Full-time students on youth allowance can now claim a deduction for their study expenses

Claims for 2011 and later years:

If you receive youth allowance in 2011 or in a later income year, you need to keep records of your study expenses to claim your deduction.

Claims for previous years where you lodged a tax return:

You are eligible for a deduction for your study expenses for each year you lodged a tax return if: you received youth allowance to study full-time and declared it on your tax return and you did not claim a deduction for these expenses.

You do not need to do anything to claim a deduction. If you paid tax in the 2007, 2008, 2009 and/or 2010 years, the ATO will write to you between 1 March 2011 and 30 April 2011 to advise you that they will amend your assessment to include a deduction of $550 for each year you are eligible.

This doesn’t mean you’ll 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.

www.ato.gov.au/studyexpensechanges

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