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The Government will remove the part-year tax free threshold for taxpayers ceasing full-time education, with effect from the 2006-07 income year. Currently, taxpayers who cease full-time education for the first time are not eligible for the full tax free threshold of $6,000, but only a proportion of that amount.

For a copy of the Treasurer's press release No 39, 9 May 2006, go here
See Budget Paper No 2, pp 25-6

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