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Education Tax Refund

Update

The Australian Government announced in the 2012 Budget that the Education Tax Refund (ETR) would be replaced by a new payment called the Schoolkids Bonus.

This new cash payment will help families with the costs of education.

Starting from 1 January 2013, this new payment will help 1.3 million Australian families with children at school pay for expenses such as uniforms, books, school excursions, stationery and other costs like music lessons and sports registration fees.

Eligible families will be paid the bonus automatically in January and July.

Each year, families will receive:

• $410 for each child in primary school (two instalments of $205) and
• $820 for each child in high school (two instalments of $410).

What does this mean for me?

As part of the transition to the new Schoolkids Bonus, the ETR for 2011-12 will be paid as a lump sum in June 2012.

All eligible families will receive the maximum ETR entitlement for 2011-12, without having to claim through their tax return.

Eligible families will automatically receive the payments into their bank account of:

• $409 for each child in primary school
• $818 for each child in secondary study.

If you do not receive a one-off payment in June, you can contact Centrelink to check whether you may be entitled to a payment for the 2011-12 financial year.

For more information about the Schoolkids Bonus go to fahcsia.gov.au

You can still make a claim for the ETR for 2010-11 and earlier years if you are eligible. Read below for more information.

If your family is eligible you can claim a 50% refund every year for eligible education expenses. From 1 July 2010 you can claim up to:

• $794 for each child engaged in primary school studies, with a maximum refundable tax offset of $397/child/year
• $1,588 for each child engaged in secondary school studies, with a maximum refundable tax offset of $794/child/year

What are eligible expenses?

• education software;

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

Who are eligible to claim?

The following parents are eligible:

• Those entitled to Family Tax Benefit (FTB) Part A in respect of children engaged in primary or secondary studies for the relevant financial year.
• Those with children engaged in primary or secondary studies where the children are eligible for FTB Part A purposes, but for the fact that the child receives certain payments or allowances (eg Youth Allowance, Disability Support Pension, ABSTUDY Living Allowance).

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