Court Allows Student to Claim Self-education Expenses

The Tax Office is seeking to appeal a decision by the Federal Court that ruled education expenses could be claimed as a tax deduction by a university student who received a Youth Allowance.

The student was successful in her bid to claim $920 as self-education expenses, including travel costs, student administration fees and depreciation on her compuiter.

In the year she claimed the expenses, she earned $14946 and also received a Youth Allowance of $3622.

The Tax Office has sought special leave to appeal the decision in the Hight Court.

"Until the matter is resolved, the Tax Office will continue to apply the view set out in Income Tax Ruling TR 98/9. That is, education expenses are not deductible against various Commonwealth education assistance schemes," the Tax Office said in a statement.

(source "Tax Practice" Autumn 2010 ATMA)

Copyright 2014. My Tax Zone.