Tax deductions - and students !

We can expect a rush of legislation to close a loophole concerning tax deductions available to students.

For some reason the taxman believes that students, artists and musicians deserve to be poor - and in tax matters treats them differently to other wage earners. Now a court has ruled that they are entitled to claim deductions for expenses associated with getting themselves educated - and that the youth allowance formed part of assessable income.

This claim went all the way to the High court and the ruling will cost the government money by way of a new, allowable tax deduction.

It also highlights the wide discrepancy between the treatment of students and other wage earners. Increasing work skills by way of education gets preferential treatment when it is done by adult wage earners - and yet this was previously denied to students.

It seems that old habits die hard !