Private ruling: Education tax refund - eligible expense
Published: May 2012
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Are foreign language lessons an eligible expense for the education tax refund? Answer No.

Relevant facts and circumstances: You have children that are currently attending primary school. Your children are attending lessons to teach them a foreign language. The lessons are held outside of school hours and do not form part of the school curriculum. The primary school they attend does not teach the foreign language, however the high school that they will be attending in the future, does teach that language as a part of the curriculum. You have incurred expenses being lesson fees which include all required materials and resources.

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

Reasons for decision: Summary: The Education Tax Refund (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 and other paper-based school learning materials - including prescribed textbooks, associated learning materials, study guides and stationery · prescribed trade tools. Expenses which do not fall under the above categories are not eligible expenses for the purposes of the ETR. You incurred expenses for foreign language lessons for your children. This expense does fall under the definition provided in section 61-640 of the ITAA 1997. Accordingly, the lessons are not an eligible education expense for the purposes of the ETR.

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