Phone: (03) 9563 4688


Address: 17D Chester Street, Oakleigh VIC 3166

Latest Accounting News
Hot Issues
Single Touch Payroll – 1 April 2018 Action
Property investors on notice after ATO spots false claims
ATO issues update on cryptocurrency compliance traps
Australia's vital statistics
Accountants spy elder abuse spike as mortgage stress sets in
Tax office releases fresh guidance on SMSFs
Labor's tax plans could favour the rich, analysis shows
FBT Reminder – Odometer Reading
Our website is really our digital office.
‘Substantiation will be a key focus’: ATO drums in tax time 2018 hit list
Super changes: $1.6 million transfer balance cap and death benefit pensions
Payroll, compliance issues top dodgy practices in Aussie business
Employee travel expense deductions
The Goldilocks effect - Economic and market update 4Q 17
Tax assessments confirmed for undisclosed business income
Super returns on the up despite clients’ hesitation
Australia. All you need to know to be the expert.
Business confidence hits 5-month high: NAB
Caution advised on best interests duty with cryptocurrencies
$20,000 asset write-off renewed for another financial year.
SMSF compliance traps with bitcoin
Where Australia is at. Our leading indicators.
Foreign resident CGT withholding: early recognition of tax credit
ATO set to doorknock as 60% of cash-heavy businesses caught
New downsizing cap available
Articles archive
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 2 April - June 2006
Quarter 1 January - March 2006
Quarter 4 October - December 2005
Quarter 3 July - September 2005
Quarter 1 of 2011
FBT Reminder - Odometer Reading
Australian Taxation office (ATO) provides SMSF Disaster Relief
Youth Allowance - Australian Taxation Office (ATO) Initiative
February 2011 Newsletter
Commonwealth Education Payments
Flood Victims - Recovery Resources
Tax Lodgements for Flood Affected Taxpayers
Bucket Donations to Flood Relief

January 2011 Newsletter

Personal Property Securities (PPS)
Current Depreciating Asset Issues
Budget Promises Fade Away
Youth Allowance - Australian Taxation Office (ATO) Initiative

The ATO will shortly give eligible taxpayers a deduction of $550 during 2007, 2008, 2009 and 2010.

A previous article has described the court case of Anstis, a student who won her case for expenses necessarily incurred to obtain an Austudy allowance. The original article from 31-7-09 is copied below this new article.  

Whilst the ATO may have been unhappy at losing the case, the precedent at the highest court meant that many taxpayers were ready to lodge objections for previous years.

Instead, the ATO hope that by being proactive, affected taxpayers will be satisfied with the $550 deduction without any verification.

This is an arbitrary figure - if a taxpayer has incurred more, then an objection can still be lodged - subject to time limits.  Hence don't delay.

The ATO will send an explanation to affected clients, but if this letter is returned unclaimed, the deduction will not be allowed.  Any taxpayer using a tax agent will receive the letter direct, but the assessment and refund via the tax agent.

If you are affected and satisfied with the $550 as an average expenditure, then do nothing, but if you spent more than $550 then obtain the evidence straight away.  There are time limits and expect processing delays for later submissions.



Student entitled to deductions against Youth Allowance

Some commentators have been surprised by a decision to follow the logic of the meaning of "necessarily incurred", which is contrary to Australian Taxation Office (ATO) views.

The Federal Court has held that a student taxpayer who received Youth Allowance was entitled to a deduction for her expenditure in pursuing a teaching degree (on travel to and from teaching rounds, student administration fees, text books, etc), as these outgoings were incurred in the gaining of producing of her assessable income (being the Youth Allowance). 

Under the Social Security Act 1991, a recipient of Youth Allowance is required throughout the relevant period to undertake full-time study, which is satisfied if they:- 

  • are enrolled at an educational institution;
  • undertake at least three quarters of the normal amount of full-time study in respect of the relevant course; and
  • in the Secretary's opinion are making satisfactory progress towards completing the course.

The Court basically held that, since the taxpayer had to spend money to satisfy these requirements and receive the Youth Allowance, the outgoings were incurred in gaining or producing her assessable income.

We have argued this in the past, because we were of similar view as the Full Federal Court, but unable to afford to challenge the ATO.

Expect the ATO to submit that the case was decided on its facts (and therefore not have general application), but this decision could have wider application.