Parents across Australia should keep their receipts for education expenses.  The Education Tax Refund started on 1 July, 2008 and provides parents with much-needed help for education expenses.  For the 2010 - 2011 income year, the maximum Education Tax Refunds are:

• $397 per primary school student; and

• $794 per secondary school student.

Parents bringing up the next generation of Australians are doing perhaps the most important job in Australia. But it can also be an expensive job, with education expenses adding to financial pressures at a time when many family budgets are already stretched by high petrol, grocery and mortgage costs after eight interest rate rises in three years.

Education expenses that parents can claim include the cost of buying, establishing, repairing and maintaining any of the following items:

• school textbooks and other printed learning material, including prescribed textbooks, associated learning materials, study guides and stationery;
• prescribed trade tools for secondary school trade courses;
• laptop computers and home computers;
• computer-related equipment such as printers, USB flash drives, as well as disability aids to assist in the use of computer equipment for students with special needs;
• home internet connections; and
• computer software for educational use
• School uniform expenses will only be claimable from 1 July 2011 in the 2011-12 financial year.

Where a family has educational costs in excess of the refund limit, these costs can be carried over to the next financial year.

Who is eligible?

Families can claim the ETR if they have eligible education expenses and received Family Tax Benefit (FTB) Part A for the child that the expenses relate to. Families are also eligible if they have children in primary or secondary school who would be eligible for FTB Part A purposes, but for the fact that the child receives certain payments or allowances. (Check the ATO documentation or with your tax agent to ensure eligibility).

How do you claim the Education Tax Refund?

Parents will then be able to claim 50 per cent of these expenses through their tax return at the end of the financial year. For those who are not required to complete an income tax return, a separate form will be available from the Australian Taxation Office.

For more information about the Education Tax Refund visit: www.educationtaxrefund.gov.au

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