for current indexation rules.
Can I claim an MBA if I want to change careers?
Generally no. The ATO says self-education that will enable you to get new employment is not deductible. Individual subjects that are connected to your current job may still be deductible.
What if I lose my job during the MBA?
The ATO's ruling gives an example in which costs incurred while employed are deductible but costs incurred after redundancy are not, unless you start a new job connected to the study.
Sources and further reading
Facts on this page were checked against these primary and official sources. Conditions change — confirm before you travel or buy.
- Your borrowing limit — Study Assist, Australian Government
- FEE-HELP — Study Assist, Australian Government
- 2026 FEE-HELP information booklet — Department of Education
- Self-education expenses — Australian Taxation Office
- TR 2024/3 Income tax and fringe benefits tax – self-education expenses — Australian Taxation Office
- D4 Work-related self-education expenses 2026 — Australian Taxation Office
