Private ruling: Self education
Published: November 2011
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Are you entitled to a deduction for the cost of consumables? | A1: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except to the extent that they are of a capital, private or domestic nature, or relate to the earning of exempt income. In Commissioner of Taxation v. Anstis (2010) HCA 40, the High Court considered the deductibility of expenses incurred by the taxpayer in undertaking her study which was a requirement to her receiving the Youth Allowance. The occasion of her study expenses was to be found in what she did to establish and retain her statutory entitlement to the receipts. You were required to undertake a course of study to receive Youth Allowance. You have incurred expenses for consumables which is a requirement of completing your course. Therefore, you are entitled to a deduction for the expenses.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You are a full time student. | You are in receipt of Youth Allowance. | A requirement of your course is that you purchase consumables to complete tasks.