Get 50% Back on Education Expenses!
If you’ve already lodged your return, talk to your accountant about how you can make sure you don’t miss out on your claim and of course, always refer to the official source for any updates which you can find here..
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Education Tax Refund
If you’re eligible, you can claim the Education Tax Refund for eligible education spending. This means you could get 50% back on a range of primary and secondary school education expenses.
About the Education Tax Refund
The Education Tax Refund (ETR) helps with the cost of educating primary and secondary school children. It means eligible parents, carers, legal guardians and independent students could get 50% back on some education expenses. This includes items like computers, educational software, textbooks and stationery.
Most people are eligible for the ETR because they receive Family Tax Benefit (FTB) Part A. However, there are some payments that prevent you from receiving FTB Part A, but which still entitle you to receive the refund. You can also claim the refund if you are an independent student.
You can claim the ETR for children in primary and/or secondary school, or if you are an independent student. Remember to keep your receipts as they will help you calculate your entitlement and you may be required to produce them as proof of purchase. You can claim the ETR even if you are not required to lodge a tax return.
Am I eligible?
I care for a child:
You can claim the Education Tax Refund (ETR) if you had eligible education expenses during the financial year for a child who meets the schooling requirement, and:
- you received Family Tax Benefit (FTB) Part A for the child
or - a payment was made for the child which prevented you from receiving FTB Part A,
or - your child stopped full-time school during the year and received income over the cut-out amount which prevented you from receiving FTB Part A for the child.
Payments that prevent you from receiving FTB Part A, but which still entitle you to receive the ETR include:
- 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 s258 of the Military Rehabilitation and Compensation Act 2004.
You can claim the ETR even if you are not required to lodge a tax return.
I am an independent student:
You can claim the ETR if you had eligible education expenses during the financial year and 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 the scheme to provide education and training under section 258 of the Military Rehabilitation and Compensation Act 2004, or
- a disability support pension
and, you:
- were an independent person for the purpose of the payment
- met the schooling requirement
- were under 25 years of age
- 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), and
- lived in Australia.
You can claim the ETR even if you are not required to lodge a tax return.
What is the schooling requirement?
For the purposes of the ETR, in order to meet the schooling requirement a child or independent student must be:
- registered or enrolled in a primary or secondary school course provided at an educational institution such as a school or TAFE (secondary school study only)
or - registered or enrolled with the education authority of their state or territory as a home schooled student,
or - registered or enrolled in a course of study or instruction which the Minister administering the Student Assistance Act 1973 determines that the ETR applies for.
They also must have attended the course of study or instruction, or received home schooling for at least one day in a six-month period, commencing from 1 July or 1 January.
Even if a child only meets the schooling requirement for part of the year you can still claim for that period. This also applies to independent students.
What is Family Tax Benefit (FTB) Part A?
FTB Part A is designed to help with the cost of raising children. It is paid to a parent, guardian, carer (including foster carer), eligible grandparent or approved care organisation.
To be eligible for family tax benefit (FTB) Part A you must:
- have a dependent child aged under 21,
or - have a dependent full-time student aged 21 to 24,
and - have care of that child for 35 per cent of the time or more,
and - meet residential requirements,
and - have income under a certain amount (this amount varies depending on number and age of children).
A child or student cannot be a dependant if they:
- receive a pension or benefit
- receive a labour market program payment
- are aged 5 to 15, not studying full-time and their annual income is $12,742 or more
- are aged 16 to 24 and their annual income is $12,742 or more
- are aged 16 to 24 and receiving a prescribed education scheme payment such as ABSTUDY, or
- are aged 21 to 24 and not studying full-time.
If you are unsure if you received FTB Part A or are eligible to receive it you should contact the Family Assistance Office (FAO).
What can I claim?
What is an eligible education expense?
An eligible education expense is:
- incurred by an eligible person
- relates to a child or independent student’s education
- an item that is specified in the legislation as an eligible education expense, and
- incurred on a day when the child or independent student satisfied the schooling requirement.
You cannot claim the Education Tax Refund (ETR) for an expense if:
- it is an allowable tax deduction or subject to another tax offset,
or - you received or are entitled to receive payment or property as reimbursement or payment for the expense under a Commonwealth Government or legislative prescribed benefit, grant or subsidy.
What items can I claim?
Eligible expenses include the cost of buying, establishing, repairing and maintaining any of the following items:
- 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
- computer repairs
- home internet connections
- computer software for educational use
- school textbooks and other printed learning material, including prescribed textbooks, associated learning materials, study guides and stationery, and
- prescribed trade tools for secondary school trade courses.
What items can’t I claim?
- school fees
- school uniform expenses
- student attendance at school-based extra curricular activities such as excursions and camps
- tutoring costs
- sporting equipment
- musical instruments
- school subject levies – for example, payment for consumables for particular subjects such as woodwork, art or home science
- building levies
- library book fees
- school photos
- donations
- tuck shop expenses
- waiting list fees
- transport
- membership fees, and
- computer games and consoles.
Sharing eligible expenses:
Where an eligible education expenses has been incurred for more than one eligible child, the expense can be shared between the children. However, this is subject to all the children having access to the purchased item and you purchasing the item on a day when you satisfied the eligibility requirements for the ETR for each child. This is called pooling.
