Yes — if you’re carrying on a share trading business, and you’re enrolled in the CFA program to improve or maintain your trading and investment skills, then CFA-related expenses are generally tax-deductible under Section 8-1 of the Income Tax Assessment Act 1997.
✅ Why CFA Costs Are Deductible for Share Traders
The ATO allows self-education deductions when the study:
- Directly relates to your current income-earning activity, and
- Maintains or improves skills used in your current business.
As a share trader, your income is derived from actively buying and selling shares. The CFA teaches equity analysis, valuation, portfolio management, economics, etc. — directly relevant to your trading business.
📚 What CFA Costs You Can Deduct
If you are a sole trader or operating under a business structure:
| Expense | Deductible? | Notes |
|---|---|---|
| CFA exam registration fees | ✅ | Level I, II, III included |
| CFA Institute membership fees | ✅ | If related to active business |
| Study materials (books, courses, Schweser, etc.) | ✅ | Must relate to current business activity |
| Depreciation on laptop/monitor | ✅ | Apportioned if used for business and study |
| Internet, electricity (study portion) | ✅ | Partial deduction if working from home |
🚫 What You Can’t Deduct
| Expense | Not Deductible |
|---|---|
| Travel for personal reasons | ❌ |
| CFA if used to switch careers | ❌ |
| CFA expenses reimbursed by another party | ❌ |
| Non-related continuing education (e.g. real estate courses) | ❌ |
🧾 How to Claim
If you’re a sole trader, claim in your tax return (Business Schedule) under:
🔸 Other operating expenses or
🔸 Self-education expenses (if itemized separately)
Keep receipts, registration emails, invoices, and a logbook if you’re apportioning shared costs (e.g. internet, utilities, laptop use).
🔍 Backed by ATO Principles
ATO’s ruling on self-education and business expenses:
📄 TR 98/9 – Self-education expenses
“A deduction is allowable under section 8-1 of the ITAA 1997 where the expense is incurred in gaining or producing assessable income or in carrying on a business.”
✅ Summary
| Question | Answer |
|---|---|
| I trade shares as a business — is CFA deductible? | ✅ Yes, if it’s relevant to your business |
| Can I deduct all CFA levels? | ✅ Yes, assuming you’re already in business |
| What if I use a company structure? | ✅ Still deductible, as a business expense |
| Need to keep records? | ✅ Yes, invoices, notes, study logs, etc. |