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.