Self-Education Claims for Working Holiday Makers

1. Self-Education Claims for Working Holiday Makers Posted on 23 February 2019 As a working holiday maker, you enjoy the opportunity not only to immerse in Aussie culture, but also the chance to advance your learning through workplace training and self-education. The best part? You may lodge claims on your tax returns. Guidelines for Work-Related Self-EducationExpenses and Claims The courses you take must be related to your current employment, and your current work activities, in order for you to lodge claims and deductions on self-education expenses. This means that if you’re employed as an IT specialist in Adelaide for the next four months, you may claim for tax deductions if you are taking a short course in programming, software or hardware administration, and the like. And while the ATO does not list any specific course, the one you are intending to take must meet the following criteria: The course must be directly related to your current work activities, and leads to formal qualification (with the accompanying certificates, etc.); The course must be undertaken in order to maintain or improve the skills or knowledge you require in your current work activities;

2. The course taken may be considered a prerequisite or, likely result in,a promotion or an increase in your income. On the other hand, you may not file a claim for self-education expensedeductions if your course isn’t related to your current employment. Nor may you claim for taking a course with the intent of moving to new employment. Your Visa Status + Self-Education To maintain your visa status as a working holiday maker, your self-education courses must only run for a maximum of four (4) months out of your 12-month stay period. Otherwise, you may have to change to a student visa status (for courses lasting six months and up). There’s also a taxable bonded scholarship (which can last for a number of years). So it’s best to consider whether you’d like to keep your working holiday maker status, or pursue a lengthier training course and change your visa status (see below for Taxable Bonded Scholarships). Lodging for Your Self-Education Claims and Deductions The self-education expenses you can claim for may include but not limited to: Course fees, textbooks, and trade, professional, or academic journals Student union fees, student services, and amenities fees Travel fare to-and-from your place of education, and/or parking fees (only for work-related claims); or accommodation and meals (if away from home) And others If an expense you want to claim is not wholly for your self-education, you can only claim the amount that relates to your self-education as a deduction. Taxable Bonded Scholarships: A Self-Education Alternative A Taxable Bonded Scholarship isa training or higher education option that you can apply for. If accepted, you will be required to serve a bond (hence the name) which will oblige you to workfor one particular company, for a given period. To claim a self-education deduction, you will need to show that you have a satisfactory grade and are fulfilling the requirements for the course. If the provider of the bonded scholarship is your employer, the guidelines for lodging work-related self-education claims apply. Self-education is one of the many benefits to traveling as a working holiday maker. And we’re here to help you get the most out of your travels. If you’d like to know more about your self-education claims and deductions, let us know. Pinkcow may have the answers to your questions—and more. Claim Your Tax Back Now!