Angelo Sangiorgi Tax Agent Caroline Springs

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Education Tax Refund

Author: Angelo

You could be eligible to claim 50% refund for your children education expenses for your 2010 tax return

For the period 1 July 2009 to 30 June 2010 the maximum you can claim for a child are 50% of eligible expenses up to;

$780 for each eligible child in primary school - that is, a refund of up to

$390

$1,558 for each eligible child in secondary school - that is, a refund of up to $779

Eligibility rules;

you had eligible education expenses for a child,

and

the child was in primary or secondary school, and

you received Family Tax Benefit (FTB) Part A for the child, or

a payment was made for the child that stopped you from receiving FTB Part A for that child, or

your child stopped full-time school during the year and received sufficient income to stop you receiving FTB Part A.

independents students are also eligible to claim Education Tax Refund

I am an independent student

You can claim the ETR if you had eligible education expenses during the financial year and you:

received a social security pension or benefit, a labour market program payment or a prescribed educational scheme payment including:

Youth Allowance

ABSTUDY Living Allowance

Veterans’ Children Education Scheme and payments under the scheme to

provide education and training under section 258 of the Military Rehabilitation and Compensation Act 2004, or

a disability support pension

and, you:

were an independent person for the purpose of the payment were under 25 years of age

were an Australian resident (within the meaning of the Social Security Act 1991) or a special category visa holder (within the meaning of the Migration Act 1958), and

lived in Australia.

NOTE: examples of where you CAN claim education expenses

laptops,home computers and associated costs

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, including the costs of establishing and maintaining them

computer software for educational use, including word processing, spreadsheet, database and presentation software, internet filters and antivirus software

school textbooks and other paper-based school learning material, including prescribed textbooks, associated learning materials, study guides and stationery, and

prescribed trade tools - for example, tools required to complete a school-based apprenticeship.

NOTE: examples of where you CANNOT claim education expenses

school fees

school uniform expenses

student attendance at school-based extra curricular activities such as excursions and camps

tutoring costs

sporting equipment

musical instruments

school subject levies - for example, payment for consumables for particular subjects such as woodwork, art or home science

building levies

library book fees

school photos

donations

tuck shop expenses

waiting list fees

transport

membership fees, and

computer games and consoles.

Eligible expenses that have been incurred by a parent or guardian with more than one child with an ETR entitlement can be pooled and claimed against the children’s combined ETR entitlement, provided that the children all have access to the purchased items.

Education expenses in excess of what can be claimed in a financial year (that is, expenses over $1,558 per annum for a secondary school student or $780 for a primary school student) are able to be carried over in the following financial year.

NOTE:

- Eligible expenses that are not claimed within two financial years are lost and cannot be claimed in later years.

- The ETR can not be claimed for educational expenses if a tax deduction is allowed or a Commonwealth Government payment/subsidy is payable in respect of that expense.

The refund is fully refundable tax offset that is offset against any tax liability you have.

For those who are not required to complete an income tax return, a separate form will be available from 1 July 2010 to allow the refund to be claimed for the 2009-2010 financial year 2010 Education Tax Refund Claim (NAT 72621) which will be posted on the website or you can ask for a copy.

The refund will be paid as a cheque or an electronic payment if you nominate a specific bank account.

Please keep a record of all relevant receipts to verify your claim when preparing your tax return.

**if not sure please contact me for further details**

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