Self Education / Fees for University of Melbourne Courses
Eligible staff may salary package work-related self-education expenses.
For further information in relation to Salary Packaging Courses Fees, please refer to Staff Development, Education and Training Procedure (MPF1149)—University fee discount scheme.
What is allowable?
- The ATO considers self education expenses to be deductible where they have a relevant connection to the current income-earning activities.
- Self education unrelated to your current employment/income earning activities is not allowable.
- Only the University of Melbourne supplied course fees are allowed to be packaged. Non University of Melbourne courses are not allowable. This includes courses from closely affiliated areas such as the Melbourne Business School.
- Ancillary costs may not be packaged; these must be claimed in your tax return.
- Fees that have had payment deferred through HECS/PELS may not be claimed.
Taxation issues / status
Fringe Benefits Tax will be exempt if there is a connection between the course and the current income earning activities.
An employee must submit the original receipt and tax invoice for reimbursement of the purchase. The course name must be in the name of the employee, specify the subject(s) and that it is a University of Melbourne supplied course.
The employee must declare that the course fees are primarily related to their University of Melbourne employment.
Form of Payment
- The employee must pay for the course fees up front.
- The financial benefit is a reduction in your fortnightly PAYG withholding tax.
- The staff member will receive the tax benefit over the nominated period which is limited to a semester. This nominated period is limited to the semester that the fees are incurred. Therefore subsequent course fees are packaged separately within the following semester. This will commence on the next available pay period following receipt of the form.
- The packaging of course fees is limited to the financial year in which they are incurred. Staff must ensure that there are an adequate number of pay periods (and salary) from the time packaging begins until the end of financial year. Requests will not be processed (partially or otherwise) if course fees are greater than the salary available within the financial year.
There is an administrative fee of $10 which is deducted as a pre-tax deduction at the time the benefit is packaged.
Contact your local HR representative.
How to Apply
Complete the HR 32F—Salary Packaging form (.doc) and attach the original receipt(s), and forward to HR Specialist Services, Raymond Priestley Building.