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

Ruling: Q1: Does the cost of purchasing a school bag qualify as an eligible education expense for the purposes of the education tax refund? | A1: No.


Relevant legislative provisions: 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): · laptop computers, home computers and associated costs, including the repair and running costs of computer equipment · computer-related equipment such as printers, USB flash drives, and accessories designed and manufactured solely or predominantly for use with a laptop or home computer - for example laptop bags and wireless mouse · disability aids to assist in the use of computer equipment for students with special needs · home internet connections, including the costs of establishing and maintaining them · 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 material, including prescribed textbooks, associated learning materials, study guides and stationery - for example, pencils, pens, compasses and glue · prescribed trade tools. In your case, you have incurred expenses relating to the purchase of a school bag. While we acknowledge a practical need for the school bag, this item however does not meet the conditions of an eligible education expense. Therefore the school bag 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. | Relevant facts: Your child needs a school bag to carry their books and other stationary to school.