Example:
Ben and Natalie have twins in primary school. Ben purchased a computer worth $2,500 which both children can access. Ben can pool the expense of the computer between the twins and claim $780 in eligible expenses for each child, making a total of $1560 expenses that are claimed.
How much can I claim?
I care for a child full-time:
The Education Tax Refund (ETR) can be claimed each financial year for a child who meets the schooling requirement.
Maximum claimable amounts
The ETR entitles you to claim 50% of eligible education expenses up to the maximum claimable amounts. For the 2009 -2010 income year the amounts are:
- $780 for each primary school child – that’s a maximum refund of $390 for each primary school child you have, and
- $1,558 for each secondary school child – that’s a maximum refund of $779 for each secondary school child.
If you care for a child fulltime and are eligible to claim the ETR, you are entitled to claim the full maximum claimable amounts for each of your children who meet the schooling requirement.
I share the care of a child:
If you’re eligible, you can claim the ETR each financial year for children in your care who meet the schooling requirement.
The ETR entitles you to claim 50% of eligible education expenses up to the maximum claimable amounts. For the 2009 -2010 income year the amounts are:
- $780 for each primary school child – that’s a maximum refund of $390 for each primary school child you have, and
- $1,558 for each secondary school child – that’s a maximum refund of $779 for each secondary school child.
If you share care of a child, the amount you can claim under the ETR depends on the shared care percentage you have for Family Tax Benefit (FTB) Part A for that child.
If you share the care of a child with a person who is not your current partner and a payment was made for that child that prevented you receiving FTB Part A, you will need to calculate your ETR based on the percentage of nights during the year that the child was in your care.
An ETR calculator is available to help you calculate your refund. You will also find some examples in the FAQ’s and examples.
I am an independent student:
If you’re eligible, you can claim the ETR for each financial year that you meet the schooling requirement.
For the 2009 – 2010 income year you can claim up to $1,558 of your eligible education expenses. This means that the maximum refund you can claim is limited to $779.
Rolling over excess eligible expenses:
If you spend over the maximum claimable amount in one financial year you can claim the excess eligible education expenses the following year. Eligible expenses that are not claimed within two financial years are lost and cannot be claimed in later years.
Example:
Lachlan is in Year 10 and during the 2009 – 2010 income year his parents purchased a computer, a printer and educational software for his study totalling $2,000. Lachlan also attended school the year before so he satisfies the schooling requirement for the whole of the financial year.
As Lachlan’s father Robert receives FTB Part A he is eligible to make a claim for the whole of the income year. To determine his excess eligible education expenses for the current year Robert halves the eligible education expenses ($1000) and compares the amount to the refund limit he can claim ($779 for a secondary school student ). In this situation, there is an excess of $221. Robert would double the excess ($442) to restore it to the original expense value.
Assuming Robert and Lachlan still meet the eligibility and schooling requirements for the ETR in the following income year, Robert can include the $442 of expenses in the following year when calculating his refund entitlement for that year
How do I claim?
If you are eligible for the Education Tax Refund (ETR) because you receive Family Tax Benefit (FTB) Part A, please note that only the recipient of the FTB Part A payment can claim the refund. For example, you cannot claim the ETR in your tax return if it is your spouse who receives FTB Part A.
If you need to lodge a 2010 Tax Return:
If you are required to lodge a tax return, you must claim the ETR at item T6 in your 2010 individual tax return.
If you do not need to lodge a 2010 Tax Return:
If you are not required to lodge a tax return for 2009-10 you can claim the ETR on the Education Tax Refund for individuals 2010 claim available from the Tax Office from 1 July 2010 by:
- visiting the Tax Office website by clicking here
- phoning the Tax Office publications distribution service
on 1300 720 092, or - visiting a Tax Office shopfront.
You can lodge your completed ETR claim by:
- phoning 13 28 65 – available 24 hours a day 7 days a week
from 1 July 2010, or - by mail.
You can either receive your refund as an electronic payment into your bank account or as a cheque.
Lodging through a tax agent:
If you lodge your tax return through a tax agent, ask them to claim on your behalf. You will need to show your tax agent the receipts for eligible education expenses.
FAQ’s and Examples:
Click here to go to the Tax Office website where you will find frequently asked questions and examples which will help you work out your eligibility and calculate your entitlement. To return to this site use the back button.
Source: http://www.educationtaxrefund.gov.au/home/default.asp?sid=42
Information printed in this article is current from: October 2010
How do you know if it’s time to refinance or consolidate your loans? Let me ask you another question. When is it a good time to put money back in your pocket? EVERY YEAR you should take a home loan health check to find out if the loan you have is still saving you money. A lot can happen in a year, life circumstances can change, you may have taken on extra debts and rates may have moved substantially so you owe it to yourself and your cash flow to check your home loan and debt situation every year.
What reasons have other people like you, refinanced for?
Every client at Assured is unique, just like you. The reasons to refinance or consolidate are unique also. You may be looking to;
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- Getting cash out of the equity in your home loan for whatever reason you feel is needed.
- Roll all your payments into one so you have one convenient payment and interest rate.
