Tax Tips for Students and Graduates

Students and new graduates often face unique tax challenges. With proper planning and knowledge, you can maximise deductions and ensure compliance with the Australian Taxation Office (ATO). Here’s what you need to know:

Tax Considerations for Students and Graduates

HELP/HECS Repayments

• If your income exceeds the repayment threshold ($51,550 for 2023–24), a portion of your income will go toward repaying your HELP/HECS debt.

Education Expenses Deductions

• Claim work-related education expenses, such as course fees, textbooks, or travel costs, if they directly relate to your current job.

Tax-Free Threshold

• Ensure you claim the tax-free threshold on your primary source of income to minimise tax on part-time or casual jobs.

Important Tips for Students and Graduates

Keep Records

• Retain receipts for education-related expenses and records of your income to simplify tax filing.

Understand PAYG Withholding

• Check that your employer is withholding the correct amount of tax, particularly if you have multiple jobs.

Lodge Your Tax Return

• Even if your income is below the tax-free threshold, lodging a return ensures any withheld tax is refunded.

FAQs

Q: Do I need to lodge a tax return if I’m a student?

A: Yes, especially if you had tax withheld from your income. Lodging ensures you receive any refund you’re entitled to, even if your income is below the tax-free threshold.

Q: Can I claim expenses for a course I’m currently studying?

A: You can only claim deductions if the course directly relates to your current employment and helps you earn income.