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Re: HELP loan versus upfront uni payment

I'm new

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I am about to start part-time university study. I've signed up for a HECS-HELP loan. I was wondering if I chose to instead make a voluntary payment up front, could I claim it as a self-education expense? I know repayments of HELP loans can't be deducted, but I'm wondering if it still counts if I pay it upfront first. My study is work related and would improve the knowledge I require in my current employment. 

Thanks for your help! 

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ATO Certified Response

Devotee

Replies 0

Hi @Strantic,

 

Thanks for getting in touch! As @macfanboy posted, Higher Education Loan Program (HELP) repayments aren't considered deductible expenses, even where you believe these costs fall under the self-education deductions rules, or when you make voluntary repayments.

 

You need to meet certain criteria to be eligible to claim self-education expenses, including:

  • your course must have a sufficient connection to your current employment

  • you must maintain or improve the specific skills or knowledge you require in your current employment, or
  • your course will result in, or is likely to result in, an increase in your income from your current employment.

Our Self-education expenses calculator will help you work out if you are eligible to claim  tax deductions for work-related self-education expenses.

 

Hope that helps!

2 REPLIES 2

Taxicorn

Replies 0

 

 

No you cannot claim contributions you, or the Australian Government, make under HECS-HELP or repayments you make under the Higher Education Loan Program (HELP), the Student Financial Supplement Scheme (SFSS), the Student Startup Loan (SSL) or the Trade Support Loans Program (TSL) as a self-education expense.

Most helpful response

ATO Certified Response

Devotee

Replies 0

Hi @Strantic,

 

Thanks for getting in touch! As @macfanboy posted, Higher Education Loan Program (HELP) repayments aren't considered deductible expenses, even where you believe these costs fall under the self-education deductions rules, or when you make voluntary repayments.

 

You need to meet certain criteria to be eligible to claim self-education expenses, including:

  • your course must have a sufficient connection to your current employment

  • you must maintain or improve the specific skills or knowledge you require in your current employment, or
  • your course will result in, or is likely to result in, an increase in your income from your current employment.

Our Self-education expenses calculator will help you work out if you are eligible to claim  tax deductions for work-related self-education expenses.

 

Hope that helps!