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Re: Tax Deductibility of Tuition Fees using Fee-HELP

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I am looking at commencing a Masters in July 2019.  Assuming my study relates sufficiently to my employment and will result in a promotion/pay increase I wanted to ask a question regarding the tax deductibility of tuition fees when using Fee-Help as I find different pages on ATO website confusing.

 

I have never used Fee-Help before so trying to understanding how it will work.

 

Am I correct in interpreting the tuition fees incurred during the financial year can be claimed as a deduction for self-education, even though I am using the Fee-Help system to pay for them?

 

Also, given that the tuition fees will be incurred in 2019/2020, will extra tax need to be taken out of my pay during the 2019/2020 year because of my Fee-Help loan, or will it be assessed when I do my 2019/2020 tax return and extra tax be deducted from then on.

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Taxicorn

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Yes, Fee-Help is deductible.

 

https://www.ato.gov.au/Individuals/Tax-Return/2018/Tax-return/Deduction-questions-D1-D10/D4-Work-rel...

 

Whether it needs to be deducted or not depends on your estimated income for the year.

By ticking Yes at "Do you have a Higher Education Loan Program (HELP), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt?" on the tax file number declaration form question 9 your employer will deduct the correct amount if it needs to be deducted.

 

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Best answer

Taxicorn

Replies 1

Yes, Fee-Help is deductible.

 

https://www.ato.gov.au/Individuals/Tax-Return/2018/Tax-return/Deduction-questions-D1-D10/D4-Work-rel...

 

Whether it needs to be deducted or not depends on your estimated income for the year.

By ticking Yes at "Do you have a Higher Education Loan Program (HELP), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt?" on the tax file number declaration form question 9 your employer will deduct the correct amount if it needs to be deducted.

 

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Community Support

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Hi @MegsB,

 

Welcome to our Community!

 

Further to the information @macfanboy has provided - you can find out how your repayment income is calculated on our website.

 

If you have further questions regarding your situation you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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