THE EDUCATION TAX REFUND
A PDF version of this news item is available here.
Are you eligible?
If you had eligible education expenses for a child’s primary or secondary education during the income year 1 July 2008 – 30 June 2009, you can claim an education tax refund of up to 50% of those expenses if any of the following circumstances apply:
- You received family tax benefit (FTB) Part A for the child
- A payment was made for the child that stopped you from receiving FTB Part A
- The child stopped full-time school during the year and received income over the cut-out amount, which stopped you from receiving FTB Part A.
Payment types that can stop you from receiving FTB Part A include:
- Social security pension or benefit – for example Youth Allowance
- Labour market program payment
- Prescribed educational scheme – for example ABSTUDY living allowance.
What if you are an independent student?
If you are an independent student, you can claim the refund if you had eligible education expenses during the income year and all of the following apply:
- You received a social security pension or benefit, a labour market program payment or a prescribed educational scheme payment including:
- Youth allowance
- ABSTUDY Living Allowance
- Veterans Children Education scheme and payments under Military Rehabilitation and Compensation Act 2004
- A disability support pension
- You were an independent person for the purpose of the payment
- You attended secondary school
- You were under 25 years of age
- You were an Australian resident (within the meaning of the Social Security Act 1991) or a special category visa holder (within the meaning of the Migration Act 1958)
- You lived in Australia
You do not need to be eligible for the entire year. You can claim the refund for any periods that you were eligible.
What education expenses can you claim?
You can claim the costs of buying, establishing, repairing and maintaining any of the following items:
- Laptops and home computers
- Computer-related equipment such as printers, USB flash drives, disability computer equipment aids for students with special needs
- Home internet connections
- Computer software for educational use including word processing, spreadsheet, database, and presentation software, internet filters and antivirus software
- School textbooks and other paper based learning material including prescribed textbooks, associated learning materials, study guides and stationery
- Prescribed trade tools
You cannot claim for:
- School fees
- School uniform expenses
- Student attendance at school-based extracurricular activities such as excursions
- Tutoring costs
- Musical instruments
- Sporting equipment
- School subject levies
- Computer games and consoles
- Building levies
- Library book fees
- School photos
- Donations
- Tuck shop expenses
- Transport
- Membership fees
How much can you claim?
If you have full care of a child you can claim 50% of eligible expenses up to:
- $750 for each eligible child in primary school - that is, a refund of up to $375
- $1500 for each eligible child in secondary school – that is, a refund of up to $750
If your expenses exceed your refund limit for the year, any excess can go towards your following year’s refund claim as long as you are still eligible.
If you have shared care of a child, use one of the following methods to work out your refund:
- If you received FTB Part A, use the same shared care percentage you get for FTB Part A.
- If you did not receive FTB Part A because you or the child received a payment, work out the percentage of nights during the year that the child was in your care.
If you are an independent student, you can claim up to $1500 of your expenses. This means the maximum amount you will receive is $750 if you undertook secondary school studies.
Remember to keep your receipts for items you purchased from 1 July 2008 – 30 June 2009. This will help you work out what you are entitled to claim and any excess expenses.
If you have any queries in regards to the information presented here, or on any other matter, please contact Platinum Accounting & Taxation Pty Ltd on:
National: 1300 794 940
Local Call: 03 9746 6479
Email:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
IMPORTANT DISCLAIMER - General advice warning: This newsletter does not constitute advice. Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas. This newsletter is issued as a helpful guide to clients and for their private information. It should be regarded as confidential and not be made available to any person without our prior approval.
Liability limited by a scheme approved under professional standards legislation.
|
