Supporting families with the costs of education
Building on past support for kids at school
The new Schoolkids Bonus will build on the Government's previous improvements to support families with school children.
From 1 January this year, the Government has delivered an increase to Family Tax Benefit Part A (FTB–A) for 16 to 19 year olds in full time secondary school to match the higher rate for 13 to 15 year olds. Families received an increase of up to $4,208 a year in FTB–A for each child aged 16 to 19 years in full time secondary school.
This recognises the increased costs as children get older and helps families to support their children to stay in school.
A simpler way to provide support
Under the Schoolkids Bonus families will no longer have to keep receipts or make a claim as part of their tax return. This will especially benefit those low income families who do not complete tax returns, and currently have to lodge separate claims for the ETR.
More timely assistance for back to school expenses
The Schoolkids Bonus will help families when they need it most. From 2013, payments will be made in two equal instalments, at the start of the school terms in January and July. As a transitional arrangement, the full 2011-12 ETR payment will be paid automatically in June 2012—this will guarantee that no eligible family misses out on their full entitlement, and means they will not have to wait until tax time.
More flexible assistance for all education needs
Families will also have greater flexibility in how they choose to use the Bonus. They can use it to pay for a wider range of education related expenses, such as school fees, school excursions and music lessons, supporting a broad and well-rounded education for their children.
