The Education Tax Refund in Australia

The federal budget of 2008-2009 announced Educational Tax Refund in Australia. In Australia families can claim tax refund for their children up to 50% for eligible education expenses. Its equal to the amount $750 for primary school children and $ 1500 for secondary school children. The mentioned amount can give tax offset of $375 and $750 respectively. Now its not any burden for the parents to bear the children education expenses. But they must be well aware of these schemes. Moreover some other expenses related to desktop computers, laptops, and textbooks, different education software and trade tools are allowable as well. Therefore you must keep the record of all such receipts so that you may claim later on.

Eligibility for ETR:

Those families that meet the income test are allowed to receive payments from Family Assistance Office. This is an additional tax benefit which is given by FAO. Here we are not going to discuss in detail the procedure and rules regarding to qualifying for FTB Part A. But here we are going to discuss it shortly for getting a little bit knowledge of it. Those families will receive this tax benefit whose income is less than a certain amount. During the year 2008-2009 this limit was imposed. According to this limit those families that earn $98514 and have less than 18 dependents are allowed to receive tax return. Besides if the income is $ 99962 and the dependents are more than 18 then again the tax benefit will be given to them. $ 3796 is another limit for each additional child in the family. In short if the family income is less than the above mentioned limit then you are not eligible for FTB part A and ETR.

Some Allowable Expenses:

Some expenses are allowable that you can claim by Federal government in Australia. But there are also so many other expenses that are not allowable. Let we discuss such expenses in brief.

Allowable expenses may include all those expenses that support a child during primary and secondary school and moreover such expenses improve quality of education. Such as all education software, laptops or computers including their repair and running cost, textbooks and associated material and some prescribed trade tools. Moreover you can claim internet connection fees that you pay every month. But remember that you will be in a position to claim them only at that time when you will have receipts of them. These are not all the expenses that you can claim but there are so many such expenses are there.

Now if we look at those expenses that are not allowable then we will find that these comprises of all non-educational expenses, non-educational software such as computer games, hardware maintenance for such purpose and tuition fee.

How to claim allowable expenses:

When the parents will complete the annual tax return then their children would be able to claim ETR.  If you using e-tax, there is a section for ETR, fill it but also keep the receipts with you as well.

Hence, after filing tax return you can claim all educational expenses for your child.

You can get more info in this link here:

Leave a Comment