Q1: How will the refund work?
If parents are eligible, they can claim the refund in their 2009 individual tax return or, for those not required to lodge an income tax return, through a stand-alone claim form.
For the period 1 July 2008 to 30 June 2009, the maximum they can claim is 50% of eligible expenses up to:
- $750 for each eligible student in primary school - that is, a refund of up to $375
- $1,500 for each eligible student in secondary school - that is, a refund of up to $750.
If their expenses exceed their refund limit for the year, any excess can go towards their following year's refund claim, as long as they are still eligible.
Eligible independent students undertaking primary or secondary school studies can also claim the Education Tax Refund.
The refund is a fully refundable tax offset that will be paid as part of their tax return. If they are not required to lodge a tax return, they will need to lodge a 2009 Education Tax Refund claim (NAT 72621) and their refund will be paid as a cheque or an electronic payment into their nominated bank account. From 1 July 2009, the claim can be downloaded from the Tax Office website.
Q2: Who is eligible?
- A person who is entitled to receive family tax benefit (FTB) Part A for a child undertaking primary or secondary school studies.
- A person with a child undertaking primary or secondary school studies but a payment is made for the child that stops the person from receiving FTB Part A for the child.
- Independent students in primary or secondary school.
Q3: What is an independent student?
An independent student for the purposes of the Education Tax Refund is a student who:
- undertakes full-time primary or secondary school studies
- is receiving payments under a prescribed educational scheme - for example, ABSTUDY Living Allowance or a social security pension or benefit such as Youth Allowance or payments under a program included in the programs known as labour market programs
- satisfies an independence requirement that is relevant to the amount of the payment
- is aged under 25
- is an Australian resident or a special category visa holder who resides in Australia, and
- doesn't have anyone else who is eligible for the Education Tax Refund for them.
Example
George is 20 years old. He lives alone and receives a government support payment. He returns to school to complete his higher school certificate and buys a laptop computer and internet connection to help in his studies. George is eligible to claim the Education Tax Refund for the cost of his computer and internet connection as he is an independent student.
Q4: Can claims be made for children who are studying at university/TAFE/ technical schools?
The Education Tax Refund can be claimed for students at TAFE/technical school if they are undertaking secondary school studies but not for trade or general courses. University costs cannot be claimed.
Q5. What is the schooling requirement?
A child satisfies the schooling requirement on every day in a six month period beginning on 1 July or 1 January if there is at least one day in that six month period on which the enrolled/registered child attends school.
Q6: What if a child stops full-time school during the year?
If a child stops full-time study part way though a financial year, parents may still be able to claim the Education Tax Refund for the part of the year that their child met the schooling requirement and where they met the other eligibility requirements.
Example
Katie’s daughter Asha completed full-time secondary school in December and has secured work for the remainder of the financial year that would earn her an income that exceeds the child income test limit for her to be an FTB child. Katie incurred $2,000 in eligible expenses in the final half year of Asha’s secondary schooling. Even though Asha’s income for the year is over the child income test limit and she only meets the schooling requirement for half of the financial year, Katie would still be entitled to claim a refund for the first half of the year. The maximum refund that she could claim is $375 (half of the full year refund of $750 for a child in secondary school).
Q7: If a child started school part way through the year, — can parents still claim the Education Tax Refund?
Yes. The parents can claim for the period their child met the schooling requirement.
Q8: If a child moves from primary to secondary school, what is the maximum amount that can be claimed?
The maximum secondary school limit of $750 for $1,500 of expenses can be claimed.
Q9 Do pre-school courses qualify as part of the primary school course of education?
As this can vary, parents need to contact their state or territory Department of Education to confirm if their child’s enrolment in pre-school means they are enrolled in primary school.
Q10: What are eligible education expenses?
Eligible education expenses include the purchase, lease, hire or hire-purchase costs of:
- laptop computers, home computers and associated costs, including repair and running costs of computer equipment
- computer-related equipment such as printers, USB flash drives, and disability aids to assist in the use of computer equipment for students with special needs
- home internet connections, including the costs of establishing and maintaining them
- computer software for educational use
- word processing, spreadsheet, database and presentation software, and internet filters and antivirus software
- school textbooks and other paper-based school learning material, including prescribed textbooks, associated learning materials, study guides and stationery – for example, pencils, pens, compasses and glue
- prescribed trade tools.
Q11: What education expenses are not eligible?
Expenses that are not eligible for the Education Tax Refund include:
- school fees
- school uniform expenses
- student attendance at school-based extra curricular activities such as excursions and camps
- tutoring costs
- musical instruments
- sporting equipment
- library book fees
- building levies
- school subject levies – for example, payment for consumables for particular subjects such as woodwork, art or home science
- school photos
- donations
- tuck shop expenses
- waiting list fees
- transport
- membership fees
- computer games and consoles.
