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Youth Allowance - Deductions available

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Prospector said:
Yes. Is that layman enough? :p:

You must be studying to receive Youth Allowance, therefore, anything you have to spend in order to receive Youth Allowance, ie anything you spend in order to study (I wonder if that also includes HECS aka HELP) has, by this decision, now become tax deductible.
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so assuming i'm still studying full time, i can go to officeworks tomorrow and buy myself a new laptop and deduct that from FY08-09 Earnings?

brilliant:D
 
I'm not a financial advisor or anything, but here's my two cents worth:

She was allowed to claim it because it formed part of her 'assessable income'. I.E. She was paying tax on it.


"When she lodged her tax return for the financial year ending June 2006, she declared $14,946 of earnings from a part-time job as well as $3,622 from Youth Allowance.

When it came to claiming tax deductions, Ms Anstis included $920 spent on textbooks, a computer, transport and a university administration fees.

She reasoned that her Youth Allowance was part of her income, so she should be able to claim deductions on relevant costs"

Therefore, as she was liable to pay tax on her total income of $18,568 (including the Youth Allowance) it seems reasonable that she should be allowed to claim deductions against it; and The Federal Court in Melbourne agreed.

Addresses to this story on ABC Melbourne and the offical ruling can be found here:

abc.net.au/news/stories/2009/04/16/2544542.htm?site=melbourne
law.ato.gov.au/atolaw/view.htm?docid=JUD/2009ATC20-098/00001


It should be noted however, that the ATO has lodged an appeal and until that's sorted they will continue to routinely deny similar claims.


"Anstis v FCT

On 1 April 2009, the Federal Court handed down its decision in Symone Anstis v. Federal Commissioner of Taxation. Ryan J. held that Ms Anstis, who received a youth allowance as a university student, was entitled to a tax deduction for her education expenses.

The Commissioner has lodged an appeal against the decision. Until this 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 educational assistance schemes."

.ato.gov.au/individuals/content.asp?doc=/content/00192011.htm
 
The question is, do I claim for my text books, travel to uni, etc., on this financial year. Could get quite a bit back.
 
Largesse said:
so assuming i'm still studying full time, i can go to officeworks tomorrow and buy myself a new laptop and deduct that from FY08-09 Earnings?

brilliant:D
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You can only claim depreciation expense for your laptop, not the actual purchase cost.

ojm said:
The question is, do I claim for my text books, travel to uni, etc., on this financial year. Could get quite a bit back.
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Only if you claim these as an expense, at this point in time, if they relate to current employment and against non YA or Austudy income. If you have a look at the quote from the ATO saying that they will appeal, they also said they will continue to disallow claims like this.

The Commissioner has lodged an appeal against the decision. Until this 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 educational assistance schemes."
 
akiness said:
I'm not a financial advisor or anything, but here's my two cents worth:
She was allowed to claim it because it formed part of her 'assessable income'. I.E. She was paying tax on it.
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That seems entirely reasonable. In the Youth Allowance application, there is a question that asks if you want tax taken out of your payments. So, Youth Allowance is taxed like any other job and is added to your taxable income!

Is that girl studying accounting? If so, I want to know when she graduates, she is one smart cookie (or has a great accountant do her returns!)
 
If your on YA you should be eligible for the "Education Tax Refund". I got a letter the other day from the gov reminding me about it and telling me how to claim
 
Largesse said:
so assuming i'm still studying full time, i can go to officeworks tomorrow and buy myself a new laptop and deduct that from FY08-09 Earnings?

brilliant:D
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If you bought in april you could claim 3 months of depreciatoin.
 
Alright, so it's tax time now. Anyone have any clear-cut indication of whether or not we actually can claim deductions against youth allowance payments? Furthermore, would University Fees paid upfront be allowable for this as well?

I really wish I hadn't thrown out text book receipts :( As well as receipts for some computer peripherals!

How does one even prove transportation costs? I suppose with attendance being on record, it can be established that either public transportation / driving costs were incurred.

I really wish the ATO would release something on this.
 
Nyden said:
Alright, so it's tax time now. Anyone have any clear-cut indication of whether or not we actually can claim deductions against youth allowance payments? Furthermore, would University Fees paid upfront be allowable for this as well?

I really wish I hadn't thrown out text book receipts :( As well as receipts for some computer peripherals!

How does one even prove transportation costs? I suppose with attendance being on record, it can be established that either public transportation / driving costs were incurred.

I really wish the ATO would release something on this.
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Wasn't it established earlier that just because the court ruled that way for a specific case, it doesnt mean that the rules of the ATO will change... It may mean that you will have to defend your case in the courts in necessary.
 
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