News 
 National News 
 National 
 General 
 Student beats the Tax Office 

Student beats the Tax Office

05 Nov, 2009 10:11 AM
UNIVERSITY undergraduates will be able to claim educational expenses as a tax deduction after a former student had a landmark win in the full Federal Court yesterday.

Symone Anstis, a former Australian Catholic University student, was successful in her bid to claim $920 as self-education expenses after fighting the Taxation Office through a number of jurisdictions over three years.

While studying full-time to be a primary teacher, Ms Anstis worked as a part-time sales assistant for retail chain Katies, where she earned $14,946. She also received a youth allowance of $3622 during the 2006 income year. She claimed education expenses including travel costs, supplies for children during teaching rounds, student administration fees and depreciation of her computer.

The Tax Office rejected the claim, so Ms Anstis and her father, Michael, who is a qualified solicitor but does not work as a lawyer, fought it all the way to the hearing in Melbourne yesterday.

The full court of the Federal Court upheld an earlier decision that because the former student had to be enrolled in a full-time course of study to get her assessable income of Youth Allowance, any costs incurred in the course of studying should be deductible.

''I am very happy with the outcome; my Dad did a very good job,'' she said.

''When you are a student everything makes a difference, every little bit helps. I think I will be able to get $300 back. I have been waiting a long time but it will go pretty quickly.''

Tax experts say hundreds of thousands of university students who receive Youth Allowance could benefit from the ruling, but they will need to generate a taxable income above $15,000.

About 440,000 students receive Youth Allowance or Austudy. Many of these students would earn enough with the addition of part-time work to have a tax liability, according to Asssociate Professor Dale Boccabella from the University of NSW.

He said items including computer depreciation, stationery or textbooks could now be claimed as a deduction. In the past, the Taxation Office had made it clear it would not allow educational expenses to be claimed against welfare payments.

"The decision further complicates tax administration in the area of self-education expenses, an area that is already riddled with difficulties," he said.

A spokeswoman for the Tax Office said the decision was being assessed.

Print
Increase Text Size
Decrease Text Size

comments


No comments yet. Be the first to comment below.

post a comment


Screen name  *
Email address  *
Remember me?
Comment  *
 
We invite and encourage our readers to post comments. Comments are moderated and will appear as soon as our editor has approved them. When posting comments you agree to be bound by our Terms and Conditions.
Symone Anstis, who won a landmark case against the tax office. Photo: Joe Armao
Symone Anstis, who won a landmark case against the tax office. Photo: Joe Armao
1) Apple iPhone 4 32GB43 plans 1%
2) Apple iPhone 4 16GB44 plans 7%
3) HTC Desire4 plans 3%
4) Apple iPhone 3GS 8GB33 plans 1%
5) Sony Ericsson Xperia X10 Mini Pro37 plans 1%

Mobile Phones | Broadband Plans

Get the best deal at Fairfax Digital - Rural Press



The Observer







Weather brought to you by:

Weatherzone

Navigate

Classifieds

More Ways to Read

Front Page

Current Issue
Privacy Policy | Conditions of Use | Advertising Terms | Copyright © 2010. Fairfax Media.
 SEND...
 SAVE...
 SHARE...