No More Deductions for Youth Allowance Recipients

The Government will amend the tax law to prevent deductions being claimed against all government assistance payments, with effect from 1 July 2011. The announcement is in response to a 2010 High Court decision which had held that a Youth Allowance recipient could claim a deduction for certain expenses incurred in gaining the payment. The Government says the change is designed to maintain the integrity of the deductions system.