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Edited version of private ruling
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Ruling
Subject: Education tax refund
Question
Does the full cost of purchasing a laptop computer qualify as eligible education expense for purposes of claiming the Education Tax Refund (ETR) even though the laptop computer is also used by other members of the family?
Answer
Yes.
This ruling applies for the following period:
Year ended 30 June 2010
The scheme commenced on:
1 July 2009
Relevant facts and circumstances
Relevant facts
You bought a laptop computer for your child who goes to primary school.
The laptop computer is used approximately 15% by your child and the rest of the time by other family members in your household.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 61-M and
Income Tax Assessment Act 1997 Section 61-640.
Reasons for decision
Summary
It is considered that the full amount of purchasing the laptop computer for your child is an eligible education expense.
Detailed reasoning
Subdivision 61-M of the Income Tax Assessment Act 1997 (ITAA 1997) introduces a refundable tax offset for eligible education expenses. The 50 per cent offset applies to eligible expenditure of up to a maximum of $780 for children undertaking primary studies and $1,558 for children undertaking secondary studies.
Section 61-640 of the ITAA 1997 defines eligible education expenses to include the cost of acquiring a computer for home use or use in an educational institution.
Eligible education expenses are claimable only where they are:
· incurred by an eligible person
· relates to a child's education
· an item that is specified in the legislation as an eligible education expense, and
· incurred on a day when the child or independent student satisfied the schooling requirement.
Subsection 61-640(2) of the ITAA 1997 provides that an expense is excluded as an education expense for tax purposes to the extent that:
· it is tax deductible
· it is subject to another tax offset, or
· you receive, or are entitled to receive, a reimbursement or payment under an Australian Government benefit, grant or subsidy.
In your case, you purchased a laptop computer for your child who attends primary school. You incurred the expense for your child's education. It is irrelevant if the computer equipment is available for use or being used by other members in the household. Therefore, the full amount of purchasing the laptop computer is considered an eligible education expense.