Thousands of Australians are eligible for tax benefits as a result of the ATO’s response to a recent High Court decision.

The ATO has estimated automatic tax deductions of $550 per annum for Australians in receipt of Austudy and ABSTUDY from 2007 to 2010 tax years. Additionally, expenses incurred in the current financial year can be claimed for the first time, this is in addition to the Youth Allowance recipients who had their returns amended in April of this year.

H&R Block Regional Director Frank Brass today said “Many thousands of Australians will need to search-out their receipts as current year tax entitlements will now cover these new areas of deduction.”

“It is important to note that eligible taxpayers have the option be able to make deductions that exceed the ATO determined deduction if they have receipts or evidence of expenses in excess of that amount,” said Mr Brass.

Further, recipients of Newstart Allowance and Youth Allowance are eligible for specific deductions for expenses related to job seeking in the current financial year. Recipients are also eligible to have their tax returns from 2006 to 2010 amended if they have eligible claims.

Jobseekers can claim for expenses directly incurred seeking work. This includes costs of travel to interviews, phone call costs seeking work, self-employment training and resume preparation.

H&R Block will be reviewing past tax returns and advising eligible clients of potential financial benefits of amendments when they complete 2011 tax returns.

The Government has indicated that the law will be changed to close these claims for future years.