Tax Deductions for Teachers & Tutoring Businesses

If you’re working as a teacher or running a tutoring business in Australia, you can claim a number of tax deductions. In this article, we’ll look at the most common tax deductions for teachers.

We’ll also look at ways you can streamline your finances using QuickBooks Online accounting software. Using our tax feature, you can save time and reduce stress thanks to automatic tax tracking and calculation.

Tax deductions available for tutors and teaching businesses

There are many tax deductible items for teachers that you might not be aware of. The Australian Tax Office (ATO) allows you to claim business deductions related to your profession, which can help to reduce your taxable income. 

Here, we’ll look at the most common tax deductions for teachers and tutoring businesses in Australia. 

Home office expenses

Expenses related to running a home office are an allowable tax deduction for teachers. These expenses can include:

• Internet costs
• Phone costs
• Electricity for heating, cooling, and lighting your home office
• Depreciation of office equipment

To be eligible, you must be using your home office to fulfil the duties of your teaching job (rather than just carrying out minor tasks). You need to be able to provide proof that you’ve incurred additional expenses from working in your home office—meaning you’ll need to hold onto any relevant bills and receipts.

Read about working from home expenses to find out more. 

Professional development

If you’ve spent money on professional development over the last financial year, you might be able to claim it as a deduction. The ATO permits you to claim for self-education expenses if they relate directly to your current job. For example, if you’re a kindergarten teacher and you attend a course on teaching children with special needs, you can claim this expense as a tax deduction.

Eligibility depends on the course, conference, or certification having sufficient connection to your employment activities as a teacher. It needs to either maintain or improve the skills/knowledge needed for your current job, or increase your chances of earning a higher income from your current profession. 

Educational materials and supplies

Other common tax deductions for a teacher include educational materials and teaching aids such as stationery, technical journals, and reference books. These materials and supplies are only eligible to claim if you need them to perform your duties as a teacher (or run your tutoring business). 

Find out more in the ATO’s guide to income and work-related deductions for teachers and education professionals. 

Equipment and software

You can claim computers, software, and tools (that are directly related to your work) as a tax deduction for teachers. Here are some examples of items you might be able to claim:

• Calculators
• Phones
• Computers
• Software
• Cameras
• Musical instruments
• Bags and cases
• Stationery and office supplies
• Office furniture 

To be eligible, you must use the item to perform your work duties, and you have to keep records of the purchase and item usage. 

Find out more about claiming computers, laptops, and software as tax deductions, and eligible tools and equipment to perform your work.

Travel expenses

While it’s generally not possible to claim your commute to work as a tax deduction, there are certain instances in which you can claim travel expenses that are related to your educational job. 

Here are some examples of transport-related expenses that can be claimed:

• The cost of transporting bulky equipment or tools that are needed for your work
• Motor vehicle travel in situations where you are transporting students, or travelling to a destination for training purposes
• Travel costs related to self-education expenses (only eligible in limited circumstances)
• Overnight travel costs incurred by traveling to a different location for work or training
• Car expenses when you drive between separate jobs on the same day (for example, travelling from your job as a school teacher to your second job as a musician)

You will need to keep a logbook of your travels so the ATO can calculate costs accurately. Learn more at the ATO’s guide to trips you can and can't claim.

Marketing and advertising

This is mostly applicable to those who are running a tutoring business. Many of the costs related to promoting your small business are tax deductible—including fees paid to marketing agencies. 

Here are some examples of advertising expenses that you can claim:

• Brochures, banners, signage, and banners
• Ad placements online and in print media
• TV and radio commercials
• Trade show and exhibition costs
• Advertising agency and consultant fees

More information can be found here: Deductions for small business.

How to claim deductions

Here is a quick guide to lodging your tax return and claiming deductions:

1. Log into myID: You will need a myID account (formerly known as myGOV) to be able to lodge your tax return online. Here’s how to link your myID to the ATO. 

1. Prepare your tax return: Once you’ve logged into myID, go to myTax and select ‘Lodge Tax Return’. The system will pre-fill some of your details.

1. Select ‘Deductions’: The Deductions section will allow you to enter each work-related expense you’re claiming. Follow the prompts and add any ATO tax deductions for teachers.

1. Review your tax return: Once you’ve filled in all the relevant sections, take the time to carefully review your tax return to make sure everything is accurate. 

1. Submit your return: You can do this by clicking ‘submit’ in the myTax portal. In most cases, your tax refund (if eligible) will be sent within two weeks. 

Bonus tip! If you download the ATO app, you can use the myDeductions tool throughout the year to log your expenses.

Record-keeping requirements for tax deductions

Once you have a good understanding of what is tax deductible for teachers, it helps to implement a system for record keeping. You’ll need to keep all the receipts for deductible expenses, plus bank statements to show transactions. 

Here are some tips for keeping detailed records:

• Keep all receipts and invoices for purchases
• Set up a work diary that records all the days you worked from home
• If you need to record work-related car trips, keep a car logbook
• Use the ATO app to make records of your expenses—this will make your life easier when it comes to submitting your tax return

Common mistakes to avoid

When claiming income tax deductions for teachers, mistakes can happen. Here are some common errors, and how to avoid them:

• Mixing up personal expenses with business expenses: It’s important to separate receipts from your personal purchases from receipts for work-related purchases. Failure to do so might result in your tax return being audited by the ATO.

• Not holding on to receipts: Without proper records, deductions may be disallowed by the ATO.

• Claiming non-deductible items: Personal grooming, everyday clothing, or general home utilities (like rent or groceries) usually can’t be claimed.

• Overlooking eligible deductions: Expenses like teaching resources, online subscriptions, professional development, and home office costs are often missed.

• Incorrectly claiming travel expenses: Only travel directly related to work (e.g. visiting students or attending workshops) is claimable, not general commuting.

• Not using a logbook for home office or car use: A lack of accurate tracking can lead to incorrect claims.

Learn more here: 10 Common Tax Deduction Mistakes and How to Avoid Them.

Maximise your tax deductions with QuickBooks

QuickBooks Online is used by teachers and tutors around the world to take care of administrative tasks and make tax time easy. We offer streamlined accounting for educational institutions—helping schools and tutoring businesses manage their bookkeeping and stay tax compliant. 

Try our 30 day trial to see how QuickBooks can be tailored to your needs as an educator.