Work out your total eligible education expenses for all eligible children
$
A
Step 2
The maximum tax offset amount for one child
Primary = $375, or
Secondary = $750
$
B
Step 3
How many days in the year were you eligible?
C
Step 4
Work out your maximum tax offset amount for this child
(B x C) divided by 365 – round to two decimal places
D
Step 5
Repeat Steps 2 to 4 for each additional eligible child
Step 6
Add the amounts from D for each child
$
E
Step 7
Multiply your expenses from A by 50%
$
F
Step 8
Use the lower of the amounts at E or F
Write the amount at G on your claim
G
Step 9
Work out if you have an excess
If you used F, your excess =
If you used E, your excess is (F minus G) x 2
$ nil
$
L
Example
Nick and Mel have three school children and have incurred eligible education expenses worth $3,900. Max and Gus are in secondary school and Grace is in primary school. Mel receives FTB Part A for their children and would calculate her entitlement using the following table.
Number of primary school students
1 (Grace)
X
$375 (B)
X
365 (C)
/365
=
$375
D
Number of secondary school students
2 (Max & Gus)
X
$750 (B)
X
365 (C)
/365
=
$1,500
D
Maximum refund amount
Total of Ds
=
$1,875
E
Eligible education expenses
$3,900 (A)
X
50%
=
$1,950
F
Lesser of E and F = ETR amount
$1,875
G
If E is used, Excess = (F-G)x 2
$1,950 (F)
-
$1,875 (G)
X
2
=
$150
L
$150 will be the excess Mel can add to her other eligible education expenses in 2010 to calculate her ETR. She would claim this in her 2009-10 tax return/claim, as long as Mel still meets the eligibility requirements.
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