Education Tax Refund for Approved Care Organisations

Are you associated with an Approved Care Organisation?

At a glance: Approved Care Organisations (ACOs) are entitled to claim the education tax offset for eligible education expenses that have been incurred on primary or secondary school children in their care.  Approved care organisations (ACOs) can claim the education tax refund for eligible education expenses that have been incurred for each child in primary or secondary school in their care. To claim the Education Tax Refund, ACOs must be entitled to receive family tax benefit part A for primary or secondary school children in their care. Eligible families and ACO's can claim a refund of up to 50% of eligible expenses with a maximum of $750 [a refund of up to $375] for primary school students and $1,500 [a refund of up to $750] for students in secondary school.

Expenses that are eligible for the Education Tax Refund include:

- Laptops, home computers and associated costs, - Internet connections, - Stationary and text books

Eligible education expenses do not include expenditure on school fees, school uniforms and school excursions.

Any excess in eligible education expenses above the limits can be carried forward to the following year, up to the maximum of one year, on the condition that the children still meet the eligibility requirements in the following year. Receipts or records of any expenditure must be maintained to substantiate any claims for the Education Tax Refund.

For more information please click here and visit http://www.ato.gov.au.

Remember: You may be entitled to claim a refund of half the eligible expenditure incurred on the education of a child in your residential care, subject to limits. So you should be aware of the Education Tax Refund. Contact us if you require any clarification or advice.

Luxury Car Tax Refunds

Are you a primary producer or tourist operator?

At a glance: The Australian Taxation Office has announced that most primary producers and tourist operators can claim refunds of the increase in Luxury Car Tax (LCT) on eligible cars.

You should consider whether you are eligible to claim the LCT refund or contact us if you require any clarification or advice.

The Luxury Car Tax (LCT) is a levy imposed on vehicles with a GST inclusive price exceeding the car depreciation limit.

For the 2008/09 financial year, the car depreciation limit is $57,180.

The LCT for the 2008/09 financial year is 33%, up from 25% in the 2007/08 financial year [Click here for more information].

From July 1, 2008 most primary producers and tourist operators will be able to claim refunds relating to the increase in LTC on certain luxury cars.

The maximum claimable refunds are as follows: a. Primary producers can claim a refund of up to $3,000 for one eligible car in a financial year; and b. Tourism operators can claim a refund of up to $3,000 for each eligible car in a financial year.

Eligible taxpayers can claim the LCT refund by completing the form Application for luxury car tax refund - for primary producers and tourism operators.

For more information on the LCT refund, click here and visit the ATO website at http://www.ato.gov.au.

Remember to check if you are eligible to claim refunds of the increase in Luxury Car Tax.

Are You Eligible For The HECS-HELP Benefit?

Are you a recent graduate with a HELP debt?

At a glance: The Australian Taxation Office has provided details in relation to the proposed HECS-HELP benefit for eligible graduates and education teachers.

You should consider whether you are eligible for the HECS-HELP benefit or contact us if you require any clarification or advice.

 The proposed HECS-HELP benefit is available to eligible maths or science graduates or early childhood education teachers who have a debt under the Higher Education Loan Programme (HELP).

The HECS-HELP benefit aims to reduce the eligible taxpayer's:

 a. Compulsory HELP repayment included on their notice of assessment; or b. Accumulated HELP debt if they are an early childhood education teacher who does not have to make a compulsory HELP repayment.

To be eligible, taxpayers must meet the eligibility requirements relating to their:

 a. Course of study; b. Occupation; c. Work location (for early childhood education teachers only), and d. HELP debt status.

The maximum annual benefit has been set at $1,500 for maths and science graduates and $1,600 for early childhood education teachers. The benefit amount, which will be indexed annually, also depends on the number of weeks you were employed in an eligible occupation and location.

For more information on the requirements, click here and visit the ATO website at http://www.ato.gov.au.