Tax Time - New Education Expenses Tax Offset

26 Nov 12

"Get Ready, It  is tax time!

The Government has introduced a new refundable education expenses tax offset to enable eligible individuals to claim a 50% tax offset for certain education expenses incurred in respect of primary and secondary education.

The following education expenses can qualify for the tax offset:

• Computers
• Computer-related equipment
• Home Internet
• Computer Software
• School Stationary, Textbooks, etc
• Tools of Trade

Eligible taxpayers will be able to claim the following tax offset amount for the 2009 income year.

• A 50% tax offset for up to $750.00 of eligible education expenses incurred for each child attending primary school, i.e. $375.00 per child
• A 50% tax offset for up to $1,500.00 of eligible education expenses incurred for each child attending secondary school; i.e. $750.00 per child.

Eligibility Criteria:

The following three conditions must be satisfied an a  particular day during the year:

• FBT Requirement
  The Taxpayer has received (or is entitled to receive) Family Tax Benefit (FBT) part ‘A’ in respect of a child on that day. The eligible individual must be registered for FBT (A) before a claim on education expenses tax offset can be applied.
• Schooling Requirement
  A child must be enrolled in a primary or secondary school course at school or Tafe, at least one day in a six months period of the year and the child attends the course of studying or instruction or receives the home schooling.
• Eligible Education Expenses Requirement
  Eligible education expenses must be incurred by the taxpayer or their partner, on a day during the income year that the ‘FBT requirement’ and the ‘Schooling requirement’ have been satisfied.

The taxpayer must keep receipts for all eligible education expense in order to prove/substantiate the relevant expense has been incurred.

Where receipts/invoices are not maintained, tax offset claims are likely to be reduced/disallowed in the event of an ATO audit.

The following education-related expenses are NOT eligible for tax offset:

• School Fees
• School Uniform
• School Activities Fees
• Sport Equipment
• Musical Instruments
• School Photos
• Donations
• Transport Fees
• Computer games/Consoles

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