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catcatcpw(Newbie)Newbie
11 Oct 2023

Hi,


I would like to know whether Uni Tuition Fees could be a deduction in income tax (for the relevant Financial Year)?


I have seen some related posts and information on the website (https://community.ato.gov.au/s/question/a0J9s000000TS5o/p00246539, https://community.ato.gov.au/s/question/a0J9s0000001Jiv/p00052119), but the answer was not clear to me.


The program that I studied was directly relevant to my jobs (can even say it's the direct and only reason that I got my part-time work, and the later full-time work!). I have always thought i could claim deduction for tax for the last financial year when I was still studying.


However, I received the ATO sms that there's an issue in my return and had to call the Audit team. The lady asked whether I was on a student visa for the programme (which the answer was yes) and whether this was the first course I studied (I answered yes, but now also wonder whether this is what she meant to ask - it was a two year programme, so it's the same programme but for different courses each semester).


The lady said it is not tax-deductible since studying was a visa condition, and suggested that she remove this from my return, and I could submit an amendment if I want after the revised return was first processed.


I did not question the validity of that being non-tax-deductible since I do not have any knowledge of it, but after some research, it seems that tuition could actually be used as work-related expense disregarding whether the education was a vision condition.


Greatly appreciate any help! Not a huge amount of money from the difference, but this make a big difference for me since I just got started. Thanks :)

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1,396 views
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ALSaccountants(Newbie)Registered Tax Professional
16 Nov 2023

ATO requires the INTENTION TO STUDY was WHILE WORKING in their fields to improve their skills/knowledge or increase their salary etc in their current work.


So there’s NO CONNECT as you had NO WORK, NO EMPLOYMENT ACTIVITIES and NOT EMPLOYED when you intended to enrol and started your studies (incurred tuition expenses). 


https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/deductions-you-can-claim/education-training-and-seminars/self-education-expenses/


When you can't claim a deduction

You can't claim a deduction for a self-education expense if, at the time you incur the expenses:

  • it doesn't have a sufficient connection to your employment activities at that time
  • you are not employed

ALSaccountants(Newbie)Registered Tax Professional
16 Nov 2023

Student visa holders’ INTENTION TO STUDY (ie cookery) was PRIOR TO GAINING WORKING RIGHTS in Australia. They could NOT WORK (ie hospitality), NO EMPLOYMENT ACTIVITIES and NOT EMPLOYED (excludes illegal work if onshore) in Australia when they intended to enrol and study (incurred tuition expenses) as they need their student visa approved first before they could work in any industry.


Therefore, without their student visa approved, they can’t work and can’t live in Australia. So there’s NO CONNECT as their studies (student visa) came first before they could gain working rights and work in any industry in Australia.


https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/deductions-you-can-claim/education-training-and-seminars/self-education-expenses/


When you can't claim a deduction

You can't claim a deduction for a self-education expense if, at the time you incur the expenses:

  • it doesn't have a sufficient connection to your employment activities at that time
  • you are not employed

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