Private ruling: Education tax refund
Published: November 2011
Ruling period: Year ending 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Are you entitled to include in an education tax refund (ETR) claim the cost of your telephone line rental where there is no telephone attached and the line is used exclusively for accessing the internet? | A1: Yes.

Relevant facts and circumstances: You have children that attend secondary school. You make and receive all phone calls from your mobile phone and do not have a home phone. For you to have internet access at home, you were required to have a land line installed. You are charged a monthly line rental fee for this connection. The line is used exclusively for accessing the internet.

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

Reasons for decision: Summary: Under Subdivision 61-M of the Income Tax Assessment Act 1997 (ITAA 1997), an education expenses tax offset also referred to as the ETR provides a partial refund of the education expenses you incur for a primary or secondary school student in your care. For the purposes of the ETR eligible education expenses are items that support a child's or independent student's primary or secondary school education. Section 61-640 of the ITAA 1997 mentions the kind of expenses that are eligible education expenses. It includes the cost of establishing and maintaining a home internet connection. In your case, you were required to have a land line installed for internet access, and you incur a monthly line rental cost. There is no telephone attached as you make and receive all phone calls via your mobile, so the line is used exclusively for accessing the internet. As the line is only used for internet access, the monthly rental charge would qualify as a cost of maintaining a home internet connection. Therefore, you are entitled to include this cost in your calculation of your ETR claim.

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