Replacing the Education Tax Refund with a Schoolkids Bonus
Proposed start date: 1 January 2013
Under the current rules, the Education Tax Refund (ETR) is a refundable tax offset available to families who receive Family Tax Benefit Part A.
The Government proposes abolishing the ETR and replacing it with a new Schoolkids Bonus. This will be paid to eligible recipients in two equal instalments in January and July each year.
Every family with a child at school will receive $410 per annum for each primary school student and $820 per annum for each secondary school student.
The new Schoolkids Bonus will be available to families with children enrolled and attending school who are in receipt of:
- Family Tax Benefit Part A (FTB A), or
- Other qualifying income support payments or allowances under a prescribed educational scheme that precludes the family from receiving FTB A.
- The Government also proposes that as a transitional measure, the ETR in 2011/12 will be replaced by a one-off lump sum payment to eligible families in June 2012.