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Edited version of your private ruling
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Ruling
Subject: Self education
Question
Are you entitled to a deduction for the cost of consumables?
Answer
Yes.
This ruling applies for the following period
Year ended 30 June 2011
The scheme commenced on
1 July 2010
Relevant facts
You are a full time student.
You are in receipt of Youth Allowance.
A requirement of your course is that you purchase consumables to complete tasks.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except to the extent that they are of a capital, private or domestic nature, or relate to the earning of exempt income.
In Commissioner of Taxation v. Anstis (2010) HCA 40, the High Court considered the deductibility of expenses incurred by the taxpayer in undertaking her study which was a requirement to her receiving the Youth Allowance. The occasion of her study expenses was to be found in what she did to establish and retain her statutory entitlement to the receipts.
You were required to undertake a course of study to receive Youth Allowance. You have incurred expenses for consumables which is a requirement of completing your course. Therefore, you are entitled to a deduction for the expenses.