Private ruling: Education Tax Refund
Published: July 2011
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Does the cost of a desk qualify as an eligible education expense for the purposes of the Education Tax Refund (ETR)? | A1: No.

Relevant facts and circumstances: You have a child attending school. You have bought a desk for them to use to complete their school work. The desk houses their computer and stationery needs.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 61-M and | Income Tax Assessment Act 1997 Section 61-640.

Reasons for decision: Summary: The desk is not eligible for the ETR as it is not included on the list of eligible items. | Detailed Reasoning - Detailed reasoning: The ETR is a government initiative to help with the cost of educating primary and secondary school children. Eligible parents, carers, legal guardians and independent students may be entitled to a refundable tax offset equal to 50% of eligible education expenses: subdivision 61-M of the Income Tax Assessment Act 1997 (ITAA 1997). For the purposes of the ETR, eligible education expenses are items that support a child's schooling and education covering the purchase, lease, hire or hire-purchase cost of (section 61-640 of the ITAA 1997): · laptops, home computers and associated costs, · computer-related equipment such as printers, USB flash drives as well as disability aids to assist the use of computer equipment for students with special needs, · home internet connection, including the costs of establishing and maintaining; · computer software for educational use, word processing, spreadsheet, database and presentation software and internet filters and antivirus software, · school textbooks, other paper-based school learning materials including prescribed textbooks, associated learning materials, study guides and stationery; and · a tool of trade. Although furniture items such as desks and computer stands may be used in connection with a child's education, these items do not meet the conditions of eligible education expenses. Therefore furniture items are not eligible education expenses for the purposes of the ETR.

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