Would work-related Uni fees paid by HELP be tax-deductible on a personal tax return?

[#1]

Would work-related Uni fees paid by HELP Loan be tax-deductible on a personal tax return?

Thanks. 

[#2 · Accepted solution]

@FloraY1 

No, only tuition fees opaid under FEE-HELP are.

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

Since your course is being subsidised by taxpayers, it’s not reasonable for you to also reduce your taxable income when you pay it back.

[#3]

Thanks for your reply.

I am not sure what is the difference between HELP Loan and FEE-HELP. I had thought they were the same. Actually, I would like to ask if the uni fees paid by FEE-HELP would be tax-deductible. As per your advice, they are YES for FEE-HELP. Is that correct?

Please also advise the difference between HELP Loan and FEE-HELP.

Thanks.

[#4]

Hi @FloraY1, 

@macfanboy is right. 

You can read about the differences in HELP loans on the StudyAssist site.

Basically, the difference between HECS-HELP and FEE-HELP is that HECS-HELP is specific to Commonwealth-Supported institutions (which is what @macfanboy implied by "subsidised by taxpayers", while FEE-HELP is available to other institutions that are not Commonwealth-Supported. FEE-HELP is sort of like a bank loan, whereas HECS-HELP is more like government assistance, if that helps make sense of it.

This is why you can't claim a deduction for HECS-HELP loan fees, but can claim a deduction for FEE-HELP loan fees - HECS-HELP is government-funded, but FEE-HELP is you-funded.

Check the link @macfanboy provided for more info on what you can and can't claim

[#5]

Dear Macfanboy,

That makes sense.

Much appreciated for your kind clarifications.

[#6]

Hi @TazH, 

Always welcome to jump in on a thread! We love to see the community get involved and have discussions

Yes, I'm referring to tuition that is deferred/added to a FEE-HELP loan, and yes, your understanding is correct. 

Your tuition fees payable under FEE-HELP and your other expenses such as... student union fees, student services and amenities fees, and course fees, can be claimed as a deduction, provided they meet the requirements for self-education deductions. 

Best of luck with your study! 

[#7]

Hi @BlakeATO ,

I came here to ask a similar question so I'm hoping it's ok to jump in seeking clarification.

When you say "but can claim a deduction for FEE-HELP loan fees", are you referring to tuition that is deferred/added to the loan, or some other kind of fee?

My understanding is that for post-graduate, my FEE-Help loan does not incur any fees, only the tuition amounts that I choose to defer. Can I claim tuition that I defer?

This is what I found at the link provided, so I'm hoping the bit I've turned red means that I can claim deferred fees.

Expenses you can claim

If you meet one of the eligibility requirements above, the following self-education expenses are allowable tax deductions:

• tuition fees, including fees payable under FEE-HELP, VET Student Loan (formerly known as VET FEE-HELP) (but doesn't include expenses paid under HECS-HELP),

Thank you

Taryn