Tax deductions for Uni Students

Are you studying to improve your current job or field of employment? If so, you may be eligible to claim a variety of self-education expenses that are tax deductible.

This blog sets out the conditions in which you may be eligible to claim certain deductions, and what type of self-education deductions are possible to claim. Types of expenses that you are not allowed to claim will also be discussed.

First of all, it must be noted that you must be actually earning an income and have paid tax to the ATO for it to be necessary to lodge a tax return and consequently claim any deductions.

Secondly, in order to legally claim deductions on your tax return as a uni student, you must ensure that you meet one of the following criteria:

• You are improving your qualifications for your current role/job

OR

• You are improving your knowledge or skills for your current role/job

OR

• You are a trainee and your self-education course is part of the traineeship

OR

• You can prove that your course, qualification or degree will lead to an increase in income from your current employment.

Put simply, if your course has NO relation to your CURRENT employment, you cannot claim any self-education expense deductions.

In the case where you have met one of the four criteria detailed above, then you are eligible to claim a variety of self-education deductions – if you incurred any expenses during the relevant tax year, and you have proof of purchase.

Possible tax deductions for uni students include:

• Student union and course fees
• Student service and amenity fees
• Textbooks, stationary, photocopying expenses
• Home office expenses, software, internet access
• Depreciation and repairs of equipment (e.g. laptops, desktop computers, printers etc.)
• Car expenses (if applicable)

What you can’t claim as a uni student:

• HECS/HELP Repayments
• Occupancy/Rental Expenses
• Financial Supplement Loan Repayments

To find out more about whether you are eligible to claim self-education expenses, check out this handy self-education eligibility tool provided by the ATO.

If you should find you have any further queries regarding self-education tax deductions, please don’t hesitate to contact Optima Partners at 6267 2200 for further assistance.

Sarah Koios

Accountant