An expense cannot be claimed to the extent that:
- it is tax deductible
- it is subject to another tax offset, or
- the student receives or is entitled to receive a reimbursement or payment under an Australian Government benefit, grant or subsidy.
Q12: If laptops and/or computer software are purchased by the parent and it is compulsory that these items remain at the school, are these items an eligible education expense?
Yes.
Q13: If a school leases or hires computers to parents, is this an eligible education expense?
Yes. The leasing or hiring of computers is an eligible education expense.
Q14: Are tools and equipment expenses for a student in a school-based apprenticeship eligible education expenses?
Yes, except for the amount the student receives or is entitled to receive as a reimbursement or payment of the expense under an Australian Government benefit, grant or subsidy.
Example
Albert’s son Joel is completing a carpentry apprenticeship as part of his secondary school curriculum and purchased trade tools during the year worth $2,000. As Joel is enrolled in an apprenticeship, he is eligible for a Commonwealth grant of $800 to assist with the purchase of trade tools. As Joel has received a grant worth $800 towards the purchase of his trade tools, Albert can claim an Education Tax Refund for the balance of that expenditure - that is, $1,200.
Q15: Can expenses be claimed for photocopying and printing facilities?
Yes, as long as there is an itemised receipt for these eligible costs.
Q16: Can parents claim for the cost of class sets or text book hire by schools?
Yes, this is an eligible education expense.
Q17: Is apportionment for educational and private use required?
No apportionment is necessary. If the eligible expense directly relates to the education of the student, the full amount of the expense can be claimed.
Q18: If a child is starting primary school, can their parents claim expenses incurred before the child starts school?
It will depend on when the expense is incurred. For the purposes of claiming the Education Tax Refund, eligible education expenses can only be claimed if they are incurred in a period when the child meets the schooling requirement.
Example
Alby first started primary school in January 2009. Alby’s parents purchased some educational software in November 2008, in preparation for him starting school the following year. Alby’s parents are not able to claim the software as an eligible education expense as the schooling requirement was not met at the time of the purchase, that is for the six month period beginning on 1 July.
Had Alby’s parents purchased the equipment in January 2009, before Alby started school, the software could qualify as an eligible education expense as the schooling requirement would be met for the six month period beginning on 1 January.
Q19: Do parents have to keep all of their eligible education expenses receipts?
Parents should keep records to help them or their tax agent prepare their tax return or their Education Tax Refund claim. They will also need receipts to help prove their claim if we ask them.
Q20: What is required on a school statement or receipt for parents to be able to claim the Education Tax Refund?
For the purposes of claiming the Education Tax Refund, eligible education expenses should be listed separately on a school statement or receipt. Receipts or statements stating class materials and services should be broken down to the components – for example, pens, photocopying, computer consumables etc. School levies and/or services, that do not have eligible education expenses itemised, are also not eligible education expenses.
Example
John has a son Mark whose school invoices, inclusive of school fees and levies. As school fees and levies are not eligible education expenses, the school should list these and other items separately on the receipt in order for John to be able to claim any eligible education expense, such as the cost of text books.
Q21: Will advice from a school that an amount has been paid in respect of eligible education expenses be sufficient proof for a claim of those expenses by a parent?
If the school fee or statement is issued as a lump sum with no apportionment of expenses, the school can advise of the amount that relates to specific expenses in another written notice, either at the time the fee is invoiced or at a later date. Schools should keep a record of how the apportionment was made to assist with any subsequent compliance reviews made in relation to individual claimants.
Q22: Do schools need to apportion fees when the school fee includes such things as textbooks or stationery?
School fees are not an eligible expense. If the school fee includes eligible items (such as textbooks or stationery) and parents can be advised of their cost, parents can claim that part of the school fee attributable to those eligible items. The cost of eligible items should be on the fee invoice, but can also be separately advised in writing by the school. The school should keep a record of how the apportionment was made to assist with any queries.
Q23: Can schools be questioned by the Tax Office as to how they determined whether specific expenses are eligible?
It is not the school’s responsibility to specify what is eligible and what is not. The onus is on the parent to identify what is an eligible education expense.
Q24: Where can parents obtain more information about the Education Tax Refund?
More information is available:
- at www.educationtaxrefund.gov.au
- in the following publications (available from 1 July 2009):
- TaxPack 2009
- Education Tax Refund claim and instructions for individuals 2009 (NAT 72621)
- from Tax Office shopfronts
- by phoning 13 28 61.
Last Modified: Thursday, 18 June 2009
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