Education Tax Refund for Approved Care Organisations

The Australian Tax Office (ATO) has announced a new education tax refund for approved care organisations (ACOs). The new tax offset means ACOs can claim for eligible education expenses they incur for each child in their residential care who is in primary or secondary school.

An ACO is entitled to receive Family tax benefit Part A for a child in primary or secondary school, it can claim up to a 50% refund on eligible education expenses it incurs for the child.

The amount is 50% of eligible education expenses incurred for the period 1 July 2008 to 30 June 2009, up to:

– $750 for each eligible child in primary school – that is, a refund of up to $375
– $1,500 for each eligible child in secondary school – that is, a refund up to $750.

Organisations can claim for eligible education expenses such as internet connections, computers, stationery and text books, but it cannot claim for school fees, school uniforms or school excursions.

If an ACO’s eligible education expenses exceed the maximum limit, any excess can be carried forward to the following year, for one year only. The excess can be included in the following year’s claim as long as the ACO and the children still meet the eligibility requirements.

The first claim can be made for expenses incurred from 1 July 2008 to 30 June 2009. This claim can be made from 1 July 2009.

An ACO needs to keep records to help the organisation or its tax agent prepare the 2009 education tax refund claim. The organisation will also need receipts in case the ATO asks the organisation to prove the information provided on the claim.

For more information, see Education tax refund or phone 1300 130 248 between 8.00am and 6.00pm, Monday to Friday.

If your organisation wishes to claim the education tax refund, the Education tax refund for approved care organisations claim 2009 (NAT 72703) should be used. It is available from 1 July 2009. Go to www.ato.gov.au