The ATO will continue to apply its current administrative treatment of self-education expenses. That is, education expenses are not deductible against various Commonwealth educational assistance schemes.
On 23 April 2010, the High Court granted the Commissioner special leave to appeal against the decision of the Full Federal Court in Federal Commissioner of Taxation v. Anstis. In that case, the Full Federal Court had decided that Ms Anstis, who received a Youth Allowance as a university student, was entitled to a tax deduction for her education expenses.
The High Court is expected to decide the appeal later in 2010. Until this matter is resolved, the Australian Taxation Office (ATO) will continue to apply the view set out in Income Tax Ruling TRÂ 98/9. That is, education expenses are not deductible against various commonwealth educational assistance schemes.
