Austudy Students Can Claim Study Expenses Against Tax

A change in tax law means students who received Austudy (or ABSTUDY) allowances can claim study-related expenses against taxable income. The ATO will automatically be factoring in a $550 deduction for students who received those allowances between 2007 and 2010 and who submitted a tax return.

This doesn't necessarily mean you'll get money back; if you didn't have sufficient taxable income in those years to pay tax anyway, then the deduction makes no difference. However, when you're on a tight study budget, every extra cent is welcome, so students should keep an eye out for a letter from the ATO. (The law is in the process of being changed so this isn't likely to work for future tax years.) Hit the link for more information.



    Yes, the law will change from July 1, so these is the last years you can do it. Also suggest people look closely at 2009, cause if they pay no tax they may need to pay back that bonus $1,000 we got back then... this has not be clarified. But by all means everyone go out find them reciepts and make amendments to your previous 2 returns... asap.

    a lot of students I know were pretty stoked until they realised it was a deduction, not a payout. :( Didn't pay tax anyway! (centrelink + occasional hospitality jobs)

    woodsdog - how does one make such amendments?

    I got this letter a few months back.

    You only need to lodge an amendment if your deductions would have been > $550. You'll get the $550 deduction (and respective refund, where applicable) automatically.

    You do need receipts when you go to lodge your 2011 ITR.

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