13.7.1 Education Tax Refund (ETR) Administrative Scheme

13.7.1 Education Tax Refund (ETR) Administrative Scheme

Note: The ETR Administrative Scheme was for a one-off payment in June 2012, and this information is more for historical value only. However, there may currently still be students who could be eligible for the 2012 payment and have not yet claimed.

Background

The Schoolkids Bonus is an upfront education payment that replaced the Education Tax Offset claimable through the Australian Taxation Office (ATO).

As part of the transitional arrangements, a one-off payment of $409 for eligible primary school children and $818 for eligible secondary school children was paid in mid-June 2012 in the place of claiming expenses for the 2011/12 taxation year.

Administrative Scheme

An administrative scheme was established to allow ETR Payments to be made to those who missed out on the ETR Payment in June 2012 but would otherwise been able to claim education expenses through their 2011/12 tax returns. There is no time limit for people to claim under this Administrative Scheme. However, they must have been in receipt of an education allowance and the student at school sometime during 2011/12.

There are 12 eligibility categories. Those bolded below are relevant to DVA clients:

1. Early primary school starters;

2. Early secondary school starters;

3. Individuals turning between 20 and 25 in 2012;

4. Individuals receiving other payments not eligible under statutory scheme;

5. Individuals in part-time secondary study on 8 may 2012;

6. Individuals aged under 16 years receiving income support;

7. Individuals with a nil rate of income support/VCES/MRCAETS on 8 May 2012;

8. Individuals who ceased secondary study before 8 May 2012;

9. Student who died before 8 may 2012;

10. Individuals with a change in circumstances before 8 May 2012;

11. Individuals with a change in circumstances on or after 9 May 2012; or

12. A person able to demonstrate they were entitled to an amount under the ETR that is greater than the amount paid under the statutory scheme.

Please note the following, which applies to all categories:

• calculations only apply to the 2011/12 financial year;
• calculations only apply for primary and secondary courses;
• client has not received the ETR Payment previously for the same student;
• if the client is eligible for more than one category, the category resulting in the highest payment applies; and
• no form is required but proof of enrolment at school may be required.

Category 3: Individuals turning between 20 and 25 in 2012

This category applies to both parents of school students and the students themselves who receive an education allowance.

Eligibility:

• parent of, or student born after 1 July 1986 and on or before 1 January 1993 (20 to 25 years old);
• student undertaking secondary school on 8 May 2012; and
• client in receipt of an education allowance on 8 May 2012.

Rate:

• $818; or
• if separated parents share care, then the applicable proportion of $818 equal to the proportion of education allowance received; and/or
• pro rata of $818 based on number of days under 25 years old during 2011/12.

Category 7: Children with a nil rate of income support or education allowance on 8 May 2012

This category applies to school students only who receive an education allowance.

Eligibility:

• student born after 1 July 1986 (that is, under 16 years old on 8 May 2012);
• student undertaking secondary school on 8 May 2012; and
• student in receipt of an education allowance sometime during 2011/12 but not on 8 May 2012.

Rate:

• pro rata amount of $818 based on number of days in 2011/12 in receipt of education allowance with respect to that student; and/or
• if separated parents share care, then the applicable proportion of $818 equal to the proportion of education allowance received; and/or
• pro rata based on number of days under 25 years old during 2011/12.

For circumstances where the parent received the education allowance, see Categories 10 and 11, Individuals with a change in circumstances before, on or after 8 May 2012.

Category 8: Individuals who ceased secondary study before 8 May 2012

This category applies to both parents of school students and the students themselves who receive an education allowance.

Eligibility:

• parent of, or student born after 1 July 1986 but before or on 8 May 1996 (that is, aged 16 to less than 25 years old in 2012);
• student undertaking secondary school sometime during 2011/12 but not on 8 May 2012; and
• parent or student in receipt of an education allowance sometime during 2011/12.

Rate:

• pro rata amount of $818 based on:
• number of days in 2011/12 in receipt of an education allowance and student in secondary school under 25 years old; and
• if separated parents share care, then the applicable proportion of $818 equal to the proportion of education allowance received.

Category 10: Individuals with a change in circumstances before 8 May 2012

This category applies to parents only who receive an education allowance and is mainly used for those who had a greater shared care proportion before 8　May 2012.

Eligibility:

• parent of a student born after 1 July 1986 (under 25 years old in 2012);
• student undertaking secondary school sometime during 2011/12;
• parent in receipt of an education allowance sometime during 2011/12; and
• between 1 July 2011 and 7 May 2012, the education allowance was reduced to nil or the shared care proportion was greater than the proportion received of the ETR.

Not eligible:

• student was paid the ETR under the statutory scheme while they were living at home or a dependent child. That is, they may be eligible under the Administrative Scheme if they were living away from home or independent on 8 May 2012.

Rate:

A person is entitled to an ETR or top-up of $409 for primary or $818 for secondary based on:

• the ETR previously paid;
• number of days in 2011/12 in receipt of an education allowance and student in school under 25 years old; and
• if separated parents share care, then the applicable proportion of $818 equal to the proportion of education allowance received.

For circumstances where the student received an education allowance, see Category 7, Children with a nil rate of income support or an education allowance on 8 May 2012.

Category 11: Individuals with a change in circumstances after 8 May 2012

This category applies to parents only who receive an education allowance and is mainly used for those who had a greater shared care proportion after 8　May 2012.

Eligibility:

 parent of a student born after 1 July 1986 (under 25 years old in 2012);

 student undertaking secondary school sometime between 1 July 2011 and 30 June2012;

 client in receipt of an education allowance sometime during 2011/12 for that student; and

 between 9 May 2012 and 30 June 2012, an education allowance was granted or the shared care proportion was greater than the proportion received on 8 May 2012.

Rate:

• A person is entitled to an ETR or top-up of $409 for primary or $818 for secondary based on:
• the ETR previously paid;
• number of days in 2011/12 in receipt of an education allowance and student in school under 25 years old; and
• if separated parents share care, then the applicable proportion of $818 equal to the proportion of education allowance received.

For circumstances where the student received the education allowance, on 8 May 2012 was undertaking secondary study, was not receiving an education allowance, see Category 7, Children with a nil rate of income support or education allowance. Where the student was not undertaking study on 8 May 2012 nor receiving an education allowance, and over 16 years old, see Category 8, Individuals who ceased secondary study before 8 May 2012 (disregard the heading and consult the criteria under 2.12 of the ETR Payments Administrative Scheme Determination.

Category 12: A person able to demonstrate they were entitled to an amount under the ETR that is greater than the amount paid under the statutory scheme

Eligibility (for parent):

• person demonstrates they were entitled to a greater amount of the ETR than the amount paid for the student under the statutory scheme; and
• student must have met the conditions described in subsection 61-610(1) of the Income Tax Assessment Act 1997.

Not entitled:

• if the student was paid an ETR payment under the statutory scheme while they were living at home or a dependent child.

Eligibility (for independent student)

• on 8 May 2012 a person was independent during 2011/12; and
• can demonstrate they were entitled to a greater amount of the ETR than the amount paid under the statutory scheme.

Rate:

A person is entitled to an ETR or top-up of $409 for primary or $818 for secondary based on:

• the ETR previously paid;
• number of days in 2011/12 in receipt of an education allowance and student in school under 25 years old; and
• if separated parents share care, then the applicable proportion of $818 equal to the proportion of education allowance received.