Working while studying? You're not alone. Australian Bureau of Statistics data shows 81 per cent of Aussies aged 15-24 are fully engaged in work and study. If you're working and studying, you may be able to claim self-education expenses.
Check your eligibility
Whether you're taking classes through university, TAFE, college or other recognised institution, you can only claim self-education expenses if your studies have a solid, relevant connection to your current job. You also need to satisfy at least one of the Australian Tax Office's four basic conditions:
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- You're upgrading your qualifications for current employment.
- You're improving specific skills or knowledge you use in current employment.
- You're a trainee employee, and the course you are undertaking forms part of that traineeship.
- You can show at the time you were working and studying, your course led, or was likely to lead, to an increase in income.
Know what to claim
Once you know you can claim self-education expenses, it's helpful to know what those expenses are. The ATO covers this in detail on its website and includes things like textbooks, photocopying, student union fees, and depreciation on the value of a computer you use for studies. If you have a dedicated room at home for studying, you can also claim heating, cooling and utility costs for that room.
Don't forget HELP debt contributions
For the 2022 financial year, compulsory HELP loan repayments begin when your annual taxable income exceeds $47,014. If you have HELP debt and earn more than the threshold in a financial year, let your employer know so repayments can be taken directly from your pay. It's important to remember it's your responsibility to let your employer know so the appropriate amount can be taken out each pay period. Otherwise, you could have to pay additional tax when you lodge your return.
Count your side hustle
Don't forget to account for all your income. If you're working more than one job or are self-employed, you need to include everything in your tax return. Depending on your situation, you may also be able to claim work-related expenses if you earn income under an ABN.
Keep your receipts
When you're busy working, studying and living in the day-to-day, the lines can blur. Keeping accurate records and receipts for devices and what your expenses are means you can make the most of deductions, but you'll also be able to back anything up if needed.
