Education
Can I claim my Self Education costs?
There needs to be the necessary nexus (connection) to your current income for these expenses to be claimable. This means that the self education needs to help you in your current job and not be undertaken to open up new job opportunities.
Example 1: Amanda is a pharmacy sales assistant who is studying for a pharmacy degree so that she can become a pharmacist. The expenses related to the study are not allowable as the study is designed to open up a new income-earning activity.
Example 2: Barry, a trainee accountant, is studying commerce part-time at university. He is allowed a deduction for the costs associated with the course because it will enable Barry to maintain or increase the specific knowledge required in his current position and to carry out his duties more effectively.
Are my education expenses claimable against AUSTUDY?
The tax office has ruled that deductions for education expenses are not deductible against AUSTUDY income. However, after the recent Anstis case a deduction was allowed for education expenses for the 2007, 2008, 2009 and 2010 years. In the 2011 year education expenses will again be allowed for those in receipt of a full time government payment that allows them to study. All expenses will have to be fully substantiated.
In the 2011 Budget, the Government announced its intention to change the law to prevent deductions being claimed against all government assistance payments from 1 July 2011. This includes claims for study expenses by those who receive Youth allowance, Austudy and ABSTUDY. At this time, the legislation has not been introduced into Parliament.
I have a HECS-HELP debt and have been thinking about making some extra payments to pay it off quicker. Will I get any benefit for doing this?
If you make an advance payment of at least $500, or enough to clear the debt entirely, you will receive a 10% discount on that payment. It is a good idea to make the payment before 1 June when the annual indexation is calculated. The rate for 2011 is 3.0%. You should be aware that if your HELP repayment income is above $44,912 and you still have an outstanding HELP balance you may also be required to make a compulsory payment when you lodge your 2011 tax return.
In the 2010–11 Federal Budget the government announced that, from 1 January 2012 they will be reducing the bonus on voluntary payments of $500 or more from 10% to 5%. The discount available to students who elect to pay their contributions up front will also be reduced – from the current 20% to 10%.
I am an early childhood education teacher with a HECS-HELP debt and have heard that I can get some assistance to reduce that debt. What do I have to do?
A new benefit is available from the 2009 income year onwards which will reduce the compulsory HELP repayment or accumulated HELP debt for eligible graduates in science, maths or early childhood education. The benefit is designed to encourage maths and science graduates to work in specified occupations and early childhood teachers to work in specified locations. The benefit must be applied for each year and forms are available from the tax office or can be downloaded from www.ato.gov.au Details of the qualifying occupations and locations can be found at www.goingtouni.gov.au
Can I claim the costs of seminars?
The costs associated with seminars are tax deductible provided that they relate to your current income producing activities.
