Tax Updates for the 2010-2011
The following are the changes to the tax code for the 2010-2011 tax year:
Study Expense Deductions for Youth Allowance, Austudy, and ABSTUDY Recipients
For 2010-2011 those who received Youth Allowance, Austudy, or ABSTUDY can claim a deduction for study expenses.
Starting 1 July 2011, however, the Government has decided to prevent deductions from being claimed against all government assistance payments, including Youth Allowance, Austudy, and ABSTUDY.
Newstart and Youth Allowance Recipients Who Were Actively Seeking Paid Work
For 2010-2011 those who received Newstart allowance or were a Youth Allowance job seeker can claim deductions for expenses they incurred in actively seeking paid work, including. These expenses you can deduct include
- short-term travel costs, for example to a job interview
- training courses, including self-employment training and assistance and textbooks
phone calls made while seeking work
- resume preparation
- expenses incurred in meeting the requirements of the Employment Pathway Plan
As with all deductions, you cannot claim private or domestic expenses. In this case you also cannot claim expenses that were only tangentially related to your job search (such as new clothes that can be worn conventionally) or expenses that are paid for you by Job Services Australia.
Note that as of 1 July 2011 the Government no longer allows deductions to be claimed against all government assistance payments.
Natural Disaster Donation Receipts
You can claim a tax deduction for donations of $2 or more to an approved organization’s bucket collection for natural disasters such as the floods in Queensland, New South Wales, and Victoria, the bushfires in Western Australia, Cyclone Yasi in Queensland, or the earthquakes in Christchurch and northeastern Japan.
You can deduct up to $10 without a receipt. To claim deductions of more than $10 you will need a web receipt, credit card statement, or receipt from a bank or retail outlet. If you made a donation through ‘workplace-giving,’ that amount should be listed on your payment summary.
Tax Exemption for Certain Payments
Due to the natural disasters that occurred during the financial year, the Government made certain payments exempt from tax, including
- disaster income recovery subsidies paid for Cyclone Yasi and the floods that began 29 November 2010
- ex-gratia payments to New Zealand non-protected special-category visa holders following an Australian natural disaster during 2010-2011
- cleanup and recovery grants to small businesses and primary producers for the floods that began 29 November 2010 and Cyclone Yasi