Employment + University Course + Revenue Law? (1 Viewer)

[Skittled]

Hey all..

So, I'm hoping that I'll be able to answer my own question once I do revenue law (in like, a year's time), but seeing I can't at the moment, I'll ask it here on the off chance someone has an accountant close to their heart and might be able to ask.

You can claim tax deductions on university expenses if you're going to uni BECAUSE of a job you have ie university degree is fundamental to your job. Now, I'm a business student. What's to stop me starting my own business, and sending myself to uni on the grounds that I'm looking to get my own business started?

Or, conversely, get my dad's small business to employ me (despite very, very erratic sales) and send me to uni on the similar argument that I'll get it going and running better as I learn/once I've finished?

...any ideas? Even general musings? I'd love to get all that tax back from my lovely $150+ books...

 

[redruM]

yeh i cannot wait to do revenue law....next yr.

 

[townie]

i dunno about that ethically, or legally, but as i understand it, a tax deduction allows u 2 reduce ur taxable income, thus making u pay less tax. so unless ur making enough to pay tax, it's a pointless exercise, and u'd still only get a max of 47 c in the dollar back. correct me if ima wrong

 

[Skittled]

i dunno about that ethically, or legally, but as i understand it, a tax deduction allows u 2 reduce ur taxable income, thus making u pay less tax. so unless ur making enough to pay tax, it's a pointless exercise, and u'd still only get a max of 47 c in the dollar back. correct me if ima wrong

Correct. A tax deduction allows you to claim certain costs, and deduct it from your taxable income. So, if I earnt $8000, and had $200 in tax deductions, the govt would only tax me on $7800 (and then, only on $1800 because of a $6000 tax-free threshhold).

So, the idea would be to reduce my taxable income by the costs associated with uni (can't claim HECs, so it'd be books, fees, etc) and therefore have to pay that much less tax. I'd be happy with an effective ~20%+ discount on uni things; wouldn't you?

 

[Skittled]

http://www.ato.gov.au/individuals/content.asp?doc=/content/18843.htm&page=3&H3

have you seen this???

check out the nav bar on the right hand side for more info

Woah. Right. Ta dude - I looked this idea up ages ago but must've missed the specifics the right hand nav bar linked to... Gives me a bit of direction! Repped.