Self Education Expenses
The Australian Taxation Office has recently released a Decision Impact Statement in regards to “Self Education Expenses and Youth Allowance”. In prior years, the ATO has always been of the position that deductions cannot be claimed against Youth Allowance, however this was overturned in the Anstis Case decided in late 2010. The ATO now states that eligible full time students are eligible to claim self education expenses against their Youth Allowance income.
The ATO has advised that it will be contacting all taxpayers who declared Youth Allowance in their 2007, 2008, 2009 and 2010 income tax returns and advising taxpayers that they will be entitled to an automatic $550 income tax deduction each year without the requirement for any substantiation and that the ATO will automatically amend these returns on the taxpayers behalf.
If you have any queries on this please contact us.