Tax Time - New Education Expenses Tax Offset

26 Nov 12

Accountants Sydney

"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
"



< Back to Articles

Join Our Newsletter

Feel free to enter your details below to receive our email newsletter. We like to use this to keep you up to date with any news and changes in the taxation and accounting world.
  • *
  • *
MIM Accounting Pty Ltd © 2012
Public Professional Accountant - Registered Tax Agent
(02) 9825 1838
Cover of Excellence
Site By IM Advertising Sydney Web Designs. Powered by IM Advertising CMSSitemap