Education tax refund for Australian families

On 1 July 2008 the Government will introduce a 50 per cent Education Tax Refund on eligible educational expenses, helping working families meet the cost of educating their children through primary and secondary school.

Eligibility to claim the Education Tax Refund

  • Those entitled to Family Tax Benefit Part A (FTB PART A) who have children undertaking primary or secondary school studies for the relevant financial year.
  • Parents with school children undertaking primary or seconday school studies who would be an eligible child for FTB Part A purposes, but for the fact that child receives payments of allowances from: Youth Allowance; Disability Support Pension; ABSTUDY; the Veterans' Children Education Scheme; or the Military Rehabilitation and Compensation Act 2004.
  • School children underaking primary or secondary school studies, who are assessed as independent of their parents, or are in receipt of one of these payments or allowances are also eligible.
  • Families with registered home-schooled students can also claim the Education Tax Refund.

Eligible families can claim up to:
  • $750 for each child undertaking primary school studies (that is, a refund of up to $375 per child, per year) and
  • $1,500 for each child undertaking secondary school studies (that is, a refund of up to $750 per child, per year). These amounts will be indexed annually from 1 July 2009.

To be eligible for the Education Tax Refund families must receive Family Tax Benefit (Part A). Those eligible will receive the full value of the Education Tax Refund, regardless of their income tax liability.

Eligible expenses for the Education Tax Refund
Eligible Education Tax Refund expenses are items that support a child during school and improve the quality of education a child receives. Eligible education tax refund items will be defined as:
  • Laptops;
  • Home computer and associated costs;
  • Home internet connection;
  • Printers and paper;
  • Education software;
  • School text books (including prescribed textbooks, associated learning materials, study guides and stationery); and
  • Associated learning materials; study guides; stationery

Claiming the Education Tax Refund
  • Claims can be made in the 2009 income tax return
  • Parents and eligible independent students who do not lodge an income tax return can claim the refund through the Australian Taxtion office using the appropriate 2008-09 year form.

What to do now? In order to claim the Education Tax Refund families need to keep records of education expenses from 1 July 2008 onwards.

FREE fact sheet ==> Education Tax Refund Fact Sheet

(Source: Family Assistance Office)

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