Education Tax Refund

Education Tax Refund 2008/09 (ETR)

The Education Tax Refund (ETR) has now been passed by the Australian Parliament (November 27, 2008)

Under this new ETR, families who are able to claim Family Tax benefit part A, will be able to claim part of the education related costs of their children.

The basic rule will be that they can claim 50% of a pre defined annual expenditure limit.

This initial annual limit will be:

• Primary School children - $750 per year, allowing a maximum claim of $375
• Secondary School children - $1,500 per year, allowing a maximum claim of $750

The 2009-2010 income tax year annual limit for the ETR is:

• Primary School children - $780 per year, allowing a maximum claim of $390
  
• Secondary School children - $1,558 per year, allowing a maximum claim of $779
  

Any excess expenditure can be rolled over to the next tax year, but only for ONE year, after that they are lost, if not used in that next year.

The following are the allowable expenditure items

Computer for:

• (a) home use (including, in the case of an individual who has no home, use in a setting that equates to a residential setting for the person); or
  (b) use in an educational institution in place of paper based educational material
• (a) cost of acquiring (whether by way of purchase, lease, hire or hire purchase); and
  (b) cost of repairing; and
  (c) costs associated with running.

Computer related equipment for a use referred to in item 1, including:

• (a) printers; and
  (b) disability aids
• (a) cost of acquiring (whether by way of purchase, lease, hire or hire purchase); and
  (b) cost of repairing; and
  (c) costs associated with running.

Home internet connection:

• (a) cost of establishing; and
• (b) cost of maintaining.

Item of computer software:

• cost of acquiring (whether by way of purchase, lease, hire or hire purchase).

School textbooks, other paper based school learning material and stationery

• cost of acquiring (whether by way of purchase, lease, hire or hire purchase).

What CANNOT be claimed

The type of items you can’t claim include:

• School fees
• School uniform expenses NOTE: This may change, and be included from July 2011
• Student attendance at school-based extra curricular activities such as excursions and camps
• Tutoring costs
• Sporting equipment
• Musical instruments
• School subject levies - for example, payment for consumables for particular subjects such as woodwork, art or home science
• Building levies
• Library book fees
• School photos
• Donations
• Tuck shop expenses
• Waiting list fees
• Transport
• Membership fees
• Computer games and consoles.

The above list has been taken from:

• www.educationtaxrefund.gov.au and ato.gov.au

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