Schoolkids Bonus – Replacement of Education Tax Refund
The Australian Government announced in the 2012 Budget that the Education Tax Refund (ETR) would be replaced by a new payment called the Schoolkids Bonus.
This new cash payment will help families with the costs of education.
Starting from 1 January 2013, this new payment will help 1.3 million Australian families with children at school pay for expenses such as uniforms, books, school excursions, stationery and other costs like music lessons and sports registration fees.
Eligible families will be paid the bonus automatically in January and July.
Each year, families will receive:
- $410 for each child in primary school (two instalments of $205) and
- $820 for each child in high school (two instalments of $410).
What does this mean for me?
As part of the transition to the new Schoolkids Bonus, the ETR for 2011-12 will be paid as a lump sum in June 2012.
All eligible families will receive the maximum ETR entitlement for 2011-12, without having to claim through their tax return.
Eligible families will automatically receive the payments into their bank account of:
- $409 for each child in primary school
- $818 for each child in secondary study.
You will receive the Education Tax Refund payment if you were eligible on 8 May 2012 for:
Family Tax Benefit Part A for a dependent child who is:
- 5 to 11 years of age (primary education)
- 12 to 15 years of age (secondary education), or
- 16 to 18 (or turning 19 years of age in the 2012 calendar year) and
- in full-time secondary study, or exempt from full-time study.
If you share the care of your child with another person, you will receive a percentage of this payment. This will be based on the percentage of Family Tax Benefit you receive for the child.
If you claim Family Tax Benefit as a lump sum, you will get the payment (if eligible) when your lump sum claim is assessed.
You may also receive the Education Tax Refund payment if on 8 May 2012 if you were:
- 16 to 18, (or turning 19 years of age in the 2012 calendar year)
- in full-time secondary study, and
- eligible for Youth Allowance, ABSTUDY (Living Allowance) or Disability Support Pension with Pensioner Education Supplement.
The Schoolkids Bonus will be paid automatically and upfront, which means:
- you don’t need to keep receipts for education expenses
- no separate claim is required.