HECS and Student Tax

 Australia Wide Tax Solutions can take care of all your student tax needs without breaking the bank!  Let’s take a look at some of the tax implications for students in Australia.

 Supporting yourself while at uni?

A part time job while you are at university is taxed in the same way as a normal job.  The more money you make the more your deductions will work for you.  Gaining experience in your field of study will also help your career goals down the track.

Tax considerations for students

Books and all Uni and study expenses are tax deductible.  Any additional study while you are at university is not tax deductable.

If you go to conferences or seminars, or skills-based refresher courses in your area of study (including CPD – Continuing Professional Development) this is tax deductable.

Student loans

Students loans are given to people who are on Centrelink to meet your everyday needs, this is also paid back in the same way as HECS in that there is no interest charged other than CPI.  We can help you manange your HECS debt and student loans to make sure you’re maximising your tax benefits and other allowances.

How does HECS work?

If you don’t have the money to pay for your degree you will be eligible for a loan from the government, this is called HECS.

It increases by CPI there is no interest, you only need to pay back your HECS debt when you earn over $52,000.

If you have a job that is in the same field as your studies it is better to pay the debt rather than use HECS because it’s tax deductible.

How and AWTS help students including student discount

AWTS offers a discount for students of 50% off everything, with a valid student card.

Do you need to have your employer know you have a HECS debt?

Yes. If you earn over $52,000 you need to let your employer know that you have a HECS debt, so as your tax is covering the amount of repayments made to the debt, either way, the ATO will ensure that you pay your HECS everytime you lodge your tax return.

Does HECS affect my ability to borrow money from the bank?

HECS is like any other other loan, it will contribute to your borrowing capacity, just as credit cards and car loans do, so will HECS, so if you are planning to take out a loan ensure you pay it down, before you apply for  new loan.