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

Ruling: Q1: Is the cost of a cognitive assessment and report an eligible education expense? | 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 have a child that is attending school. You have incurred expenses for a cognitive assessment and report from a psychologist that determines if your child still has a speech language impairment. The results of the assessment are sent to the school. As a result of this information, the school receives funding to put aids in place to assist your child in their schooling.

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 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 a cognitive assessment and report to determine if your child still had a speech language impairment. This expense does fall under the definition provided in section 61-640 of the ITAA 1997. Accordingly, the cognitive assessment and report is not an eligible education expense for the purposes of the ETR.

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.