Starting out in your career or balancing study with work can feel overwhelming — but it’s also the perfect time to build strong financial habits and make the most of every tax opportunity. The good news? There are plenty of deductions, contributions, and strategies for students and young professionals designed to boost your savings, reduce your tax bill, and set you up for long-term success.
Here’s what every student and young professional should know.
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Claim Work-Related Expenses (Legally!)
Even if your budget is tight, small expenses can add up. If the costs are directly related to earning your income, you may be able to claim them as tax deductions. These can include:
- Uniforms or protective clothing required for your job (think lab coats, safety shoes, or branded work shirts)
- Tools, laptops, or software you need to perform your role
- Home office expenses if you’ve been studying or working from home, including electricity, internet, and stationery
Hack: Keep your receipts and log expenses as you go. Apps, spreadsheets, or cloud storage make it easy to stay organised and ensure you claim every legitimate deduction. Even minor purchases like printer ink or stationery can add up over the year.
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Study-Related Deductions
If your course is directly linked to your current employment, some education costs may qualify as tax deductions. This can include:
- Course fees and textbooks
- Stationery or equipment required for study
- Travel expenses for attending classes or workshops (if it’s relevant to your job)
Hack: Before claiming, check that your course has a clear connection to your current income. Courses for general interest or unrelated career development are not deductible. Similarly course fees for government sponsored places (i.e. courses you can use HECS towards) are not deductible and undergraduate courses rarely meet the work related requirements. Keeping detailed notes on how your study enhances your current work will make it easier to justify your claim if the ATO asks.
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Boost Your Super Early
The earlier you start contributing to your super, the more powerful the compounding effect can be. Even small contributions today can grow significantly over decades. If you’re a low-income earner, you may also be eligible for the Government Super Co-Contribution, which can top up your super by up to $500 when you make personal contributions.
Hack: Consider setting up automatic contributions from your salary or casual earnings. It’s a simple way to build wealth for retirement without thinking about it every week. The bonus? Concessional contributions reduce your taxable income, meaning you could pay less tax now.
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Keep Track of Your Student Loans
If you have a HECS/HELP loan, repayments kick in automatically once your income reaches the repayment threshold. Staying aware of your balance and repayment obligations helps you budget better and avoid surprises at tax time.
Hack: Ensure you’ve correctly informed your employer of your loan. Use the ATO online services to monitor your loan balance. If you’re earning extra through casual or freelance work, voluntary repayments can reduce your debt faster and save interest in the long run. Planning ahead also prevents sudden repayment spikes that could affect your cash flow.
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Explore Other Tax Offsets and Benefits
Even as a student or early-career professional, you might be eligible for:
- Low-income tax offset (LITO) to reduce tax liability for those on smaller incomes
- Private health insurance rebates (if applicable)
- Work-related vehicle expenses if you use your car for business purposes (keeping detailed logs is essential)
Hack: Check your eligibility for government benefits early in the financial year. Some offsets and rebates may require documentation, so staying organised is key.
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Record-Keeping is Key
At every stage of life, the best tax outcomes come from staying organised. Make it a habit to:
- Keep receipts for work-related and study-related expenses
- Track contributions to your super
- Note any government benefits received
Hack: Even a simple spreadsheet or accounting app can make a huge difference when tax time rolls around. The ATO is less forgiving if deductions aren’t properly documented. Consider setting aside a folder or digital file specifically for tax-related records.
The Bottom Line
Starting your career or juggling study with work is the perfect time to develop tax-smart habits. By claiming what you’re entitled to, boosting your super, exploring offsets, and keeping excellent records, you can reduce your tax, grow your savings, and set yourself up for a financially secure future.
At Lemonade Beach Accounting, we help young Australians navigate the tax system with confidence, maximise deductions, and plan for long-term wealth.
Ready to Start Your Tax-Smart Journey?
Book a Tax Planning Appointment with Lemonade Beach today — we’ll help you unlock deductions, boost your super, and make your money work harder for you.
FAQs: Tax Tips for Students and Young Professionals in Australia
Can students claim tax deductions in Australia?
Yes — if the expenses are directly related to earning income. Common deductions include work uniforms, tools, home office costs, and in some cases study expenses (if linked to your current job).
Are university course fees tax deductible?
Only if your course is connected to your current employment. General education or study to enter a new career isn’t deductible. Keep receipts for textbooks, equipment, and travel if eligible.
Do HELP/HECS loans affect my tax return?
HELP and HECS loans don’t reduce your refund directly, but repayments are automatically calculated once your income exceeds the threshold. Your tax return helps the ATO determine how much you need to repay.
What is the low-income tax offset (LITO)?
The LITO reduces the amount of tax you need to pay if your income is below certain thresholds. Many students and early-career professionals benefit from this automatically.
Is it worth contributing to super while I’m still studying or early in my career?
Yes — even small contributions can compound over time. You may also qualify for the Government Co-Contribution, which boosts your super by up to $500 per year when you contribute personally.
Want to see what tax strategies are right for the next stage of life? Check out our guide for Singles / Early Career.
Return to Tax Hacks for Every Stage of Life article.
