Education Tax Refund - What You Need To Know

What is the Education Tax Refund?

The Education Tax Refund was introduced in the 2008-09 financial year to "help eligible families and independent students meet the cost of primary and secondary school education". (According to the Australian Taxation Office).

This is great news, because as a travelling family, you will now be given a partial refund on items which you more than likely would have purchased anyway!

Whether you choose homeschooling or distance education you will inevitably find yourself spending money on educational resources. And if a partial refund is available, then all the better.

If, like me, the first question you have is, how much is it worth? I'll kindly answer that question staight away - to save you scanning madly down the page!

The maximum you can claim is 50% of eligible expenses up to:

• $750 for each eligible child in primary school - that is, a refund of up to $375
• $1,500 for each eligible child in secondary school - that is, a refund of up to $750

If your expenses exceed your refund limit for the year, any excess can go towards your following year’s refund claim, as long as you are still eligible.

The first year you can claim the ETR is for the 2008-09 year (1 July 2008 to 30 June 2009).

Am I Eligible?

You are eligible to claim an Education Tax Refund (ETR) for the period 1 July 2008 to 30 June 2009 if:

• you had eligible education expenses for a child, and
• the child was in primary or secondary school, and
• you received Family Tax Benefit (FTB) Part A for the child, or
• a payment was made for the child that stopped you from receiving FTB Part A for that child, or
• your child stopped full-time school during the year and received sufficient income to stop you receiving FTB Part A.

Do Homeschooling and Distance Education satisfy the eligibility criteria of "school"?

The short answer is YES.

According to the ATO,

A child or an independent student satisfies the schooling requirement for each six month period, commencing 1 July or 1 January, if they:

• are registered or enrolled in a primary or secondary school course provided at an educational institution such as a school or TAFE, (Distance education satisfies this criteria) or
• are registered or enrolled with the education authority of their state or territory as a home schooled student, (Obviously, homeschooling falls into this category) or
• are registered or enrolled in a course of study or instruction which the Minister administering the Student Assistance Act 1973 determines that the Education Tax Refund applies for, and
• attended the course of study or instruction, or received the home schooling, at least one day in a six-month period commencing from 1 July or 1 January.

What are Eligible Education Expenses?

According to the ATO, eligible education expenses are items that support a child’s primary or secondary school education.

They include the purchase, lease, hire or hire-purchase costs, repairs and running costs of:

• laptops, home computers and associated costs
• computer-related equipment such as printers, USB flash drives
• home internet connections, including the costs of establishing and maintaining them
• computer software for educational use, including word processing, spreadsheet, database and presentation software, internet filters and antivirus software
• school textbooks and other paper-based school learning material, including prescribed textbooks, associated learning materials, study guides and stationery, and
• prescribed trade tools - for example, tools required to complete a school-based apprenticeship.

NOTE: eligible expenses should be listed separately and receipts kept for the purposes of calculating and proving your claim.

Expenses that are NOT Eligible

A lot of the following types of expenses do not apply in the case of travel school. For instance, I'd be surprised if I saw a travelling family wearing school uniforms!

I have included these to give a more complete picture of the items which are considered 'not eligible'. They may also give you some ideas for times when you resume a regular school life.

Education expenses that are not eligible include:

• school fees
• school uniform expenses
• student attendance at school-based extra curricular activities such as excursions and camps
• tutoring costs
• sporting equipment
• musical instruments
• school subject levies - for example, payment for consumables for particular subjects such as woodwork, art or home science
• building levies
• library book fees
• school photos
• donations
• tuck shop expenses
• waiting list fees
• transport
• membership fees, and
• computer games and consoles.

How do I claim the Education Tax Refund (ETR)?

According to the ATO, if you are required to lodge a tax return you can claim your Education Tax Refund (ETR) at question T6 in the 'Tax offsets' section of your 2009 individual tax return.

If you are not required to lodge a tax return for 2008-09 you can claim the ETR on an Education Tax Refund for individuals 2009 claim form available from the Tax Office by:

• downloading from the Tax Office website at www.ato.gov.au
• phoning the Tax Office on 1300 720 092, or
• visiting a Tax Office shopfront.

You can lodge the ETR claim by:

• phoning 13 28 65 – available 24 hours a day 7 days a week, or
• by mail.

Disclaimer

Doesn't every piece of information these days include a requisite disclaimer? Well, this site is no different!

The information provided above is NOT all-inclusive or exhaustive. I have summarised the available information to provide simplified and relevant details for the travel schooler. Please be aware that this information does not cover all situations for every person.

For more comprehensive information, please visit the Australian Taxation Office.

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