Coalition Promises to Expand Education Tax Refund

The Federal Coalition has promised, if elected, to expand the Education Tax refund. For primary students, it will increase the rebate from the current $390 to up to $500 per year per child in primary school. Eligible parents will be able to claim a 50% rebate for up to $1,000 of eligible education-related expenses for each child in primary school

For secondary school students, the Coalition says it will increase the rebate from the current $779 to up to $1,000 per year per child. Eligible parents will be able to claim a 50% rebate for up to $2,000 of education-related expenses for each child in secondary school.

The Coalition also proposes to expand the types of expenses eligible for the rebate. Under the Coalition’s proposals, eligible expenses would include:
  • Laptops
  • Home computers and associated costs
  • Home internet connection
  • Printers
  • Education software
  • School text books
  • School stationary
  • Uniforms
  • Government and non-government school fees
  • Special education costs for children with disabilities, like dyslexia
  • Camps and excursions
  • Extra-curricular school activities, such as music, sports, dance and drama lessons
  • Tutoring costs
  • Musical instruments
  • Sporting fees and equipment
  • School photos.
Subject to the passage of legislation, the expanded rebate would apply for all eligible expenses incurred from 1 January 2011.

The rebate would be able to be claimed by parents, guardians or carers responsible for the payment of education costs for children. It would be claimed through the lodgment of a tax return. The Coalition says that, for those people who have little or no taxable income, the full amount would be refunded through a yearly tax return. The full rebate will be available to all recipients of Family Tax Benefit A. Independent students who meet the existing guidelines will also be eligible for the increased amounts.

Copyright 2014. My Tax Zone.