Can I claim a tax deduction for my course? What about GST?
- Most TAFE NSW courses are nationally accredited and are therefore GST-free.
- Courses that are not nationally accredited, but are likely to add to your employment skills, will be GST-free.
- Course materials that you must purchase from TAFE NSW to undertake your course are GST-free.
- The GST status of a course can be confirmed by your local campus or by phoning 1300 628233.
If you undertake a course to gain qualificiation for use in carrying out a profession, business or trade in the course of employment, you may be entitled to claim a tax deduction. At the time you undertake your course there must be a direct connection between the nature of your course and current work activities. The course should either enable you to maintain or improve your skills or knowledge, or lead to increased income.
You will not be entitiled to claim a tax deduction for your course fees where you undertake a course to gain new employment or to open up a new business or income earning activity within an occupation or field of employment in which you are not currently working. You cannot clain self-education expenses against income you receive from Youth Allowance, Austudy payments, ABSTUDY payments, Assistance for Isolated Children, Veteran's Children Education Scheme or similar schemes.
If your employer pays for, or reimburses you, for your course fees, you cannot claim a tax deduction. This expense may lead to a fringe benefit tax liability for your employer and a reportable fringe benefit or your payment summary.
The entitlement to a tax deduction for the TAFE NSW fee will depend upon your individual circumstances. For further information contact the Australian Taxation Office (ATO) or your tax agent.
Taxation and education expenses
The Australian Tax Office is reminding working students they may be eligible to claim a tax deduction for their education expenses. Use the links provided by the Tax Office below to find out if you qualify and the self-education expenses you may claim.
Study and claim - introduction briefly explains the basics you need to know about to claim work-related self-education expenses.
The Self-education eligibility tool will help you work out if you are eligible to claim a deduction for work-related self-education expenses on your tax return.
If you are eligible, the Self-education expenses calculator will give you an estimate of the amount of work-related self-education expenses you can claim on your tax return.
Detailed explanations about eligibility and claiming education expenses can also be found in the fact sheet Claiming self-education expenses – specific expenses
Lodging your tax return
The Australian Taxation Office advises one of the best ways to lodge your return is by using e-tax, the official Tax Office online preparation and lodgment software. It’s free, secure and user friendly with most refunds being issued in 14 days or less.
Visit www.ato.gov.au/etax to find out more about e-tax or view the online demonstration.
For further information about your self-education expenses, visit www.ato.gov.au/studyandclaim