Schoolkids Bonus cash payment to replace Education Tax Offset
The Prime Minister announced that the Government would make a new no-strings cash payment, called the Schoolkids Bonus, to certain families with children at school. It will apply from 1 January 2013, and each year, families will receive the Schoolkids Bonus worth:
The new automatic payment will replace the Education Tax Refund (or offset) from 1 January 2013. Because the payment is automatic and upfront, it means:
Schoolkids Bonus will not be a taxable payment.
In the same way as the Education Tax Refund, the Schoolkids Bonus will be available to families receiving Family Tax Benefit Part A plus young people in school receiving Youth Allowance and some other income support and veterans' payments.
As part of the transition to the new Schoolkids Bonus, the Education Tax Refund for 2011-12 will be paid out in full to all eligible families as a lump sum payment in June 2012. This means families will receive their full Education Tax Refund entitlement ahead of tax time - so parents won't have to worry about keeping receipts or making claims when they do their tax this year.
More help for families
As part of the Benefits of the Boom package, more than 1.5 million families who receive Family Tax Benefit (FTB) Part A will receive a boost from 1 July next year.
All families that are eligible for FTB Part A will receive an increase: