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The ATO has lodged an appeal against the decision of the Federal Court in this case. The court had held that the taxpayer, who received a youth allowance as a university student, was entitled to a tax deduction for her education expenses.

Until this matter is resolved, the ATO will continue to apply the view set out in TR 98/9. That is, education expenses are not deductible against various Commonwealth educational assistance schemes.

For more information go here.

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