As reported earlier , the High Court ruled in 2010 that receipients of Youth Allowance and certain other benefits that are paid only if the beneficiary is undertaking a course of education are allowed to claim a deduction for the costs of undertaking the course

The Australian Government has now released draft amendments to disallow deductions against taxable government assistance payments that are eligible for a rebatable benefit following the High Court’s decision in FCT v Anstis [2010] HCA 40.

Government assistance payments that are currently eligible for the beneficiary rebate include, but are not limited to:

  • Austudy
  • ABSTUDY
  • Newstart Allowance
  • Youth Allowance (student)
  • Youth Allowance (jobseeker)

The amendment is proposed to have effect from 1 July 2011.