FAQs and examples
Q: What school uniform items will I be eligible to claim in 2011/12?
Q: When and how do I claim school uniform items?
Q: What if my child is home-schooled or doing secondary school at TAFE?
Q: Can I claim for tertiary expenses?
Q: What if my child did not go to school for the whole year?
Q: Can I share the expense for an item between my children?
Q: Do I have to keep all of my eligible education expenses receipts?
Q: What if I am not required to lodge an income tax return — can I still claim the refund?
Q: Will my tax agent tell me I need to claim the ETR?
Q: I do not receive Family Tax Benefit Part A, am I still eligible?
Q: What school uniform items will I be eligible to claim in 2011/12?
A: School uniform items purchased from 1 July 2011 need to be distinctive and recognised by the school - but are not limited to items bearing a school crest. For example:
1. A public school has a policy which states that students should wear yellow shirts, blue hats, grey shorts or skirts and black leather shoes to identify the students as attending the school. However, while wearing these colours is strongly encouraged, it is not compulsory. An eligible individual whose child attends the school buys items which fit within this policy from a store unaffiliated with the school. None of the clothing items contain the name of the school or school crest. As the items, including shoes, are approved or recognised as part of a distinctive school outfit and fall under the policy, they would be eligible expenses. This applies irrespective of where the clothing was purchased or the fact the uniform was not mandatory.
2. A school has a dress code where students are required to be dressed in a neat and presentable fashion, but which does not indicate a more specific colour or style that the clothing should take. An eligible individual whose child attends the school buys clothes which they intend to wear to school. The items would not be eligible expenses. While the clothing meets the school’s dress code, they lack the sufficiently distinctive quality of a uniform, and could not identify the child as a student at the school.
Q: When and how do I claim school uniform items?
A: Start by keeping receipts for school uniform items purchased from 1 July 2011. Make your claim in next year’s tax return. If you don’t need to do a tax return you can claim on the Education Tax Refund for individuals claim form which is available from the Tax Office.
Q: What if my child is home-schooled or doing secondary school at TAFE?
A: You can still claim the ETR. An eligible child includes students who are home-schooled and those doing a secondary school level of education at an educational institution such as a TAFE, but does not include general TAFE courses.
Q: Can I claim for tertiary expenses?
A: No.
Q: What if my child did not go to school for the whole year?
A: Your child will be eligible if they have attended primary or secondary school or received home-schooling for at least one day in a six-month period, commencing 1 July or 1 January. Even if they have only attended for part of the year you can still claim for that period. This also applies to independent students.
Q: My children’s grandparents paid for their computer. Can the grandparents claim the ETR or can I claim for the computer?
A: No. The grandparents are not eligible as they do not receive Family Tax Benefit Part A for the children. You are unable to claim for the computer as you did not incur the expense. You can only claim for items which you have paid for yourself.
Q: My children use our home-based business computer. Can I still claim the cost of the computer and associated costs?
A: Yes, but only the amount that your business is not claiming as a tax deduction, or is not subject to another tax offset.
Q: How do I work out my expenses if my internet connection is bundled with my other utilities — for example phone?
A: To calculate your internet expenses, you will need to look at your statement from your internet provider. If you are still unsure, your provider may be able to give you details of your internet charges for each financial year — 1 July to 30 June.
Q: Can I share the expense for an item between my children?
A: Yes. You can share the expense provided all the school children have access to the item that has been purchased. For example, you can share the expense of a computer between all children provided they all have access to it.
Q: Do I have to keep all of my eligible education expenses receipts?
A: You need to keep records to help you or your tax agent prepare your tax return or claim. You will also need receipts to ensure that you are able to prove your claim for your expenses if you are asked to by the Tax Office. Eligible education expenses must be listed separately on invoices.
Q: What if I am not required to lodge an income tax return — can I still claim the refund?
A: Yes. If you do not have to lodge a tax return, you will need to use the Education tax refund for individuals 2011 (NAT 72621) form. Your refund will be paid as a cheque or an electronic payment into your nominated bank account.
Q: Can I claim the ETR in my tax return if my spouse received the Family Tax Benefit Part A entitlement?
A: No. You cannot claim the refund in your tax return if you did not get Family Tax Benefit Part A. The person who receives Family Tax Benefit Part A must be the one who claims the ETR.
Q: Will my tax agent tell me I need to claim the ETR?
A: Not necessarily. If you know you are eligible for the refund, tell your tax agent so they can claim on your behalf. You will need to show them your receipts for eligible education expenses.
Q: I do not receive Family Tax Benefit Part A, am I still eligible?
A: If one of the following payment types prevented you from receiving Family Tax Benefit Part A, then you are still eligible to receive the ETR:
- Youth Allowance
- Disability Support Pension
- ABSTUDY Living Allowance
- the Veterans’ Children Education Scheme
- Student Financial Supplement Scheme, and
- the scheme to provide education and training under s258 of the Military Rehabilitation and Compensation Act 2004.
Q: Am I an independent student?
A: An independent student for the purposes of the ETR is a student who:
- undertakes full-time primary or secondary school studies
- is receiving payments under a prescribed educational scheme, for example, ABSTUDY Living Allowance, a social security pension or benefit such as Youth Allowance, payments under a program included in the programs known as labour market programs, or receiving a disability support pension.
- satisfies an independence requirement that is relevant to the amount of the payment
- is under 25
- is an Australian resident or a special category visa holder who resides in Australia, and
- does not have anyone else who is eligible for the ETR for them.
A simple example of how the ETR works:
John and Louise have two children at school. Ben, 15, is in secondary school and Beth, 9, is in primary school. John and Louise buy a laptop computer for Ben which cost $1,200, and spend $200 on books and stationery for Beth. They spend $600 a year on their internet connection for the children. In total, the family spends $2,000 on eligible education expenses. The internet connection costs can be divided between the two children.
How much can they claim?
The maximum they can claim for Ben’s secondary education expenses is $1,588, and for Beth, it is $794 for her primary school expenses. Calculations on purchases so far:
| Child | Ben, aged 15 | Beth, aged 9 | Totals |
|---|---|---|---|
| Education Level | Secondary | Primary | |
| Maximum claimable amount | $1,588 | $794 | $2,382 |
| Maximum ETR | $794 | $397 | $1,191 |
| Receipts | $1200 (computer) PLUS $300 (half the internet costs) | $200 (textbooks & stationery) PLUS $300 (half the internet cost) | |
| Subtotal | $1,500 | $500 | $2,000 |
| Refund | $750 | $250 | $1000 |
What do they get back?
Their eligible expenses are $1,200 on Ben’s new computer, $200 on Beth’s textbooks and stationery and $600 a year on their internet connection. They can divide the internet expenses between the children, allocating $300 to Ben’s eligible expenses and $300 to Beth’s. As Louise is the recipient of Family Tax Benefit Part A, she is entitled to receive $1,000 back, as she and John have spent less than the maximum threshold for each of their children.
What happens if they spend more than the maximum amount?
Any remaining amount can be carried over to the end of the next financial year to be included in that year’s calculations (if they are still eligible).