Self Education / Fees for University of Melbourne Courses
Description
The University's 2003 Enterprise Bargaining Agreement allows for staff to salary package work-related self-education expenses. An employee may salary package the cost of Melbourne University supplied course fees.
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 Melbourne University supplied course fees are allowed to be packaged. Non Melbourne University 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 does not apply.
Substantiation Documentation
An employee must submit the original receipt and tax invoice for reimbursement of the purchase. The purchase must be in the name of the employee, specify the purchase item and that it is a Melbourne University supplied course.
The employee must declare that the course fees are primarily related to their Melbourne University employment.
Form of Payment
- The employee pays for the course fees.
- The financial benefit to the employee is a reduction in their fortnightly PAYG tax.
- The employee will receive the tax benefit over the period nominated. 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. Employees 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 available salary within the financial year. In cases such as these, you will be required to make claims within your tax return.
Package Cost
The cost of the course fees plus an administrative fee of $10 to cover the additional work required in the administration. The administration fee will be treated as salary sacrifice expense and deducted from the employee?s pre-tax pay in the first pay period.
Other Information
Contact the University's Superannuation Officer on 8344 7549.
How to Apply
Employees must complete the HR 32F Salary Packaging form and attach the reimbursement claim form with the original receipt. These should be sent to:
Salary Packaging Coordinator,
Human Resources,
3rd floor,
Raymond Priestly Building
Further enquiries can be made to the Salary Packaging Coordinator on extension 47795.
HR will process the forms, email confirmation of the processing and dates of when the reimbursement will take place.