Eligible education expenses in excess of what can be claimed in a year can be carried over to the following year. Eligible expenses that are not claimed in the income year in which they are incurred or in the next income year are lost and cannot be claimed in later years.
Example – carrying excess eligible education expenses forward to the following year
Lachlan is in year 10 and his parents purchased a computer, a printer and educational software for his study totalling $1,800. Lachlan also attended the school the year before so he satisfies the schooling requirement for the whole of the income year. As Lachlan’s father Robert receives FTB Part A payment he would be eligible to make a claim for the whole of the income year. For Robert to determine if he has excess eligible education expenses for the current year he would halve the eligible education expenses ($900) and compare the amount to the Education Tax Refund limit ($750 for secondary school student ) he can claim. In this situation, there is an excess of $150. Robert would double the excess ($300) to restore it to the original expense value. Assuming Robert and Lachlan still meet the eligibility and schooling requirements for the Education Tax Refund in the following income year, Robert can include the $300 of expenses in the following year when calculating his Education Tax Refund entitlement for that year.
Sections within What is an eligible education expense?
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