KeyPlay Business Solutions

Education Tax Refund (ETR)

Do you have school-aged children?

As any parent knows, the essential business of educating our children can be a very costly one! Textbooks, computers, stationary, printers, internet connections... the list goes on and on, and these costs can create a significant dent in your bank account.

Thankfully, the government has created a new scheme to help ease the burden. Their answer is the ‘Education Tax Refund' which offers eligible parents or independent students who are currently studying at a primary or secondary level a 50% tax refund on eligible expenses.

How does this work?

From 1 July 2008 to 30 June 2009 you can claim a 50% tax refund on eligible expenses up to a certain monetary limit;

• $750 for each eligible child in primary school (refund of up to $375)

• $1,500 for each eligible child in secondary school (refund of up to $750)

If your eligible education expenses exceed the monetary limit for the tax deduction, any excess can be carried over into the next financial year! (As long as you still meet the requirements, and they can be carried over for one year only)

The refund is claimed in your 2008/2009 taxation return, or if you are not required to complete an income tax return, you can complete a form made available through the Australian Taxation Office to have the Education Tax Refund refunded to you.

What can I claim?

• Computers - laptops, home computers & associated costs

• Computer related equipment

• Internet connections

• Computer software for educational use

• School textbooks

• Stationary

• Prescribed trade tools

Unfortunately expenses such as schools fees, school uniforms, excursion costs, tutoring costs etc. are exempt. If you have any questions on whether an educational expense is eligible or not, please contact our office on (03) 5332 8855.

Am I eligible?

Any parent that is entitled to Family Tax Benefit (FTB) Part A for a school aged child is eligible for the Education Tax Refund. If you would be eligible for FTB, except for the fact that your child receives payments such as Youth Allowance, Disability Support Pension, ABSTUDY etc. You will still be eligible for the ETR.

Independent students may also be eligible if they are undertaking full-time secondary school studies.

What evidence is required?

Please ensure that you keep all receipts in relation to any eligible education expenses.