Everything You Need To Know About EOFY Time

Taxes, sales and everything in between.

As June 30 comes around, it’s most likely not your first time hearing the term “EOFY”. But what exactly is it and how does it apply to students? EOFY is an acronym for “end of financial year”. In Australia, this runs from 1 July to 30 June. This is a very busy time for individuals and businesses as they finalise their financial activity, such as lodging individual tax returns or submitting business reports. If you're wondering why it runs during this time, it's so government departments have more time to prepare their accounts following the busy Christmas and New Year's period. For students, this time is equally as important. It’s the time for tax deductions on study expenses, useful sales on tech and general financial education. 

Can students claim tax deductions? 

Each year, many taxpayers must complete a tax return to report their income and calculate how much tax they owe. Depending on how much tax has already been paid through their employer, they may receive a refund or need to pay additional tax. 

Tax returns also allow people to claim deductions for eligible work-related expenses, which can reduce taxable income and increase any refund received. 

Students may be able to claim study-related expenses as self-education expenses, but strict ATO rules apply. To be eligible, the study must be directly related to a current job and help maintain or improve the skills needed for that role or increase income from that employment. Only subjects relevant to the current job can be claimed. For example, if a student is completing a double degree, only the units connected to their current employment may be eligible for a tax deduction. 

Study expenses students may be able to claim. 

If a student’s self-education expenses meet the eligibility criteria, they can claim a deduction for the following expenses: 

• Tuition, course, conference or seminar fees 

• General course expenses 

• Decline in value of depreciating assets 

• Car and other transport expenses 

• Accommodation and meal expenses (incurred when the self-education requires you to travel and be away from your home for one or more nights) 

• Interest on borrowings 

Common EOFY mistakes students should avoid. 

Tax time is a good time for students to avoid common financial mistakes and learn from them for the financial year ahead. Students should always look for saving opportunities with sales and student discounts when purchasing study-related items. Additionally, having an emergency fund where you regularly transfer a portion of your income will protect you from sudden unexpected costs (such as losing your job, your car breaking down or a long-term illness). Finally, overestimating tax deductions or failing to lodge a tax return on time can create unnecessary complications during the tax return process. Keeping a clear filing and organisation system will avoid these issues. 

Useful sales to keep your eye on. 

EOFY sales are the perfect time to upgrade your study set-up, update your tech, or enhance your study space to increase productivity. If you want to treat yourself for finishing the first half of the academic year, here is a guide to EOFY sales across fashion, shoes, bags, home, tech and more! 

For education-related products, don’t purchase with the intent to claim back these items, as this often leads to over-spending. Also, don’t purchase something purely because it is on sale. It often helps to know what items you need prior to sale-time, to see if you still need it when the sales roll around, and to avoid impulse purchases. 

If you have a product in mind, don’t forget to check out our student discounts here. 

Organising your finances for the new financial year.

To prep for next year, here is a list of all the written evidence (such as receipts) students should keep for self-education expenses: 

• course fees 

• textbooks 

• stationery 

• depreciating assets such as computers, laptops and office equipment 

• transport expenses 

• travel expenses, unless an exception applies. 

You also need to be able to explain how the course directly relates to your employment activities at the time you incurred the self-education expenses. To make this process easier, you can use the myDeductions tool in the ATO app to keep records of your expenses and income in one place, including photos of your receipts and invoices. 

EOFY checklist for students. 

Tax time is the perfect moment to reflect on your financial strategies and implement new habits. In preparation for lodging your tax return, ensure you gather your income statements and organise your receipts. Then take the time to review your subscriptions and reassess whether you use them to their full potential. If not, cancel them immediately. Finally, update your budget. Look at your expenses from the previous few months and what your financial goals are for the future. Will you get there with your current spending habits? If not, make the necessary adjustments. 

Starting the new financial year on the right foot. 

Tax time can be overwhelming, but it doesn’t have to be. There are many resources and tools out there to help you maximise your tax return and use tax time as a valuable opportunity to review your finances. If you need a hand with some of the financial terminology, here is a summary of common financial terms and their meanings. Good luck!