Tax deductions learners can claim this EOFY

Tuesday, June 30, 2020

End of financial year is upon us and if you’re studying a course in early childhood education, there are many study-related expenses you should keep in mind when it comes time to claim.

Whether you’re studying online or even working from home as well, it’s important to know what deductions you’re eligible for. The COVID-19 pandemic has resulted in a few changes, as more people study and work from home.

Understanding this new information from the Australian Tax Office (ATO) can save you money, so make sure you know what tax deductions are available for your situation this tax time.

Claiming tax deductions

Students and claiming deductions

The Australian Tax Office makes it clear that you can claim many self-education deductions when you’re a student, as long as the course you are studying:

  • Improves the skills and knowledge required for your current employment
  • Is likely to result in an increase in your income from your current employment (For example, a promotion or pay rise).

Note: Students who apply before June 30 could claim this financial year. Of course, some of your study-related expenses will be able to be claimed at this EOFY, while others may pop up in the 2020/21 financial year to follow.

Know what you can claim as a student

Gaining qualifications or upskilling to take your current early childhood education career to the next level is an investment in your future. As part of your training journey you are likely to incur a few study-related expenses along the way. Hopefully you have been tracking your expenses and keeping receipts (if you didn’t this year, make sure you get a system in place to save yourself money in the next financial year).

Expenses that are directly related to your study that you might be able to claim as tax deductions include:

  • Your course fees (only if you paid them yourself)
  • Textbooks
  • Phone calls
  • Internet connection and usage (if you’re studying online)
  • Stationery such as planner, highlighters, notebooks and pens
  • Computer consumables including printer cartridges
  • Trade, professional or academic journals

COVID-19 changes to work tax deductions

As a result of the pandemic, work circumstances have changed for many. This means for those now working from home, there are numerous deductions available to claim.

If you’re usually working from an office or elsewhere then working from home may have resulted in some additional costs. Being at home more means using heating, lighting and even furniture more, and these things can add up.

The Australian Tax Office understands that tracking work from home-related expenses can be tricky, so they have introduced a ‘shortcut method’ from 1 March until 30 June, 2020. This means employees working from home can claim 80 cents per hour for each hour you work from home during the period 1 March to 30 June 2020. These expenses may include:

  • internet expenses
  • phone expenses
  • the decline in value of equipment and furniture
  • electricity and gas for heating, cooling and lighting

Already working from home in some capacity prior to 1 March? If so, you will need to use one of the existing methods to calculate your deduction for the period 1 July 2019 to 29 February 2020.

If you’re not 100% sure about what you’re eligible for and what tax deductions you can claim in the 2019/2020 tax year, speak with a tax professional. They can advise you on what you can claim based on your individual circumstances which can mean money back in your pocket!

The information above is general information only and does not constitute professional advice. Get in touch with the ATO or a tax professional to learn more about how this information applies to your individual circumstances.


If you would like to start studying or up-skill within an early childhood education course in the new financial year, reach out to us for more information about how to get started.


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