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Replacing a refund with a bonus

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Families with school-aged children who qualify for Family Tax Benefit (FTB) Part A, or school children who receive the Youth Allowance, will automatically be paid the Schoolkids Bonus. This comes into effect from 1 January 2013.

The bonus will provide $410 for each primary school child and $820 for each high school child. The total amount will be split into two payments made in January and July each year. 

As part of the transition to the scheme, all eligible families will receive a lump sum payment for the Education Tax Refund in June 2012.

While the reforms create administrative simplicity for parents, the bonus is means tested and higher income earners who are not eligible under the FTB rules will miss out. Be aware that the legislation hasn’t been passed, so don’t throw out your receipts just yet.

If your adjusted taxable income is more than $46,355 for this financial year, your payment will reduce by 20 cents for each dollar above $46,355 until your payment reaches the base rate of Family Tax Benefit Part A.

 Your Family Tax Benefit Part A will stay at that rate until your adjusted taxable income reaches $94,316 a year (plus $3,796 for each Family Tax Benefit child after the first). Family Tax Benefit Part A will reduce by 30 cents for every dollar over that amount until your payment reaches nil.

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