Tax Deductions for Uni Students

There can often be great tax deductions for uni students during their study. Here we discuss what uni student tax deductions you may be able to claim. We also discuss those expenses you are not allowed to claim.

Important Note: In general only taxpayers who are employed full time and who also study will be eligible to claim uni student tax deductions.

Self-education expenses can be great tax deductions for uni students who are already working in their field of study.

To legally claim tax deductions for uni students on your return, you must first ensure you meet one of the four eligibility criteria set by the ATO:

1. You are improving your qualifications for your current role.
2. You are improving your knowledge or skills for your current role.
3. You are a trainee and yourself-education course is part of the traineeship.
4. You can show that your course, qualification or degree can lead to an increase in income from your current employment.

   The ATO won’t allow tax deductions if the course you are taking does not relate to your current employment.

   In addition, any expense involved with studying for a potential role in the future, or to get a new job entirely, are not eligible for a tax deduction.

Tax Deductions Uni Students can claim

If you meet one of the above mentioned eligibility criteria then there are a range of possible uni student tax deductions you might be entitled to claim if you incurred them during the tax year (and you kept receipts/evidence to support your claims).

Common tax deductions include:

• Course/tuition fees (Not including HECS/HELP)
• Stationery and textbooks
• Student service fees
• Union fees
• Amenity fees
• Equipment depreciation and repairs (laptops computers, desks etc.)
• Car expenses (if applicable)

The first $250 of your claim is usually non-deductible.

Unless your claim includes depreciation or repairs, the ATO rules state that the first $250 worth of uni student tax deductions cannot be claimed on your tax return.

This means if your expenses for the year consist of only fees, textbooks, stationery and travel you need to deduct $250 from your total before adding it to your tax return.

You’ll need to keep receipts and documents

In order to claim a uni student tax deduction, proof of purchase is required. This can be done through electronic receipts, invoices and documents.

Tax Deductions For Uni Students: What you can’t claim…

As we mentioned, in general only uni students who also work full time will qualify to claim uni student tax deductions on their tax returns.

On top of this, other expenses you can’t claim as a uni student tax deduction are:

• HECS-HELP Repayments
• Occupancy Expenses (e.g Rent, house insurance, rates, mortgage interest etc.)
• Financial Supplement Loan Repayments

To avoid potential ATO fines or penalties down the track, it’s important to ensure any uni student tax deductions you claim on your tax return comply with ATO regulations. If you’re not sure whether you qualify to claim uni student tax deductions or which expenses are claimable, get in touch with us.