Warning: This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
17 December 2010
|
Media release 2010/44
|
The High Court decision in Anstis on 11 November 2010 means that you may be eligible to claim a deduction for your study expenses if you received youth allowance to study full-time.
Tax Commissioner Michael D'Ascenzo said that the ATO will amend tax assessments of eligible taxpayers to include a tax deduction for study expenses for the 2007, 2008, 2009 and 2010 income years.
"We want to make it simple and convenient for people to receive their entitlement and we also recognise that many eligible taxpayers may not have kept records of their expenses," Mr D'Ascenzo said.
"We will issue amended assessments to include a deduction of $550 for each year you are eligible. These deductions represent amounts that people who receive youth allowance would reasonably have incurred."
This does not mean that you will get a refund of $550 for each year. Tax deductions reduce the amount of income you have to pay tax on, so if you are entitled to a $550 deduction, this means the income you pay tax on will be reduced by $550.
"We will be writing to eligible taxpayers between 1 March 2011 and 30 April 2011 advising them that they will be receiving amended tax assessments," Mr D'Ascenzo said.
If you are eligible, you do not need to do anything. Any amounts refunded to you do not need to be included in your tax return.
"Taxpayers who may be eligible for a deduction and have not yet lodged their 2009-10 tax return can make their claim under Item D4 'Work-related self education expenses' in their tax return."
Eligible taxpayers are those who, in the relevant income year:
- received youth allowance to study full-time and declared it as income in their tax return
- paid tax
- have not already claimed a deduction for their study expenses.
Where students believe they have incurred expenses of more than $800, they can seek an amendment for that higher amount, if they have records to support their claim. Remember that the first $250 of education expenses is not deductible.
Background
The $550 deduction amount is based on information published by academic institutions of the average amount of study expenses of $800.
Under the tax law the first $250 of education expenses is not deductible. This leaves a deduction amount of $550.
More information
More information can be found at www.ato.gov.au/studyexpensechanges. A decision impact statement has been released and is available at www.ato.gov.au.
Last Modified: Friday, 17 December 2010