FocusOn - Education tax refund

The education tax refund was introduced to assist families meet the cost of educating their children each year. This tax refund is available through your 2009 and future income tax returns for costs incurred from 1 July 2008. As the refund cannot be claimed until preparation of your 2009 income tax return record keeping is the priority for the time being.

Eligibility

Based on the budget announcement, all families who receive Family Tax Benefit (FTB) Part A will be eligible for the 50% tax refund for education expenses.

Eligibility for FTB Part A is income tested on a family’s adjusted taxable income. There is no assets test. You can receive FTB Part A if you have a dependent child under the age of 21, or have a dependent full-time student aged 21 to 24 years. The upper income limit in order to receive FTB Part A for the 2009 financial year is $100,801, for one child under 17. The upper limit increases depending on the number of dependant children you have and their ages.

Amount to be claimed

If you are eligible for FTB Part A, you can claim ‘eligible education expenses’ for up to:

	$750 for each child undertaking primary studies (providing for a refund of $375 per child, per year)
	$1,500 for each child undertaking secondary studies (providing for a refund of $750 per child, per year)

Eligible Education Expenses

Eligible education expenses are those items that support a child in their education.

Eligible items include the following:

	Laptop computers
	Home computers and associated costs
	Home internet connection
	Printers
	Education software, and
	School text books.

School fees are not eligible for the tax refund. Tuition fees or courses outside of school are also not eligible for the tax refund.

We have prepared a record keeping spreadsheet to assist you in claiming the education tax refund. The Education Tax Refund Register can be downloaded.

Published : 4 July 2008