Student Tax Deductions Australia

Student tax deductions: the key idea

Students sometimes assume that anything they buy for university or study can be claimed on tax. That is not generally the case. A deduction usually needs to satisfy the relevant Australian tax rules and, for work-related expenses, have a sufficient connection with earning assessable income.

Work-related expenses

If you work while studying, you may have expenses connected with earning your employment income. Examples can include certain work-related tools, equipment or other costs where the legal requirements are met. Private expenses and ordinary living costs generally cannot be claimed simply because you are employed.

Study expenses require care

Education expenses can have specific rules. Whether a course, textbook, software subscription or other study cost is deductible can depend on the relationship between the study and your current employment or income-producing activities. Keep evidence and check the current rules rather than relying on a generic student checklist.

Records and receipts

Good records make tax time easier. Keep receipts, invoices, statements and other evidence that explains what you paid, when you paid it and why the expense relates to your income-producing activity. Digital copies can be useful where they meet the record-keeping requirements.

What not to claim

Do not claim an expense merely because another student claimed it. Private rent, ordinary food, personal clothing and other private costs generally need to be treated differently from genuine deductible expenses. If you are unsure, ask before lodging.