According to Tax Office figures, only half of all eligible Australian families have lodged a claim for the education tax refund (ETR), leaving more than $500m in unclaimed benefits. As at 13 November 2009, only $488m of the projected $1.02bn cost for the ETR had been claimed in tax refunds.
The ETR provides eligible parents with refunds for eligible educational expenses of up to $375 per primary school student and $750 per secondary school student. Of the 794,720 ETR claims processed, 259,150 claims (32.6%) were for the maximum entitlement and 535,570 claims (67.4%) were for a proportion of the maximum entitlement. The average amount claimed for primary school students was $246.99 while the average for secondary school students is $495.73.
Back to school expenses that parents can claim include the cost of buying, establishing, repairing and maintaining any of the following items:
- school textbooks and other printed learning material, including prescribed textbooks, associated learning materials, study guides and stationery;
- prescribed trade tools for secondary school trade courses;
- laptop computers and home computers;
- computer-related equipment such as printers, USB flash drives, as well as disability aids to assist in the use of computer equipment for students with special needs;
- home internet connections; and
- computer software for educational use.
Families can claim the ETR if they have eligible education expenses and received Family Tax Benefit (FTB) Part A for the child that the expenses relate to.
Families are also eligible if they have children in primary or secondary school who would be eligible for FTB Part A purposes, but for the fact that the child receives certain payments or allowances, including:
- Youth Allowance;
- Disability Support Pension;
- ABSTUDY Living Allowance;
- the Veterans’ Children Education Scheme;
- Student Financial Supplement Scheme; and
- the scheme to provide education and training under s 258 of the Military Rehabilitation and Compensation Act 2004.
The Government reminded parents to keep their receipts so they can take advantage of the ETR. Taxpayers have until March-April 2010 to claim eligible education expenses for the 2009 school year, if they lodge their individual tax returns through a tax agent.
This article appeared in Thomson Reuters Weekly Tax Bulletin (22nd January 2010). Australia’s most comprehensive and informative tax news service, it covers, in clear terms, all tax and related developments from cases, new legislation, tax rulings and major announcements to detailed practitioner articles. To find out more, click here
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