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Tax Deduction Information

Tax Deduction Information

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/ Tax Deduction Information

There could be savings if you pay for your course before the end of this financial year.

If you are planning on studying to gain skills for your current job, your tuition fees could be tax deductible, meaning you may be entitled to a tax refund if you pay before the end of the financial year: 30th June 2017.

Some education expenses that may be tax deductible:

  • costs for your Open Colleges course fees
  • depreciation for laptops or computers
  • internet usage (excluding connection fees)
  • see the full list here.

Are you studying to gain skills for your current job?

Your course expenses may be deductible in the income year they are paid, if your course is no longer than 12 months. Pay in full before 30th June 2017 and you could make significant savings on your course fees.

Example:

A student enrols in a course before 30th June 2017 with fees of $4,500 and decides to pay upfront. By taking advantage of the 20% Pay In Full discount, their course fees become $3,600. If the student is paying a marginal tax rate of 32.5% (excluding Medicare levy), they could be eligible for a tax deduction of $1,170 – this represents a 46% saving on the original course fees.

  • Original full course fee: $4,500
  • Pay in full discount (20%): $900
  • Discounted course fee: $3,600
  • Potential tax deduction (@32.5%): $1,170
  • Net cost: $2,430
  • Total saving: $2,070 (so a 46% saving on the original full course fee)

If your Open Colleges course is longer than 12 months, this may mean your tax deduction could be claimed over 2 or more tax returns.

In many cases, you are required to cover the first $250 of your self-education expense yourself.

Quick checklist. You may be eligible if:

1. you (the student) are paying for your Open Colleges course fees

2. you can demonstrate that the expense relates to your current employment

3. you have reduced the deduction claim by the first $250

4. you have written records of payment or a copy of your tax invoice for your course.

Want to know more?

For further details and examples, go to this Self-education expenses calculator.

Enrol before 30th June 2017 to take advantage of these savings.

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Time is running out to take advantage of these savings!

For specific information on self-education expenses go to the Australian Taxation Office website.

General disclaimer

The information set out in the document is provided of a general nature only and must not be relied upon as a substitute for specific advice on these issues. Further advice specific to the circumstances should be sought before taking any action, or refraining to take action, in relation to any of the issues contained in this document.

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