Laurie Ferguson (Reid, Australian Labor Party, Parliamentary Secretary for Multicultural Affairs and Settlement Services) Share this | Hansard source

I would like to thank all those members who have taken part in the debate on the Tax Laws Amendment (Education Refund) Bill 2008. The measures contained in this bill honour the government’s election commitment to assist families with the costs of education by offering them a refundable tax offset for 50 per cent of certain education expenses for children undertaking primary and secondary studies. From 1 July 2008, eligible parents and guardians will be able to claim a 50 per cent refund each year on up to $750 of eligible education expenses for each child undertaking primary studies. This will provide a maximum refund of up to $375 per child per year. For children undertaking secondary studies, families will be able to claim a 50 per cent refund on up to $1,500 of education expenses per child. This of course will provide a maximum refund of up to $750 per child per year.

The education tax refund can be claimed on certain costs of education, which may include: the purchase, lease, hire or hire-purchase costs of laptops, home computers, printers and computer software; trade tools for use at school; and school text books and stationery. The expenses associated with establishing and maintaining a home internet connection are also eligible for the offset. Parents and others entitled to family tax benefit part A who have children undertaking primary or secondary studies will be eligible for the education tax refund. In addition those who would be eligible for family tax benefit A in respect of a child but for the fact that the child or they on the child’s behalf are in receipt of other payments such as youth allowance are also eligible for the education tax refund. Students who are living independently from their parents may also be eligible for the education tax refund in respect of their own expenses.

Eligible parents and guardians will be able to claim the tax offset through their tax return at the end of the financial year. For those who are not required to lodge a tax return, a separate form will be available from the Australian Taxation Office. Therefore I encourage those eligible for the education tax refund to start keeping their receipts to enable them to claim the tax offset, with the first claims being accepted from 1 July 2009. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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