EOFY is approaching: What early childhood educators should prepare now to maximise their tax return

With the end of the financial year approaching, early childhood education and care (ECEC) professionals are encouraged to review their financial records early to ensure they are accurately claiming eligible work-related expenses.

For a workforce that often invests personally in classroom resources, professional development and maintaining compliance standards, understanding what can and cannot be claimed at tax time can make a meaningful difference.

Mark Chapman, Director of Tax Communications at H&R Block Australia, says early preparation is particularly important for educators whose roles often involve out-of-pocket costs tied directly to professional practice.

“Early childhood educators frequently incur legitimate work-related expenses that are sometimes overlooked or misunderstood at tax time. Taking the time to organise records before 30 June can help ensure claims are accurate, compliant and reflective of the realities of working in the sector,” Chapman said.

Tax considerations commonly relevant to early childhood educators

While general tax guidance applies to all workers, there are several areas that frequently intersect with the day-to-day responsibilities of ECEC professionals.

Classroom resources and teaching materials

Educators often purchase learning materials, books, craft supplies or educational tools to support children’s development. Where these costs are not reimbursed by an employer and directly relate to professional duties, they may be deductible.

It is important that expenses relate clearly to income-earning activities and that records are maintained.

Uniforms and protective clothing

Branded uniforms, protective clothing and specific footwear required for workplace health and safety purposes may be claimable where they are compulsory and not suitable for everyday wear.

This can be particularly relevant in ECEC settings where educators engage in practical activities including outdoor play, art, food preparation or cleaning tasks.

Professional development and training

Ongoing training plays an important role in maintaining compliance with sector standards and supporting quality outcomes for children.

Course fees, seminars, workshops or industry memberships may be deductible where they directly relate to an educator’s current role or enhance skills required within the ECEC framework.

This may include first aid certification renewals, child protection training or early learning curriculum-related professional development.

Work-related memberships and registrations

Memberships linked to professional practice, including industry associations or publications relevant to early childhood education, may also be considered where they directly support employment responsibilities.

Record keeping and compliance considerations

Given the regulatory nature of the ECEC sector, maintaining clear documentation is particularly important.

Accurate records support both tax compliance and professional accountability, helping educators demonstrate that expenses are directly connected to their role.

Examples of useful documentation include:

• receipts for classroom resources purchased personally
• invoices for training courses or certification renewals
• evidence of professional memberships
• records of employer reimbursements where applicable

Where an employer reimburses an expense, it cannot be claimed.

Maintaining organised records throughout the year can reduce stress during EOFY and help avoid errors that may trigger ATO review.

Addressing common misconceptions in the ECEC workforce

One of the most common misunderstandings is the assumption that all classroom-related purchases are automatically deductible.

To be eligible, expenses must be directly linked to earning income and must not be reimbursed by the service provider.

Another misconception is that small purchases do not need documentation. Even low-cost items can add up over the course of a year, making record keeping an important habit for educators.

It is also important to distinguish between professional development that relates to a current role versus study that prepares an individual for a different career pathway, as this may affect deductibility.

Financial literacy and workforce wellbeing

Financial confidence plays an important role in supporting workforce wellbeing across the ECEC sector.

EOFY preparation provides an opportunity for educators to better understand their entitlements, ensure compliance obligations are met and reduce unnecessary stress associated with tax time.

Clear financial processes can also support broader workforce sustainability by ensuring educators are not unintentionally out of pocket for legitimate professional expenses.

“As cost of living pressures continue to affect many Australians, ensuring educators understand what they are entitled to claim can help them feel more financially supported in their roles,” Chapman said.

Preparing now for a smoother EOFY

Early preparation can assist educators in feeling confident their claims are accurate and compliant.

Simple steps include:

• reviewing work-related expenses incurred throughout the year
• gathering receipts and documentation before 30 June
• confirming whether any expenses have been reimbursed
• ensuring professional development costs directly relate to current duties

For ECEC professionals balancing compliance responsibilities with the demands of caring for young children, taking a proactive approach to EOFY preparation can help ensure tax obligations are managed efficiently and accurately.