Remember to factor in parental subsidies at tax time
While you’re sorting your income and expenditure at tax time, make sure you know what you’re entitled to as a parent, carer or grandparent.
When the cost of raising kids is ever-increasing, every little bit helps and a bigger tax return is generally welcome. These days just sending a child to school comes with mounting costs, regardless of the type of school they go to. It’s estimated that the total cost of putting a child born todayi through school would amount to an estimated $66,862 in a government school and $468,397 in a private schoolii.
The good news is that depending on your situation you may be eligible to claim for government subsidies and tax breaks this end of financial year.
Subsidies for text books and uniforms
Depending on the state you live in, you may receive rebates or concessions on things like textbooks, learning resources, school uniforms and shoes.
The state governments in Queensland, Victoria, South Australia and Western Australia offer education programs to help with the costs of education, and in Tasmania grandparents may receive financial support to help with the cost of raising their grandchildren.
Help for special needs and circumstances
If your child has a disability or special needs, you could receive tax-free payments regardless of your assets or income levels.
And if your school-aged child can’t attend a government school in your state because they live in an isolated area or board away from home, you may be eligible for extra support too.
If you’re living in New South Wales in an area where there’s no public transport, and you drive a child to school, the state government may provide you with a private vehicle conveyance subsidy to help with your transport costs.
Last calls for schooling bonus
You could receive an automatic payment of $430 or $856 depending on the age of your child. But this is the last year the federal government will be providing the Schoolkids Bonus. It’s an income-tested payment for parents (and carers) with dependent children in primary or secondary school.
This year the payments will be made for the last time in July so call us today to see if you may be eligible.
Tax offset and free super boost
You and your partner may have two opportunities to use a tax offset and government payment to boost your tax return and super balance. That way, while you’re taking care of the kids, you’re setting yourself up to be better off down the track too.
If you’re a stay at home parent or you work part-time, your partner can make an after-tax contribution into your super and then claim an 18% tax offset on the first $3,000 paid into your super account—depending how much income you’ve earned this financial year.
Depending on your income,iii the government may also boost your super with up to $500 when you make an after-tax contribution into your super, so chat with us about how to take advantage of the free $500.
Boost your tax return
The cost of kids has almost doubled in the last ten yearsiv so it’s important to ensure you make the most of the tax breaks and subsidies available to you.
Call us today so we can chat about your needs this financial year, including any additional financial support you may be entitled to. We’re here to help make sure you’re getting everything you’re entitled to.
i Pre-school, primary and secondary schooling in an Australian capital city.
iii Money earned from employment or self-employment.