Whether you’re working while pursuing further studies or starting university for the first time in 2025, it’s essential to plan ahead for your tax obligations for the 2024-25 financial year.

Scholarships

Scholarships can be classified as either exempt income or taxable income that must be reported on your tax return. A scholarship is considered exempt income if:

• It is not an excluded government payment (e.g., Austudy or Youth Allowance).
• You are a full-time student at a school, college, or university.
• You are not required to perform work as an employee or contractor now or in the future.
• The scholarship is primarily for educational purposes.

If your scholarship is exempt, you do not need to include it in your tax return, and the provider is not required to withhold tax from your payments.

Conversely, scholarship payments are taxable if:

• You are studying part-time.
• The scholarship has a condition requiring you to work for the provider now or in the future (regardless of whether it’s under a contract).
• The scholarship is not primarily for educational purposes.

If your scholarship is taxable, you must report the amount as assessable income on your tax return and inform the provider that it is assessable for tax purposes; the provider may need to withhold tax from your payments.

If you’re unsure whether your scholarship is taxable or tax-exempt, the ATO offers a scholarships decision tool on its website to assist you.

Self-Education Expenses

Self-education expenses arise when you study at an educational institution, take courses from professional or industry organizations, attend work-related conferences or seminars, or engage in self-paced learning and study tours. You may be eligible to claim a deduction for self-education expenses if your studies are closely related to your current work—specifically, if they help you maintain or enhance the skills and knowledge required for your job or are likely to lead to an increase in your income.

You cannot claim self-education expenses if:

• You are unemployed.
• The course of study is not sufficiently connected to your job.
• The course is intended to help you change professions.

To claim a deduction, you must keep receipts and detailed records of your expenses (e.g., course fees, textbooks, transport, accommodation, and depreciating assets) and be able to demonstrate how your course relates directly to your job. You can check your eligibility and estimate your self-education deduction on the ATO website.

Student Loans

The Government offers various loans to support your studies and further training. For instance, the Higher Education Loan Program (HELP) assists eligible students with their tuition fees at universities or other higher education providers, while the Australian Apprenticeship Support Loan (AASL) covers expenses for apprentices. Borrowing limits are set annually by the Government and depend on your field of study.

If you qualify for a student loan, the Government will pay your education provider directly. If you’re an apprentice and have taken a loan for trade tools and supplies, the payments will be made directly to you in monthly installments.

All Government student loans are repaid through the tax system once you start earning above a compulsory threshold. For the 2024-25 financial year, compulsory repayments commence once your income reaches $54,435—even if you are still studying or completing an apprenticeship. It’s advisable to inform your employer that you have a HELP loan so they can withhold the appropriate amount from your pay to cover your loan at tax time. You may also opt to make voluntary payments to reduce your balance.