Private ruling: Education tax refund
Published: March 2012
Ruling period: Year ending 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to claim the education tax refund for eligible expenses incurred prior to the term your child starts primary school? | A1: No.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are an Australian resident. Your child currently attends a school which has both a preschool and a primary school on the same site. The school operates four student intakes each year from the preschool, each intake commencing at the start of each term. In the term before starting school, the children spend a half day each week for three weeks transitioning to primary school. During this transition time your child will spend time in their primary classroom with their primary teacher. They will undertake activities such as painting, listening to stories and getting to know their teacher and fellow students. There is no primary curriculum taught during these transition days. Your child will undertake the transition days during June 2012. Your child's first day of primary school will be in July 2012. Your child is required to wear a school uniform for their first day of primary school. Due to the large demand for school uniforms, you are likely to incur the uniform costs during the 2011-12 financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 61-610. | Income Tax Assessment Act 1997 Section 61-630. | A New Tax System (Goods and Services Tax) Act 1999 Section 195-1 .

Reasons for decision: Summary: Section 61-610 of the Income Tax Assessment Act 1997 (ITAA 1997) outlines the requirements that must be satisfied in order to claim the education tax refund (ETR). You are entitled to claim the ETR if: § You are entitled to family tax benefit (part A) for the student on a day in the income year, and § the student satisfies the schooling requirement of the ETR on that day, and § an eligible education expense is incurred on that day. Section 61-630 of the ITAA 1997 states that in order to meet the schooling requirement of the ETR, a student must be enrolled or registered in a course of study or instruction that is a primary or secondary course within the meaning of the GST Act. The GST Act defines a primary course as a course of study or instruction that is delivered: § in accordance with a primary curriculum recognised by the Education Department of the State or Territory, and § by a school that is recognised as a primary school under the law of the State or Territory. A child satisfies the schooling requirements on every day in a six month period beginning on 1 July or 1 January if there is at least one day in that six month period on which they attended school. You can claim for TAFE/technical school if they are undertaking secondary school studies, but not for trade or general courses. You cannot claim for children at university or for their university costs. In your case, your child is not undertaking a primary school course on the three half days of transitioning from preschool to primary school. This is because there is no primary curriculum taught during this transition period. Therefore any eligible expenses incurred prior to 1 July 2012 are not eligible expenses for education tax refund purposes because your child won't satisfy the schooling requirement until July 2012.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.