SCC Chartered Accountants

   

Parents with school kids should hold on to their receipts

From 1 July of this year some parents with school children are eligible to receive a tax refund for certain education related spending.

Raising children is expensive, in helping with this situation the Federal Government have introduced a new measure that provides parents with relief on the costs associated with providing children education tools and education resources.

How does it work?

Parents will be able to claim a 50% refund for every year for specific education expenses up to:

• $750 for each child undertaking primary studies (maximum refund of $375 per child, per year)
• $1,500 fro each child undertaking secondary studies (maximum refund of $750 per child, per year)

What items are covered?

Items eligible for the refund include:

• laptops;
• home computers and associated costs;
• home internet;
• printers;
• education software;
• trade tools for use at school;
• school texts;
• stationary.

Who is eligible?

Parents who are entitled to Family Tax Benefit (FTB) Part A for children in primary or secondary school.  To qualify for the refund all expenses and other criteria must relate to the same financial year.

How is the Education Tax Refund claimed?

Parents will be able to claim 50% of these expenses through their tax return.  For those people who are not required to lodge a tax return, a separate from will be available from Australian Taxation Office.

Example:

Peter and Christine have three children, Luke (aged 7) and Belle (aged 10) are in primary school and the oldest, James is in secondary school. Peter and Christine are receiving FTB Part A payments.

Through the Education Tax Refund, Peter and Christine are able to claim 50% of the $1,500 laptop computer they bought for James. This provides them with a $750 refund.

They also bought a less expensive laptop, a printer and a range of stationary items for the two youngest children the total value of $1,500 each. The Education Refund lets them claim a refund of $750, or $375 for each.