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Edited version of your private ruling

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Ruling

Subject: Education Tax Refund

Question

Is the hand held educational gaming device an eligible expense for the Education Tax Refund?

Answer

No.

This ruling applies for the following period:

Year ended 30 June 2012

The scheme commences on:

1 July 2011

Relevant facts and circumstances

You purchased a hand held gaming device that focuses on educational games.

The appliance was purchased as an educational tool for your child.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 61-640.

Reasons for decision

Subdivision 61-M of the Income Tax Assessment Act 1997 (ITAA 1997) introduces a 50 per cent refundable tax offset for eligible education expenses (the Education Tax Refund) up to a maximum of $794 for children undertaking primary studies and $1,588 for children undertaking secondary studies.

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):

    · laptops, home computers and associated costs;

    · computer-related equipment such as printers; and disability aids to assist the use of computer equipment for students with disabilities;

    · home internet connection;

    · computer software;

    · school textbooks, other paper-based school learning materials and stationery; and

    · prescribed trade tools.

Expenses that are not eligible expenses for the purposes of the Education Tax Refund include:

    · school fees;

    · student attendance at school-based extra-curricular activities such as excursions;

    · tutoring costs;

    · musical instruments;

    · sporting equipment;

    · school subject levies (consumables for particular subjects such as woodwork, art or home science); and

    · computer games and consoles.

In your case, you have incurred expenditure to purchase for your child, a hand held gaming device that focuses on educational games. This expense would not be considered a lap top or home computer and does not satisfy the definition of an eligible education expense. The expense for this item can be likened to the examples provided for ineligible education expenses such as computer games and consoles.

Therefore, the expenditure incurred to purchase the device does not qualify as an eligible expense for the purpose of the Education Tax Refund.


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