Keep Your Receipts!! Education Tax Refund

Parents across Australia should keep their receipts for education expenses from tomorrow to make the most of the benefits available under the Rudd Government's $4.4 billion Education Tax Refund.

The Education Tax Refund will provide parents with much-needed help for education expenses, with refunds of up to:

• $375 per primary school student; and

• $750 per secondary school student.

Parents bringing up the next generation of Australians are doing perhaps the most important job in Australia.

But it can also be an expensive job, with education expenses adding to financial pressures at a time when many family budgets are already stretched by high petrol, grocery and mortgage costs after eight interest rate rises in three years.

That's why the Rudd Government is delivering the Education Tax Refund - as a part of the Government's $55 billion Working Families Support Package designed to tip the scales back in favour of working families.

It is also a central part of the Rudd Government's Education Revolution aimed at giving our kids the best possible start in life and making Australia's workforce the best educated and trained in the world.

How much can you claim?

By keeping their receipts, eligible families will be able to claim a 50 per cent refund every year for key education expenses up to:

• $750 for each child undertaking primary studies (maximum refund of $375 per child, per year); and

• $1,500 for each child undertaking secondary studies (maximum refund of $750 per child, per year).

For example, Sarah and Michael have two children, Petra, who is in secondary school and Jack, now in grade three. Through the Education Tax Refund, Sarah and Michael are able to claim 50 per cent of the cost of a $1,500 laptop computer they bought for Petra, a refund of $750.

They will also be able to claim Jack's education software and school textbooks up to the value of $750, receiving a refund of up to $375.

Where a family has educational costs in excess of the refund limit, these costs can be carried over to the next financial year.

What items are covered?

Eligible expenses for the Education Tax Refund include:

• laptops;

• home computers and associated costs;

• home internet connections;

• printers;

• education software;

• trade tools for use at school;

• school text books; and

• stationery.

Who is eligible?

Parents entitled to Family Tax Benefit (FTB) Part A for children in primary or secondary school for the relevant financial year are eligible for the Education Tax Refund.

Parents are also eligible if they have children in primary or secondary school who would be eligible children for FTB Part A purposes, but for the fact that the child receives certain payments or allowances, for example:

• Youth Allowance;

• Disability Support Pension; and

• ABSTUDY Living Allowance.

How do you claim the Education Tax Refund?

Parents will then be able to claim 50 per cent of these expenses through their tax return at the end of the financial year. For those who are not required to complete an income tax return, a separate form will be available from the Australian Taxation Office.

MACKAY
30 June 2008

Top of page