Updated November 12th 2013

Following from a decision in the High Court in November 2010 full-time students in receipt of Youth Allowance may be able to claim an income tax deduction for study expenses. The ATO will amend the tax assessments of eligible taxpayers for the years ended 30 June 2007, 2008, 2009 and 2010 by including a $550 deduction for each year. In order to be eligible for the automatic amended assessment an individual is required to meet the following criteria:

  • Received Youth Allowance for full-time study and declared it as income in their income tax return
  • Have paid tax
  • Have not already claimed a deduction for their study expenses

If a full-time student believes they incurred study expenses of greater than $800 they should seek an amendment for the higher amount provided records are available to support a claim.