Claiming deductions for education expenses against youth allowance

Claiming deductions for education expenses against youth allowance

As a result of a High Court decision on 11 November 2010, you may be eligible to claim a deduction for your study expenses if you received youth allowance to study full-time.

You do not need to do anything to claim a deduction. If you paid tax in the 2007, 2008, 2009 and/or 2010 years, 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.

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 in your tax return, and
  • you did not claim a deduction for these expenses.

    You paid tax if:

  • your tax refund for that year was less than the tax taken out of your income during the year, or
  • you had to pay a tax bill for that year.