Following a recent High Court relating to the deductibility of education expenses against Youth allowance income the Australian Taxation Office is amending Tax Assessments for the years ending 30th of June 2007, 2008, 2009 and 2010 to allow for an automatic deduction of $550 for those in receipt of Youth Allowance, Austudy and ABSTUDY income.
If you are in receipt of any of the above allowances and believe that you have incurred study related expenses in excess of $800 (the $550 deduction is calculated as $800 less the first $250 paid by the taxpayer) you can apply for a further amended assessment to claim those expenses provided you have written evidence. This applies only to applicable study expenses and not general living expenses.
Taxpayers who received the Newstart allowance and Youth allowance for job seekers during these years may also be entitled to a deduction for expenses they incur in actively seeking paid work.
These expenses can also be claimed for the 2011 income tax year. However, the Government announced in the recent Budget its intention to change the law to prevent deductions being claimed against any government assistance from 1 July 2011.
Should you have any queries in relation to your education or job seeker expenses or wish to request an amended assessment please contact Brian Madigan. We are also happy to assist with any other taxation matter you may have.