Teachers and educators often incur a range of work-related expenses throughout the year, from classroom resources and professional development to union memberships and work-related subscriptions.
However, there can be confusion around which costs may be deductible and how they should be treated at tax time.
This uncertainty often leaves educators second-guessing what they can legitimately claim, and many either miss out on deductions or make avoidable mistakes that could trigger issues with the ATO. The rules can be nuanced, particularly when it comes to distinguishing between personal and work-related expenses, or knowing what records need to be kept. With tax time already a busy period, clearer guidance can make a significant difference in helping teachers get it right and maximise their return.
Mark Chapman is the Director of Tax Communications at H&R Block. With over 30 years of experience as a tax professional in both the UK and Australia, Chapman has established himself as a leading expert in taxation for individuals and small to medium-sized enterprises (SMEs).
Below, The Educator speaks to Chapman about key tax rules for educators, what work-related expenses can be claimed, and the common mistakes teachers make at tax time.
TE: With many educators dipping into their own pockets to support classroom learning and stay professionally up to date (often without clear guidance on what is claimable) what are the tax rules around common work expenses for teachers, university lecturers and teaching assistants?
Educators can generally claim a deduction for work-related expenses if they have personally incurred the cost, it directly relates to earning their income, and they were not reimbursed by their employer. Teachers, lecturers and teaching assistants often incur out-of-pocket costs in areas such as classroom materials, professional learning and teaching resources. However, private or domestic expenses cannot be claimed, and any work-related expense must be supported by appropriate records such as receipts or bank statements. If an expense has both work and private elements, only the work-related portion is deductible.
TE: Given the wide range of out-of-pocket costs educators face, from everyday classroom supplies to ongoing professional learning and association fees, what types of work-related costs may be deductible, including classroom supplies, professional development and memberships?
A range of work-related expenses may be deductible where they are directly connected to an educator’s employment duties. Common examples include classroom supplies such as stationery, teaching aids, whiteboard markers and educational materials purchased for student use. Professional development costs—such as training courses, seminars or conferences that maintain or improve existing teaching skills—may also be deductible. In addition, membership fees for professional bodies like the Australian Education Union or the Australian College of Educators may be claimable if they relate to the educator’s current role. However, expenses related to gaining new employment or qualifications that lead to a different career are generally not deductible.
TE: At a time when educators are juggling heavy workloads and tight deadlines, it can be easy for tax obligations to fall down the priority list, so what are the most common tax mistakes educators make at tax time?
One of the most common mistakes educators make at tax time is claiming expenses that have been reimbursed by their school or university. Another frequent error is claiming the full cost of items that are partly used for personal purposes, such as laptops or tablets used at home. The Australian Taxation Office (ATO) also regularly sees claims for private expenses—such as everyday clothing worn to work—that are not deductible unless they are occupation-specific or part of a compulsory uniform. Poor record-keeping is another issue. Educators should keep receipts, invoices or digital records for any work-related expenses and ensure claims are reasonable and directly linked to their teaching duties.