Kids heading back to School? Keep your receipts for the Education Tax Refund

With a new school year getting under way, we remind parents to make sure they keep their receipts to make the most of the Government's New Education Tax Refund.

The Education Tax Refund will provide some much-needed relief to help families meet the costs of education, with refunds of up to:

  • $375 per primary school student; and
  • $750 per secondary school student.

All families with school children who receive Family Tax Benefit Part A will be eligible for the Education Tax Refund, which will be paid to families from 1 July 2009.

Provided parents keep their receipts, the Education Tax Refund will apply to some of the most common back-to-school items, including:

  • laptops;
  • home computers and associated costs;
  • home internet connections;
  • printers;
  • education software;
  • trade tools for use at school;
  • school text books; and
  • stationery.

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 the limits described above.

Therefore, for each primary school student you can claim up to $750 in education expenses giving you a refund of $375. For each secondary school student you can claim up to $1,500 in education expenses giving you a refund of $750.

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.

Who is eligible?

Parents entitled to Family Tax Benefit 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 Family Tax Benefit 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 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 to be lodged with the Australian Taxation Office.

Should you have any queries in regards to the tax bonuses, please contact us.