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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