Education Tax Refund Transitional Payment - School Kids Bonus

Tax Accountant Penrith NSW

The 2012-13 Federal Budget scrapped the Education Tax Refund (ETR) for 2012 and replaced it with the School Kids Bonus, to commence in January 2013.

The much talked about transitional “ETR Payment” will replace the ETR entitlement that would have been available in the 2012 tax return. This transitional ETR Payment will be paid in June 2012.

The ETR Payment lump-sum amount will be paid to all families entitled to Family Tax Benefit Part A on May 8th this year for a school aged child, as well as to young people in secondary education who are receiving certain student income support payments on May 8th and to eligible recipients under the Veterans' Children Education Scheme or the Military Rehabilitation and Compensation Act Education and Training Scheme.

The one-off ETR payment will be $409 for a child in primary school and $818 for a secondary school child - the same maximum amounts that would have been available in the 2011-12 tax return.

No adjustments or apportionments will apply to the transitional ETR Payment for children who started or finished school in the 2011-12 financial year.

So, for parents entitled to FTB Part A on 8 May 2012,  if you have a child who started primary school in 2012 you will receive the full primary payment.  Similarly, a child who is participating in a school based apprenticeship, will be entitled to the full Secondary payment.

The School kids Bonus will be available from 2013 to families receiving Family Tax Benefit Part A, plus young people in school receiving income support payments such as youth allowance, ABSTUDY, disability support pension and veterans' educational allowances, on the eligibility test date.

Contact us at A Grade Tax Accountants Penrith on (02) 4731-1405 for all your tax accounting, bookkeeping, tax returns, superannuation and tax advice.

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