Parents across Australia
should keep their receipts for education expenses from
tomorrow to make the most of the benefits available
under the Rudd Government's $4.4 billion Education Tax
Refund.
The Education Tax Refund
will provide parents with much-needed help for education
expenses, with refunds of up to:
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.
That's why the Rudd
Government is delivering the Education Tax Refund - as a
part of the Government's $55 billion Working Families
Support Package designed to tip the scales back in
favour of working families.
It is also a central part of
the Rudd Government's Education Revolution aimed at
giving our kids the best possible start in life and
making Australia's workforce the best educated and
trained in the world.
By keeping their receipts,
eligible families will be able to claim a 50 per cent
refund every year for key education expenses up to:
-
$750 for each child
undertaking primary studies (maximum refund of
$375 per child, per year); and
-
$1,500 for each child
undertaking secondary studies (maximum refund of
$750 per child, per year).
For example, Sarah and
Michael have two children, Petra, who is in secondary
school and Jack, now in grade three. Through the
Education Tax Refund, Sarah and Michael are able to
claim 50 per cent of the cost of a $1,500 laptop
computer they bought for Petra, a refund of $750.
They will also be able to
claim Jack's education software and school textbooks up
to the value of $750, receiving a refund of up to $375.
Where a family has
educational costs in excess of the refund limit, these
costs can be carried over to the next financial year.
Eligible expenses for the
Education Tax Refund include:
-
laptops;
-
home computers and
associated costs;
-
home internet
connections;
-
printers;
-
education software;
-
trade tools for use at
school;
-
school text books; and
-
stationery.
Parents entitled to Family
Tax Benefit (FTB) Part A for children in primary or
secondary school for the relevant financial year are
eligible for the Education Tax Refund.
Parents are also eligible if
they have children in primary or secondary school who
would be eligible children for FTB Part A purposes, but
for the fact that the child receives certain payments or
allowances, for example:
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.
MACKAY
30 June 2008
