Tax tips for university employees

While explaining the intricacies of quantum mechanics or engaging in deep socio-political debate might be part of a normal day in an Australian university, most of us are still uncomfortable when it comes to preparing a tax return. Now is the perfect time to start thinking about the expenses you might be able to claim.

Information contained in this article is of a general nature only and should not be taken as taxation advice. Please consult with a registered tax advisor before making any decisions. This article was originally published in July 2019 and updated in June 2022.

We’ve spoken to the Australian Taxation Office (ATO) about specific expenses you may be able to claim as a dean, professor, lecturer or tutorial teacher.

When it comes to working out whether an expense is tax deductible, there are three things you need to consider.

1. Have you spent the money yourself and haven’t been reimbursed?
2. Is the expense directly related to earning your income?
3. Do you have a record to prove the expense (usually a receipt)?

If you answer “yes” to all of these questions, the expense may be tax deductible.

Keep in mind that if the expense was for both work and private purposes, you can only claim a deduction on the work-related portion.

As a university employee, here are some of the costs that you might be able to claim:

Conferences

You can claim the cost of attending seminars, conferences or education workshops that are sufficiently connected to your work activities. This can include formal education courses provided by professional associations. If attendance of a work-related conference involves travel, either domestic or international, you will need to exclude any private portion of your trip when calculating your tax deduction. 

Research expenses

You may be able to claim a deduction for research expenses you incur related to an activity for which you earn income.

Working from home

Your role may involve a lot of preparation for classes and lectures, which often take place at home. If you spend time working from home, you may be able to claim a deduction for expenses you incur relating to that work. These can be additional running expenses such as electricity, the decline in value of equipment or furniture and phone and internet expenses. 

The ATO have working from home methods you can use to work out your deduction. The method you can use will depend on your circumstances. You must meet the record keeping requirements and working criteria to use each method.

There are a number of methods you can use to work out your home office expenses, including: the shortcut method, the actual cost method or the fixed rate method. The temporary shortcut method ceased from 1 July 2022. You can still use this method to calculate your working from home deduction for your 2021-22 tax return. 

For more information regarding the working from home methods, check out Working from home expenses.

Books, journals and professional library

You may be able to claim a deduction for the cost of any work-related publications you purchase, including technical journals and reference books. You will need to consider the cost of the publication, and whether the publication is part of a set which may need to be depreciated over the life of the item. You can also claim the depreciation of your professional library, which can include books and DVDs with a reasonably long shelf-life. 

Clothing and laundry

With a few exceptions, clothing is a private expense. Conventional clothing – such as normal black pants, with a button-down shirt or suit – are considered a private expense and are therefore not applicable for a deduction, even if your employer requires you to wear those items and even if you only wear them for work.

You can claim a deduction for costs you incur to buy, hire, repair or replace clothing, uniforms and footwear you wear at work if it’s:

• protective clothing you wear to protect yourself from specific risks of injury or illness at work. For example, protective eyewear and gloves worn by a chemistry lecturer.
• a compulsory uniform which must be sufficiently distinctive to your particular organisation so that a casual observer can clearly identify you as working for a particular employer, or identify the products or services provided by your employer. To be considered compulsory, you must be expressly required to wear it by a workplace agreement or policy, which is strictly and consistently enforced.
• a non-compulsory uniform that your employer registers on the Register of Approved Occupational Clothing with AusIndustry (check with your employer if you’re not sure).

You can't claim a deduction if your employer buys, repairs or replaces your clothing, or reimburses you for clothing expenses you incur.

For more information about clothing you can claim, see Clothing, laundry and dry-cleaning expenses.

General expenses

Some other expenses that you might be able to claim include: union fees, professional memberships and work-related subscriptions, books, magazines and journals. Gifts and donations to registered charities may also be able to be claimed, as long as you haven’t received anything in return for your donation, such as raffle tickets or novelty items. But remember, the donation must be made to a deductible gift recipient.

You might also be able to claim bank fees charged on any investments, as well as the cost of income protection or sickness and accident insurance premiums (excluding policies taken out through your superannuation where the premiums are deducted from your contributions), and any fees paid to your tax agent for preparing your return.

To help ease the stress of tax time, contact your tax agent or visit the ATO’s tailored guide for education professionals if you need more clarity around what is deductible. Always keep a thorough record of your paperwork to help make submitting your tax return a seamless process, and remember, the records you keep don’t have to be paper-based; electronic receipts or photos of your receipts are also acceptable. 

Keeping track of these electronic records has been made much easier in recent years, with the introduction of the myDeductions tool in the ATO app. MyDeductions tool is a record-keeping tool you can use to keep track of your records digitally. You can download the app for free now from your app store.