Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

I would like to thank all senators who have taken part in the debate on the Tax Laws Amendment (Education Refund) Bill 2008. An important aspect of the government’s education revolution is assisting parents with the everyday costs of providing an education for their children. That is why the government has provided for a $4.4 billion investment in the education tax refund, as announced in this year’s budget.

The education tax refund is aimed at parents and other caregivers and consists of a refundable tax offset for 50 per cent of eligible education expenses for children undertaking primary and secondary school studies. Importantly, this bill delivers on the government’s election commitment to assist families with the costs of educating their children. 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 will provide a maximum refund of up to $750 per child per year. Not only does this refund apply to primary and secondary students attending school; it also applies to home-schooled students who are studying a primary or secondary course, provided that they are registered with their relevant state or territory.

There are a wide range of eligible educational expenses which can be claimed as part of the education tax refund. These include laptops, home computers and associated costs, printers, computer software, trade tools for use at school, school textbooks and stationery, as well as a home internet connection. These educational costs can be incurred by way of purchase, lease, hire or hire-purchase, which gives families choice in how they go about incurring the expenses. This will be particularly helpful for those families who cannot purchase a laptop or home computer outright, as they will have the opportunity to obtain these types of educational items by way of a lease or hire arrangement.

Parents and others entitled to family tax benefit part A and who have children undertaking primary or secondary studies will be eligible for the education tax refund. Eligibility for the education tax refund is also extended to those who would be eligible for family tax benefit part A in respect of a child but for the fact that the child, or they on the child’s behalf, is in receipt of other support payments, such as youth allowance or ABSTUDY living allowance. Students who are living independently from their parents may also be eligible for the education tax refund in respect of their own expenses.

The education tax refund will apply to eligible expenses incurred from 1 July 2008. So I would say to all eligible parents: if you have not already started doing so, please start keeping receipts for educational items so that you can claim the tax offset in the 2008-09 income tax return from 1 July 2009. As the education tax refund is a refundable tax offset, this means that even if you do not pay tax you will still be able to benefit from this offset. For those people in this situation who are not required to lodge a tax return, they will be able to claim the tax offset by lodging a separate form to be available from the Australian Taxation Office. The first claims for the education tax refund will be accepted following the end of the financial year, from 1 July 2009.

This bill implements the government’s election commitment. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.