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Edited version of private ruling
Authorisation Number: 1011820742051
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Ruling
Subject: Education tax refund
Question
Does the cost of your electronic device qualify as an eligible education expense for the purposes of the education tax refund (ETR)?
Answer
Yes.
This ruling applies for the following period
Year ending 30 June 2011
The scheme commenced on
1 July 2010
Relevant facts
You child is completing primary school studies.
The primary school that your child attends implements an electronic device learning program for students.
Students participate in a range of class experiences using the electronic device.
The school does not permit students to take the devices home.
You have chosen to purchase a personal electronic device to complement the school program and reinforce school learning at home.
You have provided a support letter signed by the school principal.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 61-640
Reasons for decision
For the purposes of the ETR eligible education expenses are items that support a child's or independent student's primary or secondary school education. Section 61-640 of the Income Tax Assessment Act 1997 mentions the kind of expenses that are eligible education expenses. They include the purchase, lease, hire or hire-purchase costs, repairs and running costs of:
· laptops, home computers and associated costs
· 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, 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 - for example, tools required to complete a school-based apprenticeship.
It is considered that the cost incurred for the electronic device is like an expense incurred on a computer. Therefore, the cost associated with purchasing the electronic device qualifies as an eligible education expense for the purposes of the ETR.
To be eligible to claim the ETR, the parent or carer would need to have received FTB part A for the child. Therefore, while the device is considered an eligible education expense, a parent or carer would not be able to claim this expense unless they were entitled to claim the ETR. For more information on the ETR, please refer to the Tax Office website at www.ato.gov.